MR14, MR21 road projects approved
MBABANE – Two road construction projects worth over E40 million are expected to commence in the current financial year.
The government intends to upgrade the Siphofaneni-Sithobela-Maloma-Nsoko (MR14) and Malom-Siphambanweni (MR21) Roads and has since received funding.
The government received financing from the African Development Bank (AfDB) towards the cost of the development of the Manzini Golf Course Interchange and intends to apply part of the proceeds to cover eligible payments under a contract for the preparation of an update to the feasibility study and detailed designs for MR14 and MR21 roads.This was revealed by the Minister of Public Works and Transport, Chief Ndlaluhlaza Ndwandwe, in a statement.
He said the specific objective was to perform the necessary engineering, economic and environmental studies.
Standards
Ndwandwe said they also want the identification of optimal, cost-effective and economically justified standards for the options of the required
ROAD NO.
MR14
MR21
ROAD NAME physical project upgrade to a paved standard for approximately 110 km of sections of gravel roads along the country’s eastern road corridor in the Lubombo and Shiselweni regions.
“We now invite eligible consultants to indicate their interest in providing these services. Interested consultants must provide information indicating that they are qualified to perform the services,” he added.
The decline in Southern African Customs Union (SACU) receipts observed last year may affect this year’s budget, according to the economist.
Maloma -Siphambanweni
Revenue
Eswatini currently has internal trade agreements with the SACU-European Free Trade Area, the SACU-MERCOSUR Preferential Trade Area, the African Growth and Opportunity Act (AGOA), and the Africa Continental Free Trade Area (AfCFTA).
Economist Thembinkosi Mavimbela said SACU was the main contributor to the country’s revenue, and a decline could decrease the latter.
He said the budget deficit for the financial year 2022–23 was projected at 4.8 per cent of GDP, amounting to E3.8 billion, and this deficit was expected to further increase
Siphofaneni - Sithobela - Maloma-Nsoko this year.
“The economic destructions caused by the shut downs and unrest will have an effect on the projections expected this year. This will make it difficult for trade to record growth as expected,” he said.
Mavimbela mentioned that the businesses owing Eswatini Revenue Service (ERS) tax were evidence of the challenges facing the local business sector.
DISTANCE
131.2km
Source
Government has been running persistent fiscal deficits while SACU remains the main source of revenue for Eswatini.
This was a result of volatile SACU receipts causing large swings in revenue collection coupled with an inadequate response in government expenditure controls.
In the last financial year, SACU receipts declined from E6.38 billion in 2021/22 to E5.82 billion in 2022/23, which is equivalent to 8.88 per cent in the current year.
In the previous quarter, E 2.9 billion was received from SACU receipts compared to E3.2 billion in the year 2021/22.
This reflected the decrease in SACU receipts expected this year when compared to last year.
Siphofaneni -Sithobela (28km) Maloma-Nsoko (27.4km)