Embassy of the Republic of China (Taiwan) in the Kingdom of Eswatini

SD to receive E7bn from SACU’s 2015/16 share

28/03/2014 03:00:00
SWAZILAND will receive about E7 billion from the Southern African Customs Union (SACU) for the year 2015/16.

Standard Bank Group Fixed Income and Currency Strategist Yvett Babb said the country would again for the year 2017 get a share of E7 billion.

She said the South African National Treasury would pay money to SACU members which consist of Botswana, Lesotho, Swaziland and South Africa.

Adding, Babb said the country’s economy was expected to continue growing in the next coming years though it was the slowest growing in the Southern African Development Community (SADC).

“Swaziland is expected to receive about E7bn from SACU for the year 2015 until 2017. It’s encouraging to note that the country’s economy is expected to grow by 2% in 2014 and we commend the Swazi government for the 44% increase in capital spending as this will create jobs for masses thus stimulate economic growth,” she said during the Standard Bank economic outlook breakfast meeting at the Happy Valley Resorts.

She said investing in infrastructure development was critical for Swaziland’s growth as the construction sector would be more vibrant thus more jobs created.

policy

Babb urged government to prioritise policy implementation so as to make the business environment conducive for the country’s economy to continue realising significant growth. Babb said Swaziland had a sustainable recovery following the 2010/11 fiscal crisis because of improved fiscal policies.

Adding, she said some big companies in China have failed to service their bonds and the problems with the emerging markets, adding that this would somehow affect economies like Swaziland.

Babb pointed out that Africa going forward would be the fastest growing continent in the world as growth was estimated to be around 6%.

accepted

She said the continent was becoming more and more accepted around the world, adding that large investors were looking into Africa for new frontiers.

She said countries like Zambia and Mozambique would realise significant growth and that South Africa would be decelerated.

“Mozambique is a promising opportunity for regional integration, their transport sector, natural gases will all contribute to their gross domestic product (GDP). In five years, Mozambique can be the greatest exporter of natural gases,” she said.

Babb said South Africa was Swaziland’s major trading partner, adding that the latter relied on the former through SACU.

She said the South Africa currency which was pegged one-on-one to the local one, Lilangeni was volatile but would continue to be resilient.

Interest, inflation rates to hike
INTEREST rates are expected to hike this year.

Standard Bank Global Markets Manager Vuyo Mafrika said interest and inflation rates were expected to hike in 2014.

She said in the next coming five years, interest rates would continue escalating.

Meanwhile, Standard Bank Group Fixed Income and Currency Strategist Yvett Babb said the country’s inflation which was currently standing at 4.7% was expected to hike as power by the Swaziland Electricity Company (SEC) would be going up on April 1, 2014.