Stagnant Swazi transport sector calls for action

JAMES HALL MBABANE – The transport sector will have fewer goods to haul in two years unless government gets its economic house in order and concerted efforts are made to attract a diverse array of new foreign investors, economists warned last week. “In terms of restoring external competitiveness, there is nothing much that Swaziland can do when it is such a small economy. But when the South African economy is performing well, Swaziland should be in a position where it can be boosted by the South African economy,” Seamus Vasey, global market research analyst for Standard Bank South Africa, told a group of local business leaders assembled by the bank. However, this is not happening. The Central Bank of Swaziland puts GDP growth at 1% for 2006, down from 1.2% last year, and a third of the 3.6% achieved four years ago. The same level of growth is predicted for next year, before declining to less than 1% in 2008. Such projections may explain why 2006 has not seen the establishment of any new transport sector companies, including freight forwarding firms, reversing a trend begun ten years ago. Government said that new investors were coming, in production other than garments and textiles. This would represent a diversification of investment recommended by economists, who noted major investment since the 1990s had been in the apparel industry.