Times Of Swaziland: 7.9% ECONOMIC GROWTH FOR ESWATINI

7.9% ECONOMIC GROWTH FOR ESWATINI
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Stanley Khumalo on 02/09/2022 08:56:00


MANZINI – The economy of the country is bolting towards recovery as it grew by
7.9 per cent in 2021, says the Central Statistical Office (CSO).
The growth of the economy is calculated through the gross domestic product
(GDP), which is a measure of the size and health of an economy. According to the
bank of England, it is the total value of goods and services produced over a
specific time period. The report by the CSO stated that the GDP for the year
2021 stood at E70.123 billion. It stated that this was a growth of 7.9 per cent
compared to a decline of 1.6 per cent realised in 2020. In fact, when comparing
the growth of the economy in the country since 2011, it is the highest in a
decade. A growth of the economy recorded above 2.7 per cent was in 2012 wherein
it expanded by 5.4 per cent while in 2013 it was 3.9 per cent. The other years
leading to 2019 were recorded on average of two per cent.
It is worth noting that trade was severely compromised in 2020 following the
advent of the coronavirus pandemic which resulted in constant restrictions to
travel. Subsequent to these restrictions, the economy was open as movement of
goods and people was permitted. Due to this, the CSO reported that in 2021
growth was recorded in the secondary sector which grew by 15.4 per cent while
the tertiary sector expanded by 4.1 per cent.
Manufacturing, according to the report, contributed the largest share to the
growth of the economy at 26.7 per cent. This industry is under the primary
sector which consists of electricity supply, water and sewage, water collection
and construction. The second best performer in the economy was the wholesale and
retail industry which recorded 14.4 per cent growth, which was 0.01 per cent
higher than the expansion recorded in 2020. Also, agriculture and forestry
recorded a growth of 8.1 per cent which was the same rate of growth recorded in
2020.
On the other hand, public administration and defence recorded eight per cent in
the past year, which was a decline from the 10 per cent growth achieved in 2020.
The least contributing industries were mining and quarrying, with 0.2 per cent
last year, while it had achieved the same growth even in 2020. Arts,
entertainment and recreation also recorded a 0.1 per cent in growth as there
were constant restrictions in the industry due to the COVID-19 pandemic which
rendered the industry dormant. In light of this, the Minister of Commerce,
Industry and Trade, Manqoba Khumalo said there was definite growth in the
private sector. He said they had seen growth and reinvestment in existing firms.
“Some of the firms have secured new markets, particularly during the COVID-19
period. Secondly, we have a few new companies that have set up or are setting up
as we speak and this has expanded the economy in the manufacturing sector,” he
explained. Khumalo said the retail industry was also growing in leaps and bounds
and as more emaSwati chose to buy goods locally against internationally, it had
helped the economy. The minister said this was evidenced by the fast growth of
retail malls and outlets that had been seen in the last two years. He said the
growth symbolised that consumer spending had increased significantly.
Highest
The minister said this when he was sought for comment on what could have
attributed to the highest growth of the GDP in a decade; more so because in 2020
the country recorded a -1.6 per cent growth. He was also asked what policies
could the nation anticipate from the ministry to ensure that growth continued in
order to ensure that the country did not lose this momentum and his ministry’s
overall target as it was responsible for luring the  business community into the
kingdom. Khumalo said: “I do not believe we will lose this momentum. Actually,
the pipeline of projects in the economic recovery plan is still very strong, and
many private sector players are delivering on their commitments. The mining
sector will be a very significant engine of growth in the next two years, and
will hopefully match the manufacturing industry soon.”
Also, he said the Mkhondvo - Ngwavuma Water Augmentation Project would unleash
sustained economic activities in the next five years. This, he said, would see
Eswatini having a more balanced economy. The minister said the overall objective
was to continue driving a private sector-led and export driven economy. He said
as long as that was done, the country would record GDP growth in the region of 5
-10 per cent each year consistently.
This result, Khumalo said, showed that Eswatini remained a preferred investment
destination for both growth and new investment projects. He said: “I’m very
happy about this result, but it is a result of our strategic road map and
supported by the post COVID-19 Recovery Plan.”
On the other hand, Chief Executive Officer at Business Eswatini Nathi Dlamini
said: “If the GDP figure you’ve quoted me is accurate, I’m very elated.”
He said it was good news to everyone who called this country home. Dlamini said
despite being pummeled from all directions, the Eswatini economy seemed to be
more resilient than it had always been given credit for. “Thanks to the
business community and its workers who keep on pushing the envelope despite the
odds. I wouldn’t leave out government, especially the Ministries of Commerce
and Finance, for the role they have been, and are, playing to make things
happen,” Dlamini said.