THUMBS UP FOR NEAL’S BUDGET

EZULWINI - Captains of industry, businesspeople and CEOs labelled Minister of Finance Neal Rijkenberg’s maiden budget as a transparent and credible path to economic recovery.

The major players in the Kingdom of Eswatini’s economic landscape welcomed the 2019/20 national budget, delivered by Rijkenberg a few weeks ago.

Hope

The general consensus was that government’s approach, as contained in the national budget, boldly charted a pragmatic course that offers hope for better times ahead for the kingdom.

The agriculture and manufacturing sectors held the highest promise for economic recovery in the country. Government allocated an amount of E1.7 billion for the ministry of agriculture.

This transpired during the Economic Forum organised by Standard Bank Eswatini, which was held last Friday at the Royal Swazi Convention Centre, Ezulwini. The event brought together over 100 businesspeople, mainly customers of the bank, influential leaders in the private and public sector for insightful analysis of the budget and key developments in the country’s economic landscape.

The discussions on the economic growth expectations amid the constraints facing the local economy were led by Ferishka Bharuth:  Economist Africa Research based in Standard Bank South Africa, and Economist Sanele Sibiya from the University of Eswatini (UNESWA).

In attendance was Standard Bank Chairman Joe Shilubane and members of the board,  Chief Executive Mvuselelo Fakudze and key executives of the bank, CEOs and executives of the country’s leading entities and State-Owned Entities (SOEs). Participants in the Standard Bank Economic Forum noted that there was scope for an acceleration in investment-led growth, under the new administration, especially as confidence grows in the economy.

Members of Parliament passed this year’s fully financed E21.83 billion budget this week. Bharuth said the strongest attribute was that Minister Rijkenberg presented a fully-funded budget, while also ensuring a higher level of transparency about the challenges that the country faces.

She also highlighted government’s commitment towards belt tightening and increasing streams for revenue creation. Rijkenberg emphasised the collective effort of government towards fiscal consolidation by restraining expenditure.

“The government gave a realistic view of how the budget will be financed, was transparent on the extent of arrears that were accumulated and came out with a clear plan to clear the arrears this fiscal year.

The budget also gave an honest view about the economic constraints that the country faces, whilst offering solutions on how things could be turned around,” said Bharuth.

She noted that with the primary goal being fiscal consolidation, fiscal deficit was estimated to be E2.98 billion in 2019/20, about 4.5 per cent of Gross Domestic Product (GDP)

“This deficit we are talking to is contingent on the approval of the new revenue measures and the sale of government assets,” Rijkenberg explained in the budget speech.
 

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