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1. Assessment of the Economic Costs of Electrical Power Outages in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
05-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Electricity access has improved significantly since introduction of the National Energy Policy of 2003. However, challenges in electricity supply still exist due to the frequency of interruptions, which has resulted in harsh penalties and costs to the economy. In 2016, power outages cost Swaziland E700 million in nominal monetary terms, representing 1.67% of Swaziland’s Gross Domestic Product (GDP). If not addressed, the problems with the electricity sector will severely undermine the government’s effort to improve the development of the country. In essence, the benefits of increased access to the electricity grid will not be realised if power supply is as unreliable as it currently is. Considerable effort should be made to ensure that the country’s electricity supply system is stable and uninterrupted. Hence, in order to achieve this, there is need for policy attention towards improving the energy sector through investments in electricity generation using renewable energy sources, expediting the promotion of decentralised electricity generation to vulnerable areas, and setting stringent standards for the generation and distribution of electricity.
Topic:
Economics, Energy Policy, Infrastructure, and Electricity
Political Geography:
Africa and Swaziland

2. Quantifying the Size and Development of the Shadow Economy in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
03-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The size of the shadow economy has been declining at a slow rate over the past 16 years in Swaziland. The size of the shadow economy was found to be 37.4 % in 2016. This was equivalent to E20.5 billion of the Gross Domestic Product (GDP) in 2016. The key drives of the shadow economy in Swaziland were found to be the tax burden (direct and indirect taxation), self-employment, the importance of the agricultural sector and the institutional quality of governance institutions. For the country to fast tract its developmental agenda (Vision 2022), it is important for the country to enact policies that will harness and transition the shadow economy into the mainstream economy by targeting the drivers of the shadow economy locally.
Topic:
Development, Economics, Governance, and GDP
Political Geography:
Africa and Swaziland

3. The Socio-Economic Impacts of the 2015/16 EL Niño Induced Drought in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The 2015/16 El Niño drought proved to be the worst drought Swaziland has experienced since 1992. In total nominal monetary terms, the drought cost Swaziland minimally E3.843 billion, representing a 7.01% of Swaziland’s Gross Domestic Product (GDP) in 2016 or 18.58% of government expenditure in 2016. Despite the significant drought losses, the country has on paper a solid Disaster Risk Management (DRM) Policy (2010). However, even with extensive experience from past droughts in 2009/10, 2007, 2001, and 1992, the country is still struggling to become drought proof. The reason Swaziland is so affected by drought is that the country’s economic backbone rests on agriculture. The inherent vulnerability to drought is that the food production system in the country is still highly dependent on direct rainfall. Due to chronic drought-like conditions in the Shiselweni and Lubombo regions, households in these regions are now discouraged from participating in agriculture. To illustrate, an assessment of agricultural assets in households reveals that household participation in agriculture is less than 30%, with a measly national average of 25.3%. As a result, the country is now too dependent on the international, basically South African, market for its basic food needs. The implication is that as droughts become more frequent, their impact on the country will be detrimental to the economy, particularly on rural livelihoods.
Topic:
Economics, Environment, Natural Disasters, Socioeconomics, and Drought
Political Geography:
Africa and Swaziland

4. The Economic Benefits of Technical and Vocational Education and Training (TVET) in the Kingdom of Swaziland: A case of the National Handicraft Training Centre (NHTC)

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Technical and Vocational Education and Training (TVET) in Swaziland is key for employment and self-employment opportunities which result in economic growth. TVET has proven to be an educational pathway that can be used to significantly reduce the unemployment rate by 2022. TVET graduates acquire skills that empower them to be immediately absorbed by the labour market and/or be self-employed. About 73.1% of the graduates are in productive employment after graduating from NHTC; with 47.6% formally employed, 25.5% self-employed, while 26.2% were unemployed in the period 1995 – 2015. The Benefit-Cost Ratio of NHTC, based on the Government of Swaziland and the Republic of China on Taiwan’s investment in NHTC, is 1:4.66. This means for every E1 invested in NHTC, the economy realises E4.66 through the income generating activities of graduates. The positive return on investment in NHTC indicates that if Government can increase funding to TVET institutions, the economic return can make significant contributions to skills development and GDP growth in the country.
Topic:
Economics, Education, Labor Issues, and Employment
Political Geography:
Africa and Swaziland

5. Capacity profiling and needs assessment of the public service of Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Governments are constantly under pressure to improve public sector performance and at the same time restrain expenditure growth. Public sector organisations are responsible for providing the necessary public goods and services to the citizens, hence the administration of the public service is traditionally grounded in the achievement of efficiency in the work of its departments in pursuance of goals related to service provision (Manzoor 2014). Some scholars argue that the efficiency of the public sector is key to delivering a ‘smarter state’ capable not only of delivering more for less, but better public services, which requires an evidence-based understanding of what the public service has been able to deliver so far, the drivers of these outcomes and the different options available (Hawkins et al. 2016). Swaziland’s private sector, non-governmental organisations, and the public feel that while the country’s public service is evolving, it is still grappling with finding an ideal management style that will ensure better service provision, but in the process of evolution, service delivery of public goods remains compromised, hence customer satisfaction is low. So what can be done to improve the efficiency and performance of the public service? Analysts argue that implementing e-governance has brought unprecedented efficiencies in the work of government to serve citizens (Manzoor 2014). To achieve this and more, governments are widening their base of development partners who can assist in capacity building for civil servants, and funding for the implementation of its programmes.
Topic:
Development, Governance, Public Sector, and Public Service
Political Geography:
Africa and Swaziland

6. Quantifying a living wage in Swaziland: A case of the handicraft sector

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The Swaziland MDG Report (MDGR, 2015) documents that to improve wellbeing in Swaziland beyond 2015 requires the country to accelerate efforts geared toward creating lucrative employment and decent work for all, including women, the youth, and people living with disabilities. This is pertinent for the Kingdom of Swaziland given that 28.1% of the economically active population was unemployed in 2014 (ILFS, 2014). Others have argued that the unemployment rate is higher in rural areas, where the actual figure is probably more than 40% (Manyatsi et al., 2013). The handicraft sector has the potential to provide mass employment opportunities. However, undermining handicraft in Swaziland is a lack of appreciation of the potential this sector has toward changing the economic status and livelihoods of the people (Bam, 2014). As a result, the sector is notorious for paying low wages that do not support a decent standard of living, particularly in rural areas. Poor pay or low wages can have adverse impacts on economic growth by depressing per capita consumption.
Topic:
Labor Issues, Employment, Standard of Living, and Wages
Political Geography:
Africa and Swaziland

7. Predictors of food insecurity in Swaziland: Lessons from the 2015/16 El Niño induced drought

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The National Food Security Policy (NFSP) 2005 stresses recurrent droughts and the high incidence of HIV/AIDS in Swaziland as the major contributing factors towards adverse food insecurity in the country. Consistently, when droughts hit the country, food production plummets and pushes a significant portion of the population into food insecurity. An investigation of the predictors of food insecurity among households during the 2015/16 drought provides information on the households that are prone to drought induced food insecurity, so as to inform food security risk mapping in the country. The assessment found that the most significant factors associated with increased food insecurity odds at the household level include households in the Lubombo region which is the poorest among the four regions. Households that do not have toilet facilities in their homesteads, those that depend on rainwater and boreholes as their main source of drinking water, as well as households that use lanterns or oil lamps as their main source of lighting are more likely to be food insecure. Another important factor that can be a good predictor of increased food insecurity during a drought is the ownership and use of tractors and hoes within households that depend on crop production as one of the main sources of food.
Topic:
Environment, Natural Disasters, Food, and Food Security
Political Geography:
Africa and Swaziland

8. Swaziland Research and Development Statistics: Findings from the 2015/16 Swaziland National Research and Development Survey

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2019
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
For many years, data on Science, Technology, and Research and Development (R&D) indicators in Swaziland have been missing. Not surprisingly, the country has been unable to monitor its progress and performance on scientific and technological development. This is notwithstanding that the Kingdom of Swaziland’s revised National Development Strategy (NDS) (2016) commits the country to drive social and economic development by intensifying efforts and investment into research, innovation, science, and technology. The ultimate goal is to use R&D to inspire large gains in productivity, especially in the agricultural and manufacturing sector (GoS, 2016). The importance attached to R&D in Swaziland is demonstrated in the country’s investment into a science and technology park, which houses both a biotechnology and an innovation park. Around the world, science, technology, and innovation (STI) is acknowledged as a driver of social and economic development and more recently, as a means to attain the sustainable development goals (SDGs). STI indicators are important as a starting point for monitoring progress on scientific and technological development and for formulating responsive STI policies.
Topic:
Civil Society, Development, Research, and Social Order
Political Geography:
Africa and Swaziland

9. Sexual Harassment in the Workplace in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
01-2018
Content Type:
Special Report
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
This report provides detailed findings of an investigation into workplace sexual harassment focusing on the private sector and non-government organisations (NGOs) in Swaziland. The analysis provides benchmark information on the nature and extent of workplace sexual harassment in a bid to establish suitable interventions (policies, systems and programmes) that will facilitate behavioural changes for the protection and mitigation against all forms of workplace sexual harassment.
Topic:
Labor Issues, Sexual Violence, Work Culture, and Gender
Political Geography:
Africa and Swaziland

10. Industry Labor Force Skills Gap Investigation

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
01-2018
Content Type:
Special Report
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Sluggish economic growth coupled with high unemployment rates have become synonymous with the economy in Swaziland. In particular, youth unemployment, which stood at 51.6% in 2014, the last year for which reliable data is available, has skyrocketed amidst limited opportunities for young people in the economy. Put differently, these figures suggest that one in every two young people in Swaziland is unemployed. Moreover, the ‘youth bulge’ – a situation in which the population share of the 15-24 year-olds exceeds 20% and the share of the 0-14 year-olds (often also referred to as the "children bulge" and a good predictor of future youth bulges) is higher than 30% –, means the country’s population is also growing faster than jobs are created. This calls for urgent strategies and public policies that can transform the economy, reignite economic growth, and capitalise on Swaziland’s youthful population. Technical Vocational Education and Training (TVET) has emerged as a credible route for the production of the necessary skills and knowledge that will feed directly into industry in a bid to enhance the employability of young people and create employment. Indeed, the talent, know-how, skills and capabilities of human capital can provide the relevant stock of competencies needed to increase efficiency and overall productivity in industry. However, at the present moment, there is very little information on whether or not the skills produced by the TVET sector in Swaziland are meeting the needs of industry. Conceivably, this has compromised efforts aimed at increasing the contribution of TVET in human capital development in Swaziland. In an attempt to make TVET education more relevant in Swaziland, His Majesty’s government has partnered with the government of the Republic of China on Taiwan, which has agreed to provide assistance in upgrading technical skills in Swaziland with a focus on the automotive, electrical engineering, and information and communications technology (ICT) industries. This Report presents the results of a TVET-industry skills gap analysis in the automotive, electrical engineering, and information and communications technology (ICT) industries in Swaziland. It investigates the relevancy of the skills supplied by the TVET institutions against the skills demanded/required by the three industries considered in this study. Closing the skills gap in the technical and vocational labour force could directly impact the productivity of local companies, create new enterprises, and enable the economy to grow through both formal and informal employment. The study focuses on four objectives: (i) to ascertain the development trends in each of the three industries and specify the existing challenges and opportunities; (ii) to assess the capacity and quality of Swaziland’s TVET system and its position to serve the skills required by industry; (iii) to identify the gaps between the skills supplied by TVET training institutions in Swaziland, (particularly, SCOT, and Gwamile VOCTIM) versus the skills demanded by the automotive, electrical, and ICT industries; and (iv) to recommend strategies for reducing the labour force skills gap within the three focus industries.
Topic:
Economics, Education, Employment, Economic Growth, Training, Vocational Training, and Industry
Political Geography:
Africa and Swaziland

11. The State of the National System of Innovation in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
03-2018
Content Type:
Policy Brief
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Swaziland, in the National Development Strategy (NDS), aspires to achieve development through investments in science, technology, and innovation (STI). However, using innovation to uplift the country from poverty and tackle economic growth requires investment in research and experimental development (R&D), human capital development, and the establishment of relevant institutions and governing bodies to direct scientific and technological development which are currently missing. Due to low investments in innovation and R&D, the lack of funding sources, absence of a national STI strategy and R&D agenda, and low collaboration between institutions, the country is struggling to propel STI-driven development. As a result, Swaziland is largely a consumption-based economy, with high imports and low exports, and the domestic industry is underdeveloped. The implication is that as economies grow and become more competitive, Swaziland will continue to remain behind. Hence, to use STI to drive social and economic development the country needs to affirm this concession by developing a national STI strategy. Establishing a Ministry of Science, Technology, and Innovation would enhance the coordination of STI activities and manage the funding and implementation of STI policies.
Topic:
Development, Science and Technology, Economic Growth, and Innovation
Political Geography:
Africa and Swaziland

12. The Socio-Economic Impacts of the 2015/16 EL Niño Induced Drought in Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
06-2017
Content Type:
Special Report
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
This report provides detailed findings of an investigation into the socioeconomic impacts of the 2015/16 El Niño drought in Swaziland. It records the direct and indirect effects of the drought on the economy of Swaziland and documents how it has affected households, businesses, and the environment. The economic evaluation of drought impacts is essential in order to define efficient and sustainable management and mitigation strategies. The study documents the effects of the 2015/16 drought on the economy of Swaziland, extrapolates how it may have affected the implementation of the country’s developmental mandate, and deduces the suitability of the country’s disaster risk management policy to respond to natural disasters like droughts. The study concludes by quantifying the economic costs and overall effects, in monetary terms, of the drought to Swaziland.
Topic:
Natural Disasters, Socioeconomics, and Drought
Political Geography:
Africa and Swaziland

13. 2016 Public Service Customer Satisfaction Parid Assessment Report for the Kingdom of Swaziland

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
09-2017
Content Type:
Special Report
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The key objective of providing government services to the citizens is to improve their quality of life and therefore citizens are better positioned to provide feedback on whether government services satisfied their needs. The Ministry of Tinkhundla Administration and Development (MTAD) is an institution established in 2009, mandated with the responsibility of improving efficiency and effectiveness of government service delivery at regional level in Swaziland. The Decentralization Policy of 2006 provides for directives to government and all its agencies to ensure that people access services closer to where they live and that administrative institutions at community level have the requisite capacity to deliver such services, woven together by a combination of cohesive Swazi traditional systems and contemporary modern administrative and governance systems. Against this background, it was deemed important for MTAD to undertake the 2016 Public Service Customer Satisfaction Survey in order to provide a tool for assessing government Ministries that provide public services to citizens. Measuring the satisfaction levels of public service customers is a crucial tool in the determination of the outcome and impact of public service delivery programmes. The systematic customer satisfaction survey was conducted to assess opinions and perceptions of citizens on selected services offered by the government. This survey demonstrated government’s commitment to improving public services through the engagement of citizens at all levels of service delivery.
Topic:
Development, Governance, Public Opinion, and Leadership
Political Geography:
Africa and Swaziland

14. Quantifying the Living Wage in Swaziland: A Case of the Handicraft Sector

Author:
Eswatini Economic Policy Analysis and Research Centre
Publication Date:
11-2016
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
This study quantifies a living wage for rural and urban workers in the handicraft sector in Swaziland. It also compares the resultant living wage in between the two geographical areas. The study is interested in ascertaining the living wage in the handicraft sector because (1) the sector provides jobs to a significant proportion in the rural sector, and (2) paying decent salaries through the living wage has emerged as part of the solution to make rural jobs bankable and alter the employment landscape. The study finds that the estimated monthly living wage in Swaziland ranges from E1,241.66 to E6,839.96 and E2,345 to E8,208.71 for rural and urban handicraft workers, respectively. Currently, up to 70.9% of all employees are remunerated less than E2,000 which is 35% lower than the estimated living wage of E3,076.29 for a rural worker with a household size of three or 61.2% lower than the estimated living wage of E5,148.69 for an urban worker with a similar household size. Given these discrepancies, the study proposes E3,076.29 as the appropriate living wage for both rural and urban workers in Swaziland. It is recommended that measures and guidelines to enforce and strengthen the implementation of the estimated living wage amongst all regulated handicraft enterprises in Swaziland be developed. Handicraft enterprises are encouraged to consider gradually introducing the urban living wage over time.
Topic:
Labor Issues, Inequality, Urban, Rural, and Wages
Political Geography:
Africa and Eswatini