ECONOMIC EFFECTS OF CONTINUED DETENTION OF MPS TO BE FELT IN THE FUTURE

By Lunga Masuku
MBABANE – eSwatini’s economy may look promising, but the effects of the continued detention of the two Members of Parliament, Mduduzi Bacede Mabuza and Mthandeni Dube will be felt a few years later.
This was despite that the recently published Central Bank of eSwatini Monetary Policy statement shows that the country’s economy seasonally grew by an adjusted 17.5 per cent from a revised 5.9 percent in the previous quarter.
However, Monitoring and Evaluation expert Thembinkosi Dlamini is of the view that the continued detention of the two MPs will create hesitancy among investors, Dlamini is of the view that their continued incarceration will create hesitancy among investors or those who wish to expand their businesses in eSwatini because of the fear that violence may erupt, with the potential of being worse than before.
“It is now public knowledge that the charges preferred against the two MPs were politically motivated and evidence to that effect is in the public domain. The fact that the Judiciary has not yet thrown the book at the prosecution demonstrates the extent that it is not independent to prove that the rule of law is not supreme,” said Dlamini.
He believes that for business people and investors their property rights cannot be guaranteed in the country, while also proving that one cannot bank hopes on the courts to enforce contracts and uphold parliamentary privileges.
“All the happenings have become a blot on our quest of making it an export driven economy and a preferred investment destination in the region,” added Dlamini.
The Monetary Policy statement has maintained the interest rate at 3. 75 per cent, it has been at this rate since the beginning of the current year. The Monetary Policy statement says that headline inflation had been on a decline since the last meeting of the Monetary Policy Consultative Committee.
Inflation has decreased to 3.3 per cent as from October 2021 from 3.6 per cent of the previous month. Inflation remains moderate and it is projected to average 3.7 percent in the fourth quarter of 2021.
Banks are expected to maintain the prime lending rate on loans extended to individuals and businesses at 7.25 percent until the next monetary policy statement meeting in January 2022.
The country’s reserves as of November 12, 2021, being stock for the country’s reserves stood at E10 billion enough to cover an estimated four months of imports.