BY THE RT HONOURABLE PRIME MINISTER,
DR B.S.S. DLAMINI
Thursday 22 December 2011
Sanibonani bekunene, Good day everybody.
Christmas 2011 is nearly with us and I am very pleased, on behalf of His Majesty’s Government, to have the opportunity to say a few words to the Swazi Nation as we approach the festive season.
Christmas is the time when we commemorate, and of course celebrate, the birth of Our Lord Jesus Christ, that took place more than two thousand years ago. It was a humble birth in extremely difficult circumstances but one which gave rise to a life of immense impact on the world, a life sacrificed cruelly at a young age to save the rest of mankind.
While tolerant of all religions that preach peace and goodwill, Swaziland is a strongly Christian country and therefore Christmas is a time of great importance and significance to us. It is not only an opportunity to remember and rejoice in the birth of our Saviour but also one for spending valuable time with family and friends, exchanging gifts and sharing food.
But, in keeping with the true Christian spirit, the festive season should also be a time for sympathy and assistance for those less fortunate than ourselves. There are people in our society who, whether through illness, poverty or loneliness, will face a daunting time. Let us seek every way of helping those people in whatever manner necessary, whether in word or deed. Giving which comes from the heart is as rewarding to the giver as to the receiver.
And let us make sure our celebrations are conducted sensibly. If you have to drink alcohol just make sure that you keep away from driving on our roads. The Police, already increasingly vigilant in their road checks, have been instructed to be tighter than ever. Their mission is to help to prevent tragedy on our roads and they will do so without fear or favour. The warning is clear!
All of the essential services will allocate officers for duty during the festive season. We are most grateful for the sacrifice that will be made by those individuals and their families.
Within a few days of Christmas, God willing, we will enter a new year - 2012. Before looking ahead, let us reflect briefly on the past year.
It has been a challenging one for Government owing mainly to the stringent fiscal position. By now, most people will understand the underlying reason for the cash flow challenge faced by Government and which, in turn, has impacted adversely on the parastatal and private sectors. To experience a sudden, and entirely unavoidable, 60% fall in public sector income – in our case the revenue from the Southern African Customs Union (SACU) - was not only unprecedented in our own recent history but it is hard to find a similar occurrence elsewhere in the world in peacetime.
The precipitate fall in the size of the SACU payment to Swaziland was the result of a smaller total customs Pool caused by the global economic recession and the refund to SACU that had to be made by Swaziland in respect of earlier overpayments by SACU.
At the annual level of receipts from SACU until 2009, Government had been able to embrace new initiatives such as free primary education and support to orphans and vulnerable children, as well as regional development funding and substantial infrastructure projects. There had also been an expansion of the public service payroll in the middle part of the last decade. The huge drop in Government income made these, and many other programmes, difficult to sustain.
The majority of our people and organizations have an attitude consistent with the saying – when the going gets tough, the tough get going. They have supported Government and been patient about the slowness of payment, reassured that they will all be paid in due course. This considerable degree of cooperation has helped to ease the pressure on Government.
As we look ahead to 2012, Government will continue the steps that it has been taking towards achieving fiscal stability and economic growth. The increased payment from SACU which is expected to amount to E7 billion for 2012/13, and received in quarterly instalments, will be used wisely. The aim is to restore fiscal stability and support economic growth. That will mean settling arrears, and spending on the important capital projects that have had to be deferred owing to lack of funds.
There will also be priority programmes in health and education, such as the national fight against HIV and AIDS, that will face new financial challenges. Government will ensure that the existing services, especially to those living with HIV, will be sustained.
But the E7 billion is a temporary respite. SACU payments tend to vary across a considerable range and there is no indication that that level will be sustained. Indeed, even getting to that first quarterly SACU payment in April will require bridging finance which Government is currently negotiating to secure.
From a fiscal perspective we have to, above all, accelerate the growth of domestic revenue to replace this highly vulnerable and unpredictable share of SACU customs receipts that has hitherto been the dominant component of our public sector income. This we will do by strengthening our revenue collection system, already in progress under the newly established Swaziland Revenue Authority. That, for most countries, of the world is the main source of revenue and that is why they take the subject very seriously with severe penalties for tax evasion.
Furthermore, we have a Government wage bill that is far too high by any measurement – whether as a percentage of GDP or of total recurrent expenditure. We will continue to plan for the containment of staff numbers and wage increases, as well as for agreed measures for rightsizing the Public Service.
As an Administration we shall continue to be open to advice from our development partners, especially the International Monetary Fund, World Bank, African Development Bank, European Union and United States Government..
In the medium to long term it is economic growth that will bring prosperity to our country. That, quite simply, will be a question of increasing output of goods and services and, wherever possible, adding value to primary products and getting them into the global supply chain towards bigger markets. Success in this area requires two critical components – Government making the business environment conducive to growth and our people responding with vigour and commitment.
I can only speak for the former but I can provide the assurance that Government, through the Economic Recovery Strategy and the re-vamped Investor Roadmap will apply our limited resources to meeting the needs of big and small scale investors alike.
Government accepts the responsibility to provide a continuously improved environment in order to attract foreign direct investment, in particular where it brings capital, special skills to the country, and access to the global marketplace.
And at small, medium and micro-scale level, across the spectrum from small-scale intensive crop-growing to rural fruit-processing to handcraft production, Government will focus on opportunity creation, skills development and improving access to markets and affordable finance. My Cabinet will monitor this area of work closely in the coming months with particular attention to the number of new jobs created. In return we ask for collaboration, drive and determination from our people.
Much depends on the confidence that the general public has in the present Administration and that, I believe, is directly linked to its confidence in our ability to root out corruption. That commitment is there in Government. The process, of allegation to investigation to resolution, has to be followed correctly and thoroughly to ensure that justice prevails. If the process appears slow that is because the details are complex and the steps time-consuming.
Furthermore, it is evident that the Anti-Corruption Commission lacks the capacity to deal with complex investigations and Government will obtain the Commission’s cooperation in strategies to increase capacity and skills in the coming months.
All the reported cases will be investigated to resolution, the programme coordinated by the Anti-Corruption Task Force. Nothing will be brushed under the carpet. I believe that recent events demonstrate Government’s commitment to bring to account all alleged offences, whether within or outside the Administration.
Despite the challenges of the past year one very clear signal has emerged – that the Kingdom of Swaziland prefers peace to disorder, consensus to dictate. We have recently enjoyed a further and highly successful iNcwala ceremony which is an integral part of the Swazi culture and tradition – a renewal ceremony for our Monarchy and our King. It serves also to strengthen our strong sense of national identity and desire for peace and unity. Let us use that as our own springboard into hard work and increased output to take Swaziland to a new level of economic activity.
As we prepare for the festive season, let us all at the same time conceive New Year resolutions that involve each of us contributing in our respective way to the growth of our economy and, through that, to a higher standard of living for everyone.
On behalf of His Majesty’s Government, I wish His Majesty the King and iNgwenyama, Her Majesty iNdlovukazi Mhlekazi, and the whole Nation a very merry Christmas and a healthy, happy and prosperous New Year. At the same time we all wish Their Majesties good health and a long life, and we give thanks for the guidance that we have received over the past year.
Thank you. Siyabonga bekunene.