AGRI BUDGET 2ND LOWEST IN 5YRS

MBABANE - The 2021/22 budget allocation does not only fail to conform to the Maputo Declaration but it is one of the lowest in years.

The Maputo Declaration was launched in 2003 as a response to the stagnation of African agriculture. The signatories agreed that 10 per cent of public expenditure should be spent on agriculture in an effort to increase agricultural productivity. In the recent budget speech delivered by Minister of Finance Neal Rijkenberg, government allocated an amount of E1.3 billion for the Ministry of Agriculture. This figure is about 5.40 per cent of the total expenditure of about E24 billion. In the previous financial year (2020/21), government had given E1.6 billion to the ministry. In 2019/20 and the previous year, the allocations were E1.7 billion and E1.4 billion, respectively.

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The least budget in the last five years was witnessed back in 2017 when only E741 million was allocated. The reduced budget is a blow, as the agriculture sector has demonstrated significant resilience by displaying a 9.5 per cent contribution to the country’s gross domestic product (GDP). This was an improvement from the 8.5 per cent witnessed in 2019. In his budget speech, Minister Rijkenberg said the sector was forecasted to demonstrate net positive growth in the medium term. During the financial year 2020/21, Government had prioritised the provision of efficient agriculture services to the farming community, investment in targeted infrastructure for agriculture and ensuring continued trade for agricultural products to guarantee food security for the nation.

During the past year, Eswatini produced approximately 86 thousand metric tonnes of white maize. As of September 2020, beef production was at approximately five thousand metric tonnes. Vegetable production was over five thousand metric tonnes. The allocated funds in this year’s budget will be utilised in the construction of secondary distribution canals and Lower Usuthu Smallholder Irrigation Project (LUSIP)  II infield irrigation development where the target is to irrigate an area covering 5 200 hectares in the lowveld. Construction of at least 20 small and medium sized earth dams will also be carried out through this budget. This budget will also contribute to speeding up the designs and contractual preparations for construction of the Mkhondvo Ngwavuma water augmentation project.

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