Saturday, 28 January 2012

Swaziland crisis eases

The crisis in Swaziland caused by a dramatic drop in income a couple of years ago appears set to ease as Swaziland looks set to receive around R7 billion from SACU in the 2012/2013 financial year. SACU revenue share is a major part of the Swazi government's income - this R7 billion is equivalent to roughly half of the country's national budget. The funds will allow the government to pay back the R1.4 billion borrowed from parastatals and private companies in late 2011.

Over the last few months, the financial crisis has shut down schools, brought the civil service to the brink of collapse and precipitated medical shortages that left thousands and thousands of people without access to ARVs. Pensions were also suspended and payments for orphans failed to arrive. This income should ease the situation and will hopefully prevent more unnecessary deaths and disruptions. Great for the region, also, that SACU is able to pay out this kind of amount again.

Note: Source article from Southern Africa Report highlights the dissatisfaction of pro-democracy activists who argue that this payment will prop up the king's rule for longer.

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