Swazi Observer

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POST COVID-19 PLAN: 40 000 JOBS STILL FARFETCHED

By ZWELETHU DLAMINI | 2021-06-13

Government and the private sector have not been able to meet the targets set for the first six months of the launch of the Post COVID-19 Economic Recovery Plan, which is expected to create 40 126 jobs after two years. Through this Recovery Plan, government intends to increase employment opportunities, expand the tax base, and restore the viability and sustainability of the Eswatini economy. Much of the proposed projects will support the government’s goal to reverse the decline in economic activities, will enhance productive sectors of the economy, and will create jobs, as well as restore the economy into a much higher level of production and productivity. According to the plan, 97 projects were going to be implemented by government and the private sector in a space of 24 months from the launch, which was in August 2020. Some of these projects were said to commence within six months, however, several of those had not taken off as yet, which resulted over 20 000 jobs not being created. Ten months later, the Minister of Commerce Industry and Trade Manqoba Khumalo is expected to provide a detailed report on the update of the progress made thus far. However, in an interview with the SABC news last month, Khumalo estimated the progress to be at about 30 per cent of the projects that have been implemented. Among the projects that were expected to have commenced by now include the upgrade of Nhlangano-Gege-Sicunusa Road worth over E500 million . This project was anticipated to create 900 jobs within six months, as government was about to finalise existing contractual obligations; which included the design feasibility funding as per proposal; design review, and to agree on financial term sheet based on proposal. Jobs Government had also stated that it would construct factory shells worth E750 million, which was to bring about 6 300 jobs (from other factory shells) between December 2020 and January 2021. The Farmers Bank, which was expected to invest E500 million and create 1 000 jobs within 18 months, has not yet started operating as it was at the time waiting for licence from Central Bank of Eswatini. Airfreight (RENAC) export/import of perishable and high value goods worth E23 million, was also expected to create about 180 jobs and was expected to commence work in November 2020. By last month, the delivery unit had been able to engage UN (which in turn engaged the World Bank) to assist the country in unlocking the hemp renewable energy project. Delivery Unit also engaged key stakeholder in the business environment, which include Eswatini Electricity Company (EEC) regarding power supply, SRA and CBE (regarding SEZs). The delivery unit also had a brainstorming session with an objective to develop a model to manage factory shells in Eswatini. Regarding government projects, government had spent E133 million in the current financial year and E1.4 billion was still required. From other funders (mostly loans) E1.3 billion has been spent, E4.5 billion was still required. One of the looming threats for government projects is the cash flow situation (both current projected). To this effect, the delivery unit, through the Government Workgroup, is currently adjusting project implementation plans in light of the cash flow realities.

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