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The directive came from His Majesty King Mswati III when he delivered the Speech from the Throne during the Official Opening of the 12th Parliament yesterday.
His Majesty first announced that the national budget is set to receive a boost from taxes collected from internal and external revenue sources.
This, His Majesty said, bodes well for the new parliamentarians as they would have resources to work with.
The King then encouraged government to establish the fund.
In jest, he used the vernacular saying, “Sisu sibekelwa ngaphandle” which means that one must always be prepared for the unknown.
It should be noted that the previous Cabinet, through Minister of Finance Neal Rijkenberg, mobilised for the establishment of a fund meant to address the volatility in SACU receipts which had in previous years caused the country’s economy to remain on an unsustainable path for a long time.
Rijkenberg then tabled regulations for what is referred to as the SACU Stabilisation Fund and proposed that about E1.4 billion be pumped into it for any reduced SACU receipts in the future.
Meanwhile, His Majesty also touched on the country’s economic performance and fiscal outlook, where he stated that there were several encouraging signs that offered hope for the upcoming year.
The King mentioned that the Eswatini economy demonstrated strong resilience, experiencing a significant growth of 4.8 per cent in 2023, following a period of slow growth at 0.5 per cent in 2022.
Also, His Majesty said initial projections indicated that 2024 was expected to be equally promising, with a forecasted growth rate of 4.9 per cent.
Elaborating on the economic outlook, His Majesty said the country had also experienced a decrease in the fiscal deficit, from about 4.5 per cent in 2021/22 to 1.6 per cent of GDP in 2023/24.
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“This positive change can be attributed to the adoption and implementation of the fiscal adjustment plan (FAP). The nation will be pleased to know that the national budget is set to receive a boost from taxes collected from internal and external revenue sources.”
In terms of the business environment, His Majesty said the private sector was expected to intensify its efforts to exploit opportunities presented by regional and international markets.
In particular, the King made reference to the Africa Continental Free Trade Area (AfCAFTA) and other bilateral agreements saying they were ready to launch the Kingdom of Eswatini to the world.
The King said emphasis should be directed towards growing the country’s presence and creating quality jobs for emaSwati.
“We must achieve our goal of becoming a global commerce hub and streamline border formalities to make trading easy. We are pleased that the kingdom is making progress with the national trade facilitation programme, but we urge urgent attention towards decreasing border congestion and seeking alternative ports of entry to lessen global supply chain risks.”
Regarding other sectors, His Majesty said the country needed to enhance its information communication and technology (ICT) infrastructure and learn how to advance the value chains to stimulate industrialisation and diversification.
“Government will engage more closely with business to create an environment that supports such investments. With the advent of the 4th industrial revolution, characterised by digital technology and artificial intelligence, we must prioritise worker retraining and upskilling. Government and the business community must work together to accelerate this process.”