SWAZILAND EDITORS FORUM BREAKFAST MEETING  16 October 2014

 

 QUESTIONS AND ANSWERS FOR HIS EXCELLENCY THE RT. HONOURABLE PRIME MINISTER DR BARNABAS SIBUSISO

 

DLAMINI

 

Question 1

Has the Justice Minister withdrawn the Estate Policy as per the Prime Minister’s instruction? If not, can His Excellency comment on the implications on national leadership where ministers defy the Prime Minister.

 Answer

The Cabinet decision on the estate policy still stands despite the court order because Government has appealed. We expect the distribution of estates to be conducted in terms of the current legislation. Challenges in any working environment are always possible and dealing with them is a process not an event.

 Question 1.1

Is there any sanction for insubordinate ministers, and is His Excellency considering them?

 Answer

 Refer to answer to question 1

 Question 1.2

Can the Prime Minister give direction on the status quo of the policy he withdrew and declared null and void.

 Answer

 Refer to answer to question 1

Question 1.3

Can the Prime Minister assure the nation that his team of Ministers is fully behind him and speaking in one voice.

Answer

 We meet as Cabinet on a regular basis and Ministers are always encouraged to implement the constitutional provision of collective responsibility.

 Question 2

Can His Excellency comment on the relationship between the Executive arm of Government and the Judiciary. Recent developments around the Administration of Estates cast a spotlight on the working relationship between the administration and the Judiciary. 

 Answer

Relationships in any working environment are bound to encounter challenges from time to time but those should not be a permanent feature. Where and when they exist, there are national structures to resolve them.

 Question 2.1

Why did Government find it necessary to stop payment of allowances for the Judges of the Supreme Court?

Answer

The Notice issued by the Ministry of Finance is a negotiated document. From the date, no allowances were stopped in terms of that Notice.

 Question 3

Swaziland has recorded an improvement in the Index on Good Governance Index. We congratulate His Excellency for this achievement. Can His Excellency indicate how His Majesty’s Government intends to improve on the dimensions that are still identified as challenges?

 

Answer

This is a joint effort of all arms of Government working under the leadership of His Majesty the King. Looking to the future, the Legislature, Judiciary and Executive should continue implementing all processes leading to an improved index of governance.

 Question 4

Can His Excellency update us on progress in Swaziland’s efforts to retain AGOA. Specifically, what progress has been made in meeting the USA benchmarks?

 Answer

 

Government remains fully committed and is working around the clock to ensure that the requirements are met so that we retain the AGOA benefits. As stated in the previous consultation with the Forum, the benchmarks cut across a number of Ministries and sectors and action is being taken.

 Question 4.1

Has government resolved to register TUCOSWA. If not, what are the challenges?

Answer

That gentleman does not exist. Following a Cabinet meeting of 8^th  October, 2014 a decision concerning Federations was reached and communicated to the public by the Minister of Labour and Social Security. That is still the position.

 Question 5

At the State opening of Parliament His Majesty ordered that the Ngwenya to Matsapha link of Swaziland Railways be revived. Can His Excellency update us on progress in rebuilding the railway line.

Answer

Yes, indeed His Majesty issued a command on this matter. A slight correction to your question though is that it was not during the State Opening of Parliament but during the State visit by President Pohamba of Namibia. Immediately thereafter Swaziland Railway undertook a preliminary/exploratory study to analyse how this project can be carried out. The study outputs were engineering drawings and cost estimation to revive the 72 km from Matsapha to Kadake. The study at this stage did not cover the economic viability of operating the line i.e. return on investment. This is still to be conducted as phase 2 of the project to ascertain the utilization of the line once reconstructed. To attain a sustainable rail transport operation to service the Ngwenya mining complex, the railways need an annual tonnage of more than 1.5 million and a mine lifespan of 25 years minimum. Investment costs in the track (railway line) and the rolling stock (locomotives and wagons) is very high.

This project is continuing and the media will be updated as new developments occur.

 Question 5.1

Can His Excellency update us on the progress in the export of iron ore from Ngwenya. Is Salgaocar still in Swaziland. Is the mine still operational. The trucks have disappeared from the roads. What is happening?

 Answer

Salgaocar is a private company hence questions on its operation can be directed to it. However, the company did inform Government that they are experiencing challenges with a decreased global demand for iron ore and this is having an adverse impact on production and sustainability of operations.

In light of the negative global market trend, Salgaocar Swaziland (Pty) Limited applied to the Commissioner of Mines in terms of the Mines and Minerals Act No. 4 of 2011 for a temporary suspension of the production section.

 Question 6

 We congratulate His Majesty’s Government on the final operationalization of the King Mswati lll Airport. Can His Excellency update us of what other airlines are expected to complement SA Airlink, and when are they expected.

 Answer

Government through the Ministry of Public Works and Transport continues to receive interest from a number of airlines to operate to and from the King Mswati III International Airport.  Currently SWACAA is processing applications from two airlines.

 Question 7

Agriculture currently provides employment for 70 per cent in the country. Can His Excellency say what practical measures are in place to ensure that farmers access finance to attain food security and preserve jobs?

 Answer

Agriculture has been the backbone of our economy for many decades and is of huge importance to all Swazis.

 

It is true that Swaziland has enough potential to achieve self-sufficiency in food production, especially of the staple crop, maize if farmers are to take advantage of government’s subsidies in farm inputs. His Majesty’s Government has taken up this challenge and aims to reach a level where the country would also have reserves and be able exportation of the product.

Food security is a compelling ambition in our country. We will continue to build capacity among our farmers to increase yields in our food crops. We have set the target of raising maize production to 140,000MT by 2018 and to 160,000MT by 2022, representing a 60% increase on present levels. This requires a price support scheme for farmers and a local seed production programme, as well as input assistance for farmers.

Swaziland recently signed a loan agreement with India for E353 million to provide subsidised inputs to farmers in regions considered suitable for maize production in the 2013/14 season.

The maize security priority will start out as a project but in the long-term it will become a programme. It entails government’s support to farmers through subsidising the requisite farm inputs, particularly for maize production in the Highveld, Middleveld and Lubombo plateau.

This project is targeting homesteads in high yielding areas with potential to improve maize production and the target is for each homestead to dedicate one hectare to maize.

 

The farming inputs to be provided are not completely free. The farmer is expected to pay 50% of the cost of inputs to be provided.  For this season each targeted farmer will receive 200kg of LAN and 25kg of seeds all amounting to around E2000.00. The farmer will pay E1000.00.  The distribution of these inputs will be starting soon.

 Question 7.1

Can His Excellency provide us with a breakdown showing how much was allocated as loans to promote food security, if possible by source (banks or financial institutions).

Answer

SWAZILAND DEVELOPMENT FINANCE CORPORATION LOAN PORTFOLIO
Sub-Sector			Loan Amount	Number of clients
Agric.Machinery			1,235,260.00	2
Agricultural Supplies			6,127,233.10	6
Tractor Hire			200,000.00	1
Dairy			472,237.68	5
Feedlot			2,908,090.00	5
Food & Fruit processing			102,880.00	1
Forestry			2,533,159.00	11
Fruits & Vegetables			10,457,942.28	50
Heavy Haulage			86,232,900.63	55
Livestock			1,211,558.00	6
Maize production			9,170,352.10	8
Piggery			2,299,887.54	9
Ploughing & Harvesting Services			455,760.00	3
Poultry			2,332,929.20	26
Sugar cane			171,475,263.36	150
Total			297,215,452.89	338

 

Question 8(a)

The maize farming season is already here. The Ministry of Agriculture has been promising, for many years now that it would secure tractors and farm inputs. Can His Excellency indicate when the new tractors will be delivered.

 

Answer

Government is hoping to secure an additional 100 tractors, bringing the total number of tractors available to farmers under the subsidy programme to 250. The country requires about 300 tractors to serve farmers across the regions.  The new tractors are expected to be delivered in the country in the first half of November.

 

While awaiting the delivery of the 100 tractors to be provided through the EXIM Bank loan, Government will be providing 150 tractors which will start the season.  In addition at least 80 privately owned private tractors will be engaged to assist the Government fleet. Government has already started engaging private tractor owners to assist in hiring out their tractors. However, we are cognisant of the fact that their rates are higher and therefore, Government will subsidise farmers in this regard.

 

Question 8 (b)

In the absence of the expected tractors, how many serviceable tractors will Government deploy to the RDAs this season. What are the challenges.

 Answer

Refer to answer provided to question 8(a).

Question 8(c)

Government has also promised to provide free farming inputs. As the farming season is starting, when can we expect these inputs to be delivered.

Answer

For this season each targeted farmer will receive 200kg of LAN and 25kg of seeds all amounting to around E2000.00. The farmer will pay E1000.00.  The distribution of these inputs will be starting soon.

 Question 9

 His Excellency has just returned from the UN General Assembly and the Climate Change Summit which discussed the reduction on use of fossil fuels for renewable Green Energy. Can His Excellency if Government has had this discussion and what options for renewable energy have been selected for Swaziland.

 Answer

Government has been promoting the use of cleaner fuels and renewable energy for over a decade, in an effort to reduce reliance on fossil based fuels. The National Energy Policy (2003) as a result called for the sustainable energy production and use of energy in Swaziland.

Following the adoption of the energy policy in 2003, various options for renewable energy in Swaziland have been promoted and adopted. These are as follows:

 

 

 

1.    Solar energy: The Swaziland Electricity Company is embarking on solar pilot projects at kaLanga, Lavumisa and other locations. The estimated generation potential from solar is 31MW.

 

 

 

2. Biomass energy: Ubombo Sugar is already generating power from bagasse for the company’s own use. The excess power is then sold to the grid. There is potential for further power generation using biomass at RSSC (bagasse) and Montigny (woodwaste).

 

 

 

3. Wind energy: Estimates indicate potential for power generation from wind along the Lubombo plateau. Government is currently developing a wind resource map which will guide investment into wind generation in the country.

 

4. Hydropower: The Swaziland Electricity Company is embarking on feasibility studies for hydropower generation at lower Maguduza and Ngwempisi. The estimated generation potential from all these sites is 132MW.

Government is currently developing an Independent Power Producer policy and Renewable Energy Policy to enable and guide private investment in renewable energy. In addition the Swaziland Energy Regulatory Authority is developing a grid code for electricity infrastructure which will put in place guidelines on how independent producers using renewable energy can access and use electricity infrastructure. The Sustainable Energy for All (SE4ALL) Rapid Gap Analysis and Action Plan emphasises (1) doubling the share of renewable energy in the global energy mix ;(2) doubling the rate of improvements in energy efficiency; (3) ensuring universal access to modern energy services. Government believes that these objectives will be achieved by 2030.

 Question 10

10. The Swaziland Revenue Authority recently indicated a desire to reduce taxes. The Ministry of Finance has also echoed similar sentiments to introduce tax incentives. In the context of government’s fiscal difficulties in the recent past, can His Excellency clarify this?

 Answer

The statement issued by Swaziland Revenue Authority was to the effect that it is desirable to follow trends happening in the international arena where countries reduce income tax rates in order to be competitive and to attract foreign direct investment. To this end corporate tax rates have over the past few years been reducing from 37% to 30 % and to the current 27.5%. It is important to note that while reducing taxes is desirable, doing so must be done gradually with great caution to ensure that the reduction does not result in substantial loss that would ground Government operations.

Government shares the same sentiments expressed by the Swaziland Revenue Authority. In an endeavor to improve the investment climate in the country, the Ministry of Finance has undertaken a study to streamline the existing incentives with a view to simplifying the tax system. 

Question 10.1

Can we expect the tax measures to be implemented in the 2015/16 budget.

 

Answer

Government is currently considering tax policy measures for implementation in the 2015/16 budget. The tax measures under consideration seek to simplify the tax system, improve trade facilitation and improve on compliance. The Ministry of Finance is currently analyzing the various policy options in readiness for announcing in the budget speech.

 Question 11

The Swaziland Bankers Association has expressed concern at the mushrooming of financial services sector companies are not regulated by the Central Bank of Swaziland. Does this suggest the Central Bank is ineffective?

 Answer

The concern by the Swaziland Bankers Association is very valid as the other mushrooming financial services companies do pose a huge systemic risk to the country’s financial sector as their assets are in excess of billions of Emalangeni. However this does not suggest that the Central bank of Swaziland is ineffective. The CBS is solely responsible for monitoring and supervising Banking institutions in the country. Swaziland adopted a twin peak regulatory model where the Financial Services Regulatory Authority (FSRA) is responsible for the Non-Banking Financial institutions. As you will recall the FSRA was established in 2010 and is making strides in improving the country’s regulatory. The FSRA currently regulates the following sectors of the Financial Services:

 

·         Insurance and Retirement Funds

 

·         Cooperatives and Savings Institutions

 

·         Securities and the stock exchange

 

The portfolio of the FSRA does fully cater for all the non-bank financial institution.It is worth noting that the two (2) institutions are complements to each other with a view to provide maximum supervision of the financial sector. The FSRA which is relatively new is working towards amendment of their regulatory legislation with a view to enhance the regulatory environment.

 Question 12

Can His Excellency comment about the conduct of Police that have been involved in incidents of soccer violence during games where their team, Royal Leopards featured. The PLS has also confirmed that complaints about the conduct of police are common when Royal Leopard play.

 Answer

Police officers deployed to provide security in sporting events follow the police code of ethics and are always in uniform. Those participating in sporting activities like soccer are governed by the rules and regulations of that particular sporting event. We have not been made aware of any disciplinary proceedings against the police soccer team, Royal Leopards for misbehavior.

 Question 12.1

 How can government assist the PLS in that regard?

 Answer

Government encourages all sports stakeholders, including the PLS, to cooperate and work in unity for the upliftment of sports in the Kingdom.

 Question 12.2

What is the long term vision for the police involvement in competitive sport. What is the impact on public perception of the dignity of the police uniform, discipline and potential of maintaining impartial policing and lawful order when police in uniform engage in competitive and partisan sports with ordinary members of the public, and naturally also engage in soccer violence?

Answer

Sports in the organization is used, amongst others, as a crime prevention strategy and a vehicle to reach out to more people, hence police participate in a number of sporting codes. Police will continue taking part in sporting events. Violence perpetuated by anyone is not encouraged.

Question 13

The PLS has launched its own Vision 2022 strategy which seeks to take elite football to another level in fronts. What role can government play in assisting them realise their goal?

 Answer

The development of sports holistically including the improvement of elite football can be propelled by Government intervention through fast tracking the enactment of a Sports Act. This shall yield a well regulated and coordinated sports industry that shall generate supplementary funds through levies and licensing fees.

 Question 14

The administration of sports in general has come under severe attack since the disbanding of the Swaziland National Sports Council (SNSC), after government had opted to pull out of the MoU signed between the parties. When will the existing administration vacuum be closed?

Answer

The process of replacing the Sports Council with the organ dictated by the new Policy is near completion. The projection is that the structure shall be fully functional on or before the end of October 2014.

 Question 15

Sports Associations have also opposed certain things in the newly launched National Sports Policy, will government ever engage them to try and iron out any differences that might exist?

 Answer

 The Policy is subject to review as and when deemed necessary like all working documents. Government’s position during dialogue has always been that the Policy must be implemented concurrently with the reviews of any areas requiring such.  

 Question 16

Government has purchased BMW X5’s for Ministers, notwithstanding the state of the economy and rising expenditure. It is meanwhile failing to meet some of its obligations such as payment of school fees. Can the Prime Minister explain to us why was there a rush to purchase these vehicles for Ministers?

 Answer

The cars referred to in the question were purchased in accordance with Government circular No.2 of 2013 after extensive consultations. This is as a result of wide spread complaints and dissatisfaction with circular No.1 of 2010 which required Ministers to purchase their own cars and get allowances. These cars belong to Government and aimed at ensuring Cabinet Ministers are able to fulfil their duties effectively.

 Question 17

The rainy season is almost upon us. Can His Excellency update us on the rollout of the new road treatment programme for strengthening gravel roads. Which roads have been treated and what is the rollout plan for the project.

 Answer

The utilization of Probase Technology to strengthen gravel roads is underway. The contractor will be on site in a weeks’ time (Ezulwini – Lamgabhi road). This is a 6km pilot project and will be complete by end of December 2014. After this pilot project the next phase of this programme will be rolled out next year and subsequent years. It is hoped funds availability will allow for more roads and distances to be covered using this technology.

 

Currently there are 8 roads being planned to be regravelled by outsourced contractors, i.e.:

 

1.    MR 14: Maloma – Nsoko                                        (15km)

 

2.    D29 : Lugaganeni – Kukhanyeni   (20km)

 

3.    D29: Kukhanyeni- Luve   (18km)

 

4.    MR2: Ndzingeni – Magoga       (15km)

 

5.    D43 : Ka- Shewula – Lomahasha MR3 Junction (15km)

 

6.    D44: Dvokodvweni – Malindza (9km)

 

7.   D59: Mhlosheni – Mahlalini (11km)                                

 

8.    Mbekelweni – Sigombeni (15km)

 

 

 

In the meantime, the Ministry of Public Works and Transport through its in-house units will continue with the roads grading programme countrywide.

 Furthermore, His Majesty’s Government is currently carrying out feasibility studies and designs of several gravel roads in the Shiselweni region. The Government intends to use these studies and designs to implement construction projects such that the roads are upgraded from gravel to paved roads. These roads are;     

 

                                   

 

1.      Maloma – Nsoko                               (31km)

 

2.      Maloma - Nsalitje                               (36km)

 

3.      Hlatikhulu – Maloma                           (48km)           

 

4.      Sandleni - Mhlosheni                         (20km)

 

5.      Siphofaneni – Sithobelweni              (28km)

 

6.      Sithobelweni – Maloma                     (23km)

 

7.      St. Phillips – MR14 Junction       (12km)                       

 

8.      Sithobelweni – Hlatikhulu                    (41km)

 

 The construction of these roads will result in an additional 239km of paved roads in the Shiselweni region. This is in addition to other roads in the country that Government is looking at upgrading; including in particular Lugaganeni – Luve, Pigg’s Peak – Bulembu, Piggs Peak – Magoga and all roads leading to Border Posts such as Sandlane, Lundzi, Matsamo among others.

 These developments will not happen overnight. However, it must be emphasized that Government is fully committed to attaining the National Vision 2022 and objectives by investing in development; of which the provision of a paved, safe and reliable road network is of paramount importance.

 Question 17.1

 His Majesty ordered that the road from Pigg’s Peak to Bulembu be tarred. What progress has been made in this project?

Answer

An engineering consultant has been engaged to propel the project towards construction by updating designs that were done some years ago. By end of this financial year (2014/2015) documentation will be ready to invite contractors to tender for construction.