Transport sector thrives despite GDP slowdown

SWAZILAND’S GDP growth slowed to 1.7%
this year and may drop to 1% next year due to
drought that has devastated the agriculture sector
in this agriculture-dependent economy. Forest
fires in September seriously damaged commercial
timber areas, which will affect key paper pulp
exports.
But slow growth is better than no growth or
even negative growth, and the transport business
is one sector that continues to thrive. There are
always challenges, including the seasonal nature
of shipping and the problems arising from being
a landlocked country dependent on neighbouring
states for access to seaports.
Tension between the Swazi business
community at South African Revenue Service
(SARS) came to a head in July at a meeting
between Sars officials and importers and
exporters. 80% of the country’s goods and
services come from SA, which absorbs 60%
of Swaziland’s exports, including all its coal
production.
Face to face with Sars officials, transporters
complained about onerous regulations, seemingly
capricious rulings, and loss of cash liquidity as
they wait for months for VAT refunds.
For Willie Stuart of Speedy Overborder, the
attitude of Sars officials was a cause for grievance.
“Everyone has problems, us too. Our concern is
not getting refunds, but the attitude of personnel
at the border. We’ve been doing this work for
years, and they still treat us like it’s our first day.
They are given tremendous power to assist us, and
they use it to hassle us,” Stuart told FTW.
Meanwhile construction continues on a new
international airport an hour’s drive east of
the country’s tidy little commuter airport at
Matsapha, where the railway’s Inland Container
Depot and most Swazi industry is located.
Supporters of the airport say it will finally allow
large-scale airfreight shipping.
And despite cost overruns and slow
advancement of the Mbabane by-pass road,
the nation’s highway system continues to
expand. One thing businesses agree upon is that
Swaziland’s roads aren’t bad.