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Eswatini on an austerity drive

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The Kingdom of  Eswatini, a landlocked country in Southern Africa  has submitted recommendations on how politicians are remunerated. The recommendations of the task force are something the politicians never would have liked. The recommendations include   taking away many privileges and facilities including first-class travel for ministers except for Prime Minister Ambrose Mandvulo Dlamini and his deputy.

The recommendations awaiting Royal approval, also call for housing allowances to be reduced to 12.5% of annual salaries from 25%.  Also, there is a cut in the entertainment allowances proposed. This would be reduced by 7%. Of late, the kingdom has been facing an unprecedented economic crisis due to the drastic drop in inflow of foreign investments and increased wage bill. It is expected that the austerity measures would be implemented across the cross-section of civil service and other layers of the government and is  set to continue as it faces slowing rates of foreign investments and a fast-growing wage bill.

Eswatini is one of the smallest nations in Africa. With a per capita GDP of US$ 9714, the country is classified as a lower-middle-income country. It is also a member of the Southern African Customs Union  (SACU) and the Common Market of Eastern and Southern Africa  (COMESA). South Africa is its main trading partner and its currency is aligned with rand. It also trades with the US and European Union.

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