By Bahle Gama | 2019-03-20

 

Captains of industry, business people, global economists and major players in the Kingdom of Eswatini’s economic landscape have welcomed the 2019 national budget delivered by the Minister of Finance Neal Rijkenberg, saying it presents a transparent and credible path to economic recovery.

The general consensus among business people is that His Majesty’s government’s approach as contained in the national budget boldly charts a pragmatic course that offers hope for better times ahead for the Kingdom of Eswatini.

The agriculture and manufacturing sectors held the highest promise for economic recovery in the Kingdom of Eswatini.

This transpired during the Economic Forum hosted by Standard Bank Eswatini at the Royal Swazi Convention Centre, Ezulwini last Friday. The event brought together over 100 business people, 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, an Economist Africa Research based at 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 forum noted that there is 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 E22.97 billion budget last week. Of this, E18.86bn represents total government revenue estimates, an increase of E2.16bn (13 per cent) from SZL16.7bn revenue estimate in the last national budget (FY2018/19)

Bharuth said the strongest attribute is that Minister Rijkenberg presented a fully-funded budget, whilst 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. Minister 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,” says Bharuth.

She notes that government intends to reduce the fiscal deficit to 4.5 per cent of GDP in the current financial year (FY2019/20).

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