TOWARDS BALANCE, SUSTAINED GROWTH

This past week, the Central Statistical Office released the results of the Integrated Labour Force Survey of 2021.

I know there are different levels to the report and different dimensions it brings to light regarding the status of the labour force in Eswatini, but I would like to pay much focus to the unemployment statistics. This is a fundamental issue that the country needs to deal with.

Unemployment

A glaring 33.3 per cent of the population is unemployed, and the figure is much higher for the youth at 59.1 per cent of the youth aged 20 – 24 is unemployed, 46.4 per cent for the population group 25 – 29, and 33.8 per cent for the age group 30 – 34. Furthermore, the unemployment statistics show a general upward trend since 2007, with a decline only recorded in 2016.

Road ahead

It appears that we are at a period of perpetual stagnation as a country and we are continually failing to bolster an economy that creates jobs. The continued and sustained failure to bring the economic fundamentals under control so that we set the economy back on its growth path hence creating jobs for those that need them is a cause for concern. We need to have strong political will that will catalyse economic growth. To achieve this we need strong systems of accountability that will act to root out corruption and rent-seeking behaviour from our system and ensure a fair allocation of the resources. Below is my two cents worth on possible policy alternatives to adopt.

Radical reforms of education sector

I have noticed that one of the major contributing factors to the unemployment problem is the inherent system. We have an education system that is aimed at channing out graduates for employment. We need a radical shift in the current education paradigm, we need to recalibrate our education system to produce thought leaders, trendsetters and job creators. It is often said old ways cannot open new doors. We cannot expect as a country to escape this unemployment trap if we continue with the old way of doing things.

Embrace age of Millennials

We are now living in the age of the millennials, the fourth industrial revolution is upon us, we need to embrace these times as an economy. We cannot have baby boomers lead growth in this day and age, it is time we let young people into those leadership positions. New sources of growth are globally predicted to emanate from the tech sector, we need to embrace technology and the information age economy. We need to position the economy to take advantage of the tech sector, patent laws need to be established and government provide the backbone infrastructure and liberalise the tech sector so that the youth can fully take advantage of the sector and the costs of entry be minimised.

Financial reforms

Building a resilient economy requires a strong financial sector with proper instruments to finance the growth. Currently I have observed that it is the employed who stand a better chance to be financed through the banking system, while those aiming to push businesses can only get financed once they have a tender or a proven track record. We need to have instruments that assist start-ups, create that track record, otherwise in the absence of such, businesses shall only be the playing field of the elite with deep pockets to finance their projects. This is also apparent in the under utilisation of the loan guarantee scheme, we need to reform the scheme and make the conditions to access the loan guarantee scheme. Also, reassess the youth fund, Inhlanyelo Fund, to adequately fund start-ups.

Affirmative discrimination in public works projects

The idea of public works project first proposed in the 1970s needs to be revisited at least as a quick fix to the unemployment problem. We need to prioritise giving tenders for public works to locals, I would believe the technology required to do things like probase can actually be done by small local companies. These are tenders that can be given to those that have very minimal chances for employment in the current information age. This is one of the programmes that the country needs to culture and grow community level companies into much stable and larger companies.

Policy reforms

There is need to look at our policies, specifically the mining policy and the land policy to mention but a few. We need to ensure that Swazi Nation Land can be used as collateral so it can be used as a financial instrument. With more autonomy over the land innovation and mechanisation would be spurred up. The mineral policy needs to be liberalised to allow for small holder artisanal mining and a more liberal mineral sector with a focus on beneficiation.

Conclusion

We need, now, more than ever to focus on balanced growth and employment creation in the country. We need to prioritise the youth in policy discussions. The economy needs growth, and the economy needs jobs, the youth needs the jobs. To safeguard the future we need urgent action in the present.

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