Swaziland’s export industries were hit hard this past year by the strong rand, to which the local currency (the lilangeni) is linked, the Central Bank of Swaziland told FTW. Local transport firms and SA companies that bring inputs and ship out finished products are feeling the effect. Forest fires that destroyed 80% of key timber-producing plantations led to the shutting of Chrisilda Transport’s operations at SAPPI Usuthu after the parent company closed down SAPPI’s Swaziland operations. A long-time hauler of cross border commodities, Express Cargo, also recently folded in a reversal of the industry’s competitive order that previously saw newer road freight firms closing before established companies. The stable to good export performance of sugar and sugar-based products (mostly sweets and soft drink concentrates) helped haulers of those commodities weather the recession. Sugar exports rose to 304 000 Mt this year compared to 299 000 Mt last year. But production of canned fruits was down by half at the end of the financial year ending March 31 from three years earlier, and movers of construction materials suffered from a drop in activity in that sector. Completed buildings this past year were worth only R50m compared to R78m in new construction the year before. Almost all coal mined in Swaziland is exported and used in SA but this leading mineral export saw a drop to 130 000 Mt this past year from 241 000 Mt the year before – a significant drop from the 311 000 Mt mined just two years ago. The much-reported 62% drop in Swaziland’s portion of SACU receipts spells bad news for government, and may cause a crisis if payrolls aren’t met for government employees and security forces. But the private sector will be less impacted. Last year Swaziland received R5.19 billion in SACU customs receipts. That fell to R1.97 billion this year. Of greater concern for road transporters is what effect a government budget crisis will have on customs operations and similar services related to cargo haulage. Unpaid bills have led to a halt in construction at the new Sikhupe International Airport, but air freight volumes into and out of Swaziland are relatively negligible compared to road and rail, and the service is seen by industry as a convenience rather than a lifeline.
