Times Of Swaziland: PROPOSAL TO CUT PARASTATALS BY 18

PROPOSAL TO CUT PARASTATALS BY 18
================================================================================
BY TIMES REPORTER on 01/11/2021 08:31:00


MBABANE – Should a proposal on the streamlining of public enterprises be
implemented by government, these will be cut by 18.
Currently, there are 49 public enterprises and the proposal is to bring them
down to 31. Government’s move to cut down the number of public enterprises has
been laid bare in an interim report compiled by the Eswatini Economic Policy
Analysis and Research Centre (ESEPARC), titled ‘An Analysis of Performance of
the State-Owned Enterprises in Eswatini.’ This exercise was sanctioned by
government in a bid to explore options for reducing the subventions paid to the
public enterprises annually.
Consolidation
According to the ESEPARC report, the proposed closure, consolidation and
streamlining of the public enterprises is expected to bring down the total
number of public enterprises from 49 to 31. The proposed reforms have been
identified as necessary to resuscitate the economy and improve the fiscal space
for funding social and economic development. This is one of the ways in which
government intends reducing its spending. Currently, government spends over E2.4
billion in subventions yearly to all the 49 public enterprises.
If the ESEPARC recommendations are anything to go by, the major casualties would
be the employees of Sebenta National Institute, Small Enterprise Development
Company (SEDCO), Eswatini National Industrial Development Company (ENIDC) and
Eswatini National Housing Board (ENHB). ESEPARC has recommended that these
companies should be totally closed down and their assets sold. The report states
that Sebenta National Institute was now deviating from its core mandate of
improving adult literacy, but now tapping into technical and vocational
education and training (TVET) skills development.
“Government must close the project once the current group graduates,” reads
the report. Government has been advised to repurpose the institution for an
establishment of a one non-formal education institution to co-ordinate the
skills development centres such as MITC, Mpaka and Nhlangano vocational centres.
 The ESEPARC report further recommends that government should dissolve the
Eswatini National Housing Board (ENHB).
“Government can repurpose the entity by transforming it into a leaner unit
under the Ministry of Public Works and Transport for leasing civil servants
houses and the maintenance of government houses and buildings. There is need to
rationalise the mandate, conduct an inventory of assets, sell some of its
assets, explore the Sectional Title Act and transform it to focus on a new
mandate if government finds it valuable,” the report reads in part.
Regarding SEDCO, government has been advised to carry out an inventory of
assets, consolidate the functions of the company so that it becomes a subsidiary
of FINCORP. It is envisaged that FINCORP will establish a fully-fledged MSME
business clinic that can support the generation and operations of viable MSMEs
in Eswatini.
Recommendation
Also earmarked for business closure is ENIDC. The recommendation is that
government should finalise any outstanding investment deals and dissolve the
institution. ESEPARC’s view is that government can ensure the manufacturing
sector investment through IDCE, FINCORP and EswatiniBank. Other public
enterprises that could cease being stand-alone are the National Agricultural
Marketing Board (NAMBoard), National Maize Corporation (NMC) and Cotton Board.
It has been suggested that these companies should be consolidated into one
entity under Eswatini Water and Agricultural Development Enterprise (ESWADE).
Regarding Eswatini Dairy Board, the report proposes the establishment of a new
livestock development enterprise under it.
Another proposal is that a new Tourism Development and Promotion Enterprise be
formed to be in charge of the Eswatini National Trust Commission (ENTC),
Eswatini Tourism Authority (ETA) and Eswatini National Council of Arts and
Culture (ENCAC). The opinion here is that government should use the ENTC
facilities to house the new enterprise to spearhead swift commercialisation of
the cultural villages and operationalisation of the ICC&FISH and Pigg’s Peak
Hotel.
“Use the subvention to ENTC and ETA to restructure the two entities in order
to establish the new enterprise,” reads the report.
Advocate
Meanwhile, the Ministry of Sports, Culture and Youth Affairs has been called
upon to continue advocating for youth, sports and culture issues. The report
calls for the ministry to strengthen the co-ordination of youth issues and
support resource mobilisation to encourage investment in youth programmes. It
has been further proposed that the Eswatini National Youth Council should become
the anchor of public enterprise through which the Ministry of Sports, Culture
and Youth Affairs may implement its mandate. “The main function is to
sensitise and co-ordinate Eswatini’s youth and ensure that it channels them to
the relevant private and public institutions for access to services.”
The report further suggests that the Youth Council can house the Youth Fund,
through which youth entrepreneurship and MSMEs development can be supported.
“Likewise, the Eswatini Sports and Recreation Council (ESRC) can be part of
the National Youth Council, but become a department focusing on the development
of sports and recreational activities in Eswatini. The Eswatini National Council
of Arts can be consolidated under Eswatini Tourism Development Enterprise so
that it becomes a specialised department focusing on the development of arts and
culture in Eswatini.”