Swaziland is on the brink of economic collapse and risks social upheaval if it cannot curb its excesses, said the International Monetary Fund, which has been working with the landlocked kingdom to try to stabilise its spiralling debt levels and protect social spending.
In a report published this week, the IMF said Swaziland’s economy is facing a “fiscal crisis” caused by the sharp drop in revenue from the South African Customs Union, on which it relied for most of its income, plus one of the highest public wage bills in sub-Saharan Africa, a weak private sector and reduced human capacity because of rampant HIV/Aids.
The IMF’s report noted: “The treasury balances have been depleted, the gross international reserves have fallen dramatically and the government is starting to accumulate large domestic arrears on all expenditure items. Continuing on the same trend will lead to higher domestic arrears, including on civil service wages, a spreading of the crisis to the financial sector, and possibly social upheaval.”
To reduce its growing deficit, the government has created a new revenue collection authority, proposed slashing 7 000 public sector jobs, raised fuel taxes and pledged to reduce public spending.
Those affected
The IMF welcomed these steps, but Vincent Dlamini, general secretary of the Swaziland National Public Services and Allied Workers’ Union, said: “The average working person in Swaziland supports five people, so if you cut 7 000 jobs, 35 000 people of a population of a million will be instantly affected. We don’t have a private sector that can absorb these people.
If these job losses happen, we’re going to face a social crisis. … We don’t believe [IMF measures] will promote democracy … what about the other spending that’s not being challenged?” Dlamini said there could be significant savings if King Mswati III’s household cut back on its lavish lifestyle.
In sub-Saharan Africa’s last absolute monarchy, where opposition political parties are banned, public spending is opaque. Although one in four Swazis is HIV positive and as many as 400 000 depend on government food parcels, Mswati is famous for his luxury lifestyle. The monarch, his 13 wives and their children live in sprawling mansions, drive top-of-the range BMWs and take regular trips abroad.
Fearful of repercussions in a country built on a complex system of patronage, few have the courage to speak out about what the king spends. But there has been widespread criticism of the new airport being built at an estimated cost of more than US$100-million. The government claims the airport will bring investors and tourists, but critics say the existing facility at Matsapha is adequate.
The spokesperson for the South Africa-based Swaziland Solidarity Network, Lucky Lukhele, told the Mail & Guardian that the king’s yearly personal budget exceeds R600-million, yet he recently asked for an increase. This April marks the silver jubilee of Mswati’s reign.