SET THE ECONOMY FREE

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What will it take to emancipate the economy of Eswatini from its below one per cent growth shackles?

Taxing its people to the bone to reduce their spending power or unlocking the full potential of the private sector to raise more business profit tax revenue?
The answer is no brainer and this is why Finance Minister Neal Rijkenberg can blame nobody for the labelling of his budget as highly punitive with most economists predicting a retraction of the economy, much against the mandate to achieve the opposite.

The minister sees otherwise and argues that the incentives he has lined up for the business sector will far outweigh the taxes on the consumer. 
All parties do agree, however, that this country deserves to thrive in a free-market economy that is not stifled of growth by stringent licence requirements that have only helped push the investor preference away from our shores, condemning us to ranking 117 of 190 countries in the ease of doing business. Yesterday, the Ministry of Commerce, Industry and Trade announced changes to the trading licensing order that seek to remove some of the bottlenecks that have long held our economy to ransom.

We trust that this is the first step towards the long awaited deregulation of the business industry. And, hopefully, the dagga industry for medicinal purposes.
Liquor licensing may be part of the beneficiaries of these changes and this can be viewed in a negative light in some quarters. The truth is, operating such businesses comes with great responsibilities and the consumers cannot be exempted from same.

The competition that this move will create can only benefit the consumer in lower prices while pleasing the businesses with higher spending. While at it, the ministry ought to take a deeper look into all the other areas of the industry that are frustrated by unnecessary bureaucracy.
The small business community has welcomed the changes that will unlock some of the potential of the Eswatini economy that is desperate for more profit tax revenue and, most importantly, job opportunities. We now look forward to step, two, three and more of the Finance minister’s promises to set the economy free.

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