GOVT MUST SUPPORT US – TOP BUSINESSMEN

 mfanukhona@times.co.sz

MBABANE – Top businessmen reiterate their stance that the country must lower cost of doing business to restore economic growth.

They said reduction of corporate taxes, cancellation of penalties and interests by the Eswatini Revenue Authority (SRA) could go a long way in helping companies to recoup their investments.

Andrew Le Roux, the Chief Executive Officer (CEO) of Montigny, said 2020  was one of the most difficult and disruptive years in decades. He said they mourned the loss of friends and colleagues, and further sacrificed jobs and employment opportunities. “Businesses and people suffered,” he said.

On a positive note, he said, the year 2020 could also be viewed as a time for innovation, unity and learning to do things better. Speaking for Montigny, he said, as a private sector, they had excelled. “We are smarter, fitter and wiser. And whatever 2021 brings, I am optimistic that we can overcome it together,” he said.

He said they only needed continued policy certainty from government, open borders, lowered cost of doing business and critically an accelerated vaccine rollout.  Le Roux said they had a unique opportunity to make Eswatini the best, most competitive and safest place in Africa to do business. “Let’s take that opportunity. All the very best to every business and entrepreneur in 2021!” he said.

He is also the president of Business Eswatini. Business Eswatini is the force behind organised business and employers in Eswatini. 

Business Eswatini emerges out of the amalgamation of the Swaziland Chamber of Commerce and Industry (formed in 1916) with the Federation of Swaziland Employers (formed in 1964) in July 2003. From the amalgamation, it was named FSE&CC.

SMEs crucial - Motsa

Moses Motsa, a business tycoon, described 2020 as a disaster, lamenting the emergence of COVID-19, which crippled businesses in the country. 

He said he was sure all businesses were affected, small, medium and big. Motsa said it was even difficult to make predictions for 2021. He only appealed to government to create a conducive environment that would keep emaSwati in business.

“Government must do everything in its power to create an environment that will keep everyone in business. This is the time when we cannot afford to see businesses that contribute a lot of money to the GDP closing down. Small businesses must be kept active as well,” he said.

It has always been government’s wish to reduce corporate tax from 27.5 per cent to 12.5 per cent. That could be done to make Eswatini’s corporate tax the lowest in Africa.  

The businessman said the situation meant businesses should spend wisely. He said it meant business risks should be managed appropriately. “Don’t sow where you know you won’t harvest,” warned Motsa.

Recovery Plan crucial - 

Du pont

Henry du Pont, another local businessman, urged government to first show willingness to abide by law. He said there was also a need to identify a business model that would suit emaSwati or local entrepreneurship. Du Pont said it was important that they learnt from other countries with major economies, but Eswatini should have its own model.

He said Eswatini should weigh the implications of closing down certain businesses or locking down children. He said the Post-COVID-19 Economic Recovery Plan should be used as a benchmark for all the decisions that the country could take.

He said businesses contributed to the plan which was launched by the late Prime Minister Ambrose Mandvulo. 

He said businesses and government should identify priority areas and observe precautions for sustainability and growth. He said the future of the country lies with leadership as it has the privilege to show direction through laws and policies. 

Prior to COVID-19, Eswatini faced numerous developmental challenges with stagnating poverty and economic growth. Lockdown measures were introduced from March 17, 2020, including schools closures, limitations on public and private gatherings, the suspension of non-essential travel within cities, and border closures. 

Economic activity has been damaged further by South Africa’s strict containment measures and the closure of some ports of entry with South Africa.

In its Post COVID-19 Economic Recovery Plan, government recognised that the COVID-19 pandemic was not just a health crisis but also an economic crisis. 

Before COVID-19, the Kingdom of Eswatini was already experiencing key economic challenges and so the pandemic exacerbated an already fragile economic situation.

In the 2019-2022 Economic Outlook provided by the Ministry of Economic Planning and Development, growth in Eswatini declined from 2.4 per cent in 2018 to 1.3 per cent in 2019 because of a slowdown in economic activity in the primary and tertiary sectors of the economy. Another key factor contributing to subdued economic growth in Eswatini was government’s large footprint as the key driver of the economy. 

As a result of many businesses/economic activities being dependent on government, the current fiscal challenges have constrained public expenditure and limited ability of the economy to create employment and opportunities for growth. 

While economic growth forecasts for 2020 had given prospects for economic recovery with a projection of more than two per cent growth, the global outbreak of COVID-19 resulted in a downward revision of the growth projections so that in the next coming months, the Eswatini economy was expected to experience a significant contraction in economic activities.

Noting the looming economic contraction and potential negative spillovers it would have on the different sectors of the economy, government found it necessary to draw up a national economic recovery plan to save the economy and livelihoods. On April 27, 2020, the late former Prime Minister, Ambrose Mandvulo Dlamini, assembled a team of Cabinet ministers and tasked them to develop a Post COVID-19

focus on key sectors

Economic Recovery Plan to address the impacts of COVID-19 on the economy by creating opportunities for income generation and wealth creation in key priority sectors of the economy. 

The purpose of the Plan is to resuscitate the economy and reignite economic growth through high impact private sector-led projects that will be implemented as soon as the country comes out of the COVID-19 state of emergency. 

It must be said that the Recovery Plan did not replace Eswatini’s current Development Plans and Strategies towards achievement of the country’s Development Vision 2022. These include: The Kingdom of Eswatini Strategic Roadmap 2019-2022; 

The National Development Strategy (NDS); and the National Development Plan (NDP) 2019-2022; The Strategy for Sustainable Development and Inclusive Growth (SSDIG), among others. 

Instead, the Post COVID-19 Economic Recovery Plan is a short-term but very high impact economic stimulus that was launched to resuscitate the economy by igniting a large number of productive economic activities as soon as the COVID-19 pandemic subsides. 

In other words, government said it was meant to boost the number of viable and profitable economic activities within 18 months after launch as well as accelerate the implementation and delivery of the National Development Programmes in order for Eswatini to gain significant strides towards achieving Vision 2022 and implantation of the strategic room.

The Post COVID-19 Economic Recovery Plan is necessary in order to generate sufficient momentum for the Eswatini economy to come out of lockdown at a high speed of economic production and productivity.

It will trigger profitable/high impact projects that will in the medium and long-term overcome the social and economic losses that have been imposed by the pandemic since the wake of COVID-19 in January 2020. 

Through this Recovery Plan, the Government of Eswatini intends to increase employment opportunities, expand the tax base, and restore the viability and sustainability of the Eswatini economy. 

Much of the proposed projects will support the government’s goal to reverse the decline in economic activities, will enhance productive sectors of the economy and will create jobs as well as restore the economy into a much higher level of production and productivity.

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