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Comments and Analysis

Keep the Lilangeni at home

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Within the next fortnight, bank automated teller machines (ATMs) across the country will be splashing out hundreds of millions of Emalangeni into the hands of thousands of civil servants, as they receive their much awaited 85 per cent salary review backpay.
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Within the next fortnight, bank automated teller machines (ATMs) across the country will be splashing out hundreds of millions of Emalangeni into the hands of thousands of civil servants, as they receive their much awaited 85 per cent salary review backpay.

For some it will represent the biggest single financial windfall of their working lives.

This is not only a welcome relief for civil servants, but also a much-needed direct injection into the economy. When the country’s largest single employment group suddenly has disposable income, the economic ripple effects are immediate, visible and far-reaching.

The local supermarket sees its stock clear faster; the hardware store sells more cement; the clothing shops experience an unseasonal boom and the public transport sector enjoys a surge in commuters as travel becomes more affordable. The list goes on.

But, as we celebrate this massive cash injection into the pockets of our teachers, nurses and administrators, we must confront a glaring contradiction in how our national capital projects are being handled nowadays.

Government must replicate the domestic economic boost of the salary review by enforcing strict local participation in all major capital works. If a bridge is to be built in Eswatini, the Lilangeni spent on it must circulate within Eswatini. It must pay local salaries, buy local bricks and fuel local trucks.

In Parliament this week, the Public Accounts Committee (PAC) drew a line in the sand on this matter, calling upon Eswatini Railways to ensure that local trucking businesses are given priority and actively benefit from its lucrative supply chain and transport tenders.

Similarly, civic and consumer groups are taking off the kid gloves. The Eswatini Consumer Forum has legally challenged the system, running to the High Court in a bold bid to compel the Central Bank of Eswatini to review its decision to award the tender for its ultra-modern new headquarters to a foreign company.

Enforcing local participation is neither radical nor unusual. It is standard practice for nations that want to transition from developing to developed status. We can scan the policies of many nations and easily find this concept put to good effect for their citizens.

While the broader public service celebrates the conclusion of this decade-long salary wait, some aspects of the fine print of the 2025 Allowance Review Report warrant close, critical scrutiny.

To be fair, many aspects of the report deserve to be commended. Introducing a hardship allowance of 10 per cent for civil servants selflessly serving in remote, rural areas where electricity, clean water and proper sanitation are daily struggles is long overdue.

Similarly, introducing a structured Scarce Skills and Critical Skills Allowance of up to 15 per cent will help the State retain its best medical, engineering and legal minds. Even the E3 000 monthly allowance for emergency personnel undertaking hazardous certified scuba diving duties shows recognition of the life-threatening risks our divers take.

However, we must ask the uncomfortable question regarding the brand-new 10 per cent ‘Central Agency Allowance’ awarded exclusively to civil servants within the central ministries of Finance, Public Service and Economic Planning and Development.

These officials form the Planning and Budgeting Committee (PBC). According to official documents, this allowance is effectively a reward for their work on the national budget and the ‘Budget to the People’ regional outreach initiatives. For an officer in pay grade E2, this translates to an extra E4 232.83 a month, resulting in a staggering six-month backpay windfall of E38 095.50 on top of their standard 85 per cent salary review and a heavily backdated E3 500 housing allowance.

How can government justify a permanent monthly 10 per cent salary increment for these central ministries when the core function of budget formulation and PBC outreach does not happen every single month? If it is for overtime, it should be claimed as irregular overtime through the standard civil service provisions, not institutionalised as a permanent, discriminatory pay slip advantage.

That said, the bigger issue at present is that the money will soon be hitting the bank accounts and the immediate future of our domestic economy rests upon how the custodians use it.

To our hard-working civil servants, this backpay is a hard-fought reward for years of patience through intense inflationary pressures. We can only urge responsible spending. Do not let this windfall slip through your fingers into fleeting luxuries or short-term indulgences across the border.

Use this money to build lasting security for your families and dependants. Pay off high-interest debts, invest in local property or invest in school fees and sustainable local businesses. If our public servants squander it, we will be left with the same old economic stagnation, long after the bank balances have run dry.

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