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WHO’S TELLING WHO? AND WHAT?

07/12/2023 13:11:00 Chris Morgan

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On Friday December 1, 2023 we read in this publication about how badly the Eswatini economy has been managed (by government, of course).

It was an explanation, to parliamentarians, of the new 2023-26 National Development Strategy (NDS) by the Ministry of Economic Planning and Development. The bold presentation highlighted government’s mismanagement of the Eswatini economy, its uncontrolled spending, the failure to monitor the use of government resources; and serious corruption in the ministries. The figures 0.7 per cent and 4.7 per cent economic growth were reported as the current rate. Which is correct? Giving the benefit of the doubt, let’s assume 4.7 per cent. Not bad, but still way below the optimum rate for developing countries, broadly judged to be 7 per cent, per annum.

It was somewhat intriguing to read that the parliamentarians were “… simply squirm(ing) in their seats.” Squirming usually suggests unease, even guilt, but it is the previous government, or governments, where responsibility lies for earlier shortcomings. The new guys have a clean slate; so far. One would have preferred to read that the parliamentarians were clenching their jaws in a spirit of determination to sustain, throughout their term, a robust oversight of the activities of the administration arm of government; because that is one of their main functions. The parliamentarians should be learning verbatim the content of that NDS because the NDS is all about the same country the parliamentarians are serving.

And then on Sunday December 3, 2023, a mere two days later, out comes the champagne (metaphorically speaking) in celebration of a report in the Times SUNDAY that Moody’s Investors Service has upgraded Eswatini from B-Stable to B-Positive. The report is accompanied by comments from the minister of Finance that “this is a good indication of what we have been doing … in trying to turn the country’s economy round …” While the minister of Commerce said the rating “is a validation of the fact that the country’s economy is improving.” The three ministers – of Finance, Commerce and Economic Planning respectively – should now sit around a big table and agree which version is right. The Moody’s Investors Service is primarily a global provider of credit ratings. I would humbly suggest that our new Moody’s rating recognises the post-COVID economic catch-up, but mostly about the impact of the windfall E11 billion payment from SACU.

Sustainable

This was way above what was expected, with government impressing with the sensible – hang on, essential – measure of placing some of it into a SACU Revenue Stabilisation Fund as a buffer fund for future bad years of SACU pay-outs. Our improved credit rating will enable us to borrow more money and on better terms. I’m not alleging that strategies for sustainable economic growth are not in place, but we’ve had so many strategies over the years, but very rarely any report on what’s been delivered against those strategies. It’s sustained economic growth, not random SACU windfalls, which will improve the well-being of all emaSwati and, especially, eliminate the severe poverty.

The Moody’s report also talks about corruption in Eswatini. EmaSwati must be sick to death, of reading about it, and with a total absence of resolution. They are entitled to ask – how many corruption cases have been put on the back burner because of that intervention by the chief justice? I bet you, that it runs into hundreds; and that is disgraceful. His grounds for stopping an important corruption case were that certain provisions of the Prevention of Corruption Act 2006, conflicted with our national Constitution 2005. Right, so you amend one, or both of the two pieces of legislation to achieve harmony. But it was not done, and seven whole valuable years have gone by, with the matter just left lying on the shelf, and unresolved, mostly, at the Supreme Court. It has left the Anti-Corruption Commission (ACC) as a toothless bulldog. Did the Cabinet of the previous administration scream about the need to have this matter resolved and fast? Not a word that I saw. If, as a country, you are looking to be attractive to foreign investors who will bring capital, expertise and access to external markets, as well as creating many jobs in the country, you definitely do not want potential investors to see something like this. To reputable investors of the world, rampant and growing corruption is anathema, aka horrible.

The essence of the task of this new administration is to facilitate the development of a conducive and efficient economic environment, in which domestic and foreign direct investors are supported by efficient government services. There should also be good infrastructure and a labour force equipped for modern economies, no longer producing an excess of expensive lawyers. And the small, medium, and micro-scale enterprises (SMMEs) need a lot of technical and financial support, with organised links to the big players in the domestic economy. Only 10 per cent of our SMMEs are internationally (standards) certified, so they will not be accessing the external market any time soon. And what has happened to the e-commerce platform for which Eswatini’s bid was successful in 2019, providing a highway for SMMEs to the world market?

With due respect for their known ability, may I ask the two ministers – of Commerce and Finance respectively – the following two questions: Firstly, how many new permanent jobs were created, and officially recorded, in each of the past five years? That’s after deducting job losses, and excluding temporary jobs, especially in construction. Secondly, how was the E11 billion SACU payment allocated, over and above the National Budget allocations already approved?