Slower demand affects Swazi transport route

MBABANE – The Central Bank of Swaziland reports that Swaziland remains hugely dependent on SA for services, but while services in general sourced from SA increased 35% during the last quarter of 2012, transport services dropped by about 5%. The lessening of demand for over-border transport services like road freight haulage may seem relatively slight; however the drop goes against years of consistent or increasing levels of SA freight haulage services for a country that must import virtually all its consumer goods and all its petroleum products from or via SA. The decrease in imports is not only unfavourable news for SA goods transporters but also indicates Swaziland’s everworsening economy. The Central Bank also reported lower-than-expected inf lation as the purchasing power of Swazis is eroded by higher unemployment and business closures that are not compensated for by foreign direct investment, which is virtually moribund in Swaziland. SA services that increased by over a third during the most recent time period reviewed by the Central Bank unfortunately needed no road or rail freight services for transport. These were the accounting, consulting and legal services brought to the country by SA professionals.