Information about Sub-Saharan Africa África subsahariana
Journal Issue
Share
Article

The Kingdom of Swaziland

Author(s):
International Monetary Fund
Published Date:
March 2006
Share
  • ShareShare
Information about Sub-Saharan Africa África subsahariana
Show Summary Details

Basic Data

Swaziland: Basic Data
Area17,364 square kilometers
Population (2005)1,045,000
Population growth rate (2005)0 percent
Formal employment (2003)102,000
IMF Position (November 30, 2005)
QuotaSDR 50.70 million
Fund holdings of emalangeniSDR 44.15 million
Holdings of SDRsSDR 2.48 million
Exchange rateUS$1 = E 6.32
Sources: Swazi authorities.

In U.S. dollars.

IMF Information Notice System trade-weighted; end of period.

The fiscal year runs from April 1 to March 31.

Excluding net errors and omissions.

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

20002001200220032004
Prel.
(Annual percentage change, unless stated otherwise)
National Income and Prices
GDP at constant prices2.61.62.92.42.1
GDP per capita at constant prices0.0-1.00.30.1-0.1
GDP deflator11.610.812.612.13.4
CPI (period average)7.27.511.77.43.4
CPI (end of period)6.410.811.54.63.2
Unemployment rate (in percent)31.331.330.029.030.0
External sector
Current account balance (in millions of U.S. dollars)-75.0-56.857.636.340.0
Trade balance (in millions of U.S. dollars)-31.2-22.5-0.3-0.9-13.1
Exports, f.o.b. 1/3.048.316.03.32.8
Imports, f.o.b. 1/-6.933.7-9.2-9.8-2.4
Nominal effective exchange rate 2/-1.9-5.10.14.41.3
Real effective exchange rate 2/-1.91.7-0.511.81.2
Money and credit
Broad money-6.610.713.114.110.4
Prime lending rate (in percent; end of period)14.012.516.511.511.0
Interest rates on 12-month time deposits (in percent; end of period)7.06.39.54.24.1
(In percent of GDP)
Gross national savings13.213.924.619.919.0
Of which: government4.85.23.03.33.4
Gross domestic investment18.618.419.818.017.4
Of which: government6.38.07.45.77.7
Central government finance (fiscal year) 3/
Total revenue and grants28.427.626.326.329.3
Of which: South African Customs Union (SACU) receipts14.213.312.412.616.8
Total expenditure and net lending29.930.630.829.033.6
Current expenditure and net lending23.822.623.423.126.0
Central government balance (including grants)-1.4-3.1-4.5-2.7-4.3
Primary balance (including grants)-0.8-2.1-3.3-1.6-3.3
External sector
Current account balance-5.4-4.54.81.91.6
Trade balance (merchandise goods)-9.8-6.57.62.2-1.3
Capital and financial account balance1.2-9.9-6.6-3.70.4
Overall balance 4/-0.5-4.5-2.2-2.3-0.7
External debt25.822.929.421.722.6
Memorandum items:
GDP in current prices (in millions of emalangeni) 5/9,63810,84612,56014,42216,262
Overall balance of payments (in millions of U.S. dollars)-6-56-25-2145
Net official international reserves (in millions of U.S. dollars)293228217212258
(in months of imports of goods and nonfactor services)2.62.02.31.51.3
Total external debt (in millions of U.S. dollars)358288351413571
Sources: Swazi authorities.

In U.S. dollars.

IMF Information Notice System trade-weighted; end of period.

The fiscal year runs from April 1 to March 31.

Excluding net errors and omissions.

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Sources: Swazi authorities.

In U.S. dollars.

IMF Information Notice System trade-weighted; end of period.

The fiscal year runs from April 1 to March 31.

Excluding net errors and omissions.

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Swaziland’s External Competitiveness in the Context of the Common Monetary Area1

A. Introduction

1. Swaziland is a small, open, land-locked economy within the Common Monetary Area (CMA) and the South African Customs Union (SACU).2 There are no exchange controls among CMA countries, while trade among SACU countries is free of tariffs and quotas. The SACU joint customs and excise pool provides about half of Swaziland’s fiscal revenues. Swaziland’s main exports are sugar and sugar-based products, wood pulp and garments. South Africa absorbs about 60 percent of Swazi exports, and provides about 80 percent of the country’s imports. Although Swaziland is a low middle-income country, poverty is widespread, aggravated by food shortages in some parts of the country and a severe HIV/AIDS epidemic.

2. Except for 2002, when the garment sector grew rapidly, economic growth has decelerated since the mid-1990s while the external current account has deteriorated. At the same time, foreign direct investment (FDI) declined from an annual average of 7.1 percent of GDP in 1985–93 to 4.7 percent of GDP in 1994–2002 and, after turning negative in 2003, amounted to 2.5 percent of GDP in 2004. External factors, such as South Africa’s democratization since 1994, as well as domestic factors, e.g., governance issues, have contributed to the slowdown. Taken together, these developments suggest a weakening of Swaziland’s external competitiveness. After describing some key features of the CMA and their policy implications for Swaziland (Section B), this chapter, to the extent that data availability allows, discusses (in Section C) some aspects of Swaziland’s external competitiveness focusing on (i) trade preferences; (ii) exchange rate developments; (iii) wage costs and productivity; and (iv) nonwage costs and the investment climate. Section D concludes the chapter.

B. Objectives and Key Features of the CMA3

3. The CMA was established in April 1986, succeeding the Rand Monetary Area (RMA) that was created in December 1974. The CMA’s objectives are to confer the advantages of a common monetary area on its members, provide for the sustained economic development of the CMA as a whole, encourage the advancement of the less-developed members, and afford to all parties equitable benefits arising from the maintenance and development of the CMA.

4. Article 2 of the CMA agreement gives each of the three small member countries (Lesotho, Namibia, and Swaziland) the right to issue national currencies. The local currencies (in Swaziland, the lilangeni) issued by the three members are legal tender in their respective countries only. The South African rand, however, is legal tender throughout the CMA.4 Like the currencies of the other small CMA members, the lilangeni is pegged to the rand at par.

5. Under the terms of the CMA Agreement (Article 3), no restrictions can be imposed on the transfer of funds, whether for current or capital transactions, to or from any member country.

6. Article 5 of the CMA Agreement requires the smaller countries’ exchange control regulations to be similar, in all material aspects, to those in effect in South Africa.

Policy Implications of Swaziland’s Membership in the CMA

7. The peg of the lilangeni to the rand, the parallel circulation of the lilangeni and the rand, currency convertibility, and regional capital mobility imply that Swaziland (like the other small CMA countries) does not have independent control of its money supply. The demand for emalangeni depends in large part on the public’s confidence in the exchange rate parity given the extensive financial linkages between Swaziland and South Africa.5 Swaziland’s monetary base basically expands (or contracts) in line with central bank purchases (or sales) of foreign exchange. Given the small size of its economy relative to that of South Africa and their extensive financial links, interest rate movements in Swaziland largely mirror those in South Africa.

8. Swaziland’s exchange rate arrangement under the CMA has certain characteristics of a currency board, with the Central Bank of Swaziland (CBS) converting at the fixed rate emalangeni into rand and vice versa. However, a currency board is typically prohibited by law from acquiring domestic assets, so all the currency it issues is automatically and fully backed by foreign reserves.6 There is no such legal restriction for Swaziland under the CMA. Thus, following draw downs of government deposits in recent years to help finance fiscal deficits, the CBS has been recording an increase in its net domestic assets and, given the demand for emalangeni, diminishing levels of its net international reserves.7 As of end-September 2005, Swaziland’s international reserves covered only 1.1 months of imports.

9. Given the exchange rate peg and lack of monetary independence, Swaziland will have to rely on fiscal and structural policy measures to achieve its economic goals and preserve, or improve, its external competitiveness. The next section discusses some indicators of Swaziland’s external competitiveness.

C. Indicators of External Competitiveness

Trade preferences

10. The existence of several preferential trade arrangements represents a key factor in Swaziland’s external competitiveness.8 The Swazi economy benefits from preferential access to the European Union (EU) under the Cotonou agreement and, since 2000, to the United States (U.S.) under the African Growth and Opportunity Act (AGOA). However, both the EU and the U.S. have maintained quotas on sugar imports.

11. Sugar accounts for some 12 percent of Swaziland’s exports, about half of which is exported to other SACU countries. Sugar is exported to the EU under two preferential agreements: the Sugar Protocol (100,000–130,000 tons per year) and the Special Preference Sugar (SPS) (about 40,000 tons per year), at prices that are more than three times higher than those in unprotected sugar markets. Exports to the EU amount to about one quarter of total sugar exports (including to SACU countries) in volume terms, and 40 percent by value.

12. Swaziland historically has had a small garment sector that mainly catered to the South African market. The coming into force of AGOA’s apparel provisions in 2001 explains its recent rise, through foreign direct investment notably from the Far East. At its peak, in early 2004, the sector provided about one quarter of formal employment. The bulk of the garment sector’s output consists of quota-constrained basic items (e.g., trousers and T-shirts), sold to high-volume discount chains in the U.S.. Swaziland’s garment exports have particularly benefited from AGOA’s “third party fabric provision” granted to least-developed countries (LDC’s). Under this provision, Swaziland is allowed to import inputs from nonmembers of AGOA without repercussions for its quota-free access to the U.S. market. With relevant U.S. import tariffs at more than 15 percent,9 on average, and with foreign inputs accounting for at least 50 percent of total costs, value added in Swaziland is effectively protected at a rate of 30 percent or more.1011

13. Since textile quotas under the Uruguay Round Agreement on Textiles and Clothing (ATC) were lifted at the beginning of 2005, exports by low-cost producers that are no longer quota-constrained, in particular China, have increased.12 Producers in Swaziland have reported steep declines in garment exports and unofficial estimates suggest that some 15,000 jobs (about half of the sector’s total) have been lost since early 2004.

14. Additional shocks affecting the garment sector are likely to occur:

  • The “third party fabric provision” under AGOA is scheduled to be phased out in the fall of 2007. Maintaining tariff-free access to the U.S. market would then require sourcing fiber inputs from AGOA sources—which are generally more expensive than the current inputs, most of which originate in Asia;
  • The safeguards imposed by the U.S. and the EU in 2005 on garment imports from China (renewable on an annual basis) are likely to expire by mid-2008. In the case of the U.S., these safeguards limit the annual growth of garment imports from China to 7.5 percent; and
  • Multilateral tariff reduction of nonagricultural products under the Doha round is likely to gradually erode the significance of tariff-free market access.

15. Another adverse shock is the imminent change in the EU Sugar Protocol in 2007, implying a reduction in sugar prices of 36 percent over a 4-year period. Also, SPS access may expire in 2006.

Exchange rate developments

16. Swaziland’s external competitiveness is strongly influenced by its currency peg to the South African rand. On the one hand, this arrangement has precluded any exchange rate movement against Swaziland’s main trading partner, South Africa. Conditioned by this regime, domestic price movements in Swaziland have been largely similar to those in South Africa.

17. On the other hand, between 2002 and 2004, the strength of the rand combined with the general depreciation of the U.S. dollar, led to a sizable appreciation of the lilangeni relative to the dollar, by 50 percent in nominal terms and 24 percent in real effective terms (Figure I.1).13 Developments in nominal and real effective exchange rates are widely used indicators of overall competitiveness. In the case of Swaziland, profit margins of many Swazi exporters, being price takers in international markets, are likely to have been squeezed by the lilangeni’s strong appreciation.14During 2005, the lilangeni weakened against the U.S. dollar by about 13 percent, partly offsetting the earlier appreciation.

Figure I.1.Real and Nominal Effective Exchange Rates, Jan 2001-Sep 2005

Source: IMF, International Financial Statistics and staff estimates.

Wage costs

18. Given the openness of Swaziland’s economy, its external competitiveness is closely related to its wage level. In addition, the country’s fixed exchange rate highlights the importance of domestic cost control for maintaining competitiveness. Available data on minimum wages in manufacturing show an increase of 17.5 percent during 2002–04 (Figure I.2). However, reflecting the appreciation of the lilangeni, the nominal wage expressed in US dollars increased by 58 percent during the period.

Figure I.2.Monthly Minimum Wage in Manufacturing and Processing

Source: Department of Labor.

19. Available data, for the garment sector only, indicate that in 2002 Swazi nominal wages were around the level of those in Asian countries, except China, which has a much higher rate. In addition, although lower than in South Africa, Swazi nominal wages were at the same level as those in Lesotho but exceeded those of Kenya and Madagascar.

Figure I.3.Garment Sector Wages for Selected Countries, 2002

(In U.S. dollars per hour)

Source: USITC (2004); Cadot and Nasir (2001), USAID (2004).

1/ Estimated.

2/ Data for 2001 computed in Cadot and Nasir (2001).

3/ Midrange between US$ 0.68-US$ 088 as reported in USITC.

20. Although no systematic studies have been conducted on labor productivity in Swaziland, anecdotal evidence suggests that, except for the sugar sector, productivity is relatively low.15 Deteriorating social indicators, including increased absenteeism partly due to the HIV/AIDS pandemic, have aggravated the problem.

21. In the agricultural sector, data on yields present a mixed picture. Sugar cane, one of the two main crops, is mainly grown on privately owned, well-irrigated, Title Deed Land (TDL) and output per hectare has increased by some 9 percent since 1998/99 (the Swazi sugar industry is generally considered as efficient and competitive). However, maize, the other main crop, is primarily cultivated on rain-fed communal Swazi Nation Land (accounting for 60 percent of Swazi territory), where output per hectare has almost halved since 1998/99 under the influence of drought, soil erosion, lack of investment and credit, and, increasingly, the effects of the HIV/AIDS pandemic. Productivity declines have affected other food staples as well and since acreage was not increased, absolute declines in food production have occurred, leading to upward pressures on prices.

Figure I.4Sugarcane and Maize Yield, (In metric tons per hectare)

Source: Central Statictical Office and Swaziland Sugar Association.

1/ Title Deed Land (TDL).

2/ Swazi Nation Land (SNL).

Investment climate

22. Swaziland’s investment climate has been negatively affected by perceptions about poor governance, corruption, high costs of utilities and transportation, and a relatively burdensome regulatory environment. These factors have tended to outweigh the benefits of relatively little government intervention and a low crime rate.

23. Governance issues have had a major impact on the business climate. A rule-oflaw crisis in 2002/03 concerning a property dispute that had negatively affected investors’ perceptions has been resolved, contributing to some restoration of confidence. Although a new Constitution, which clarifies various individual rights including provisions to protect private property and provides a clearer separation of the executive, legislature, and the judiciary, became effective in February 2006, uncertainty remains about its implementation. Finally, the lack of important legislation, such as an Investment Code16 and a Companies Act creates uncertainty.

24. Among CMA countries, Swaziland ranks lowest on Transparency International’s Corruption Perception Index (Table I. 1) and, on various occasions, high-ranking government officials, including the Prime Minister, have identified corruption as a major policy challenge.

Table I.1.Corruption Perception Index
2004200520042005
(Mean Value)(Mean Value)RankingRanking
Botswan6.05.931.032.0
South4.64.544.046.0
Lesoth3.43.470.0
Swaziland3.02.7103.0
Africa2.92.8
World4.24.2
Source: Transparency International and Passau University.

The 2004 report covered a total of 146 countries.

The 2005 report covered a total of 155 countries.

Source: Transparency International and Passau University.

The 2004 report covered a total of 146 countries.

The 2005 report covered a total of 155 countries.

25. Utilities and transportation constitute significant bottlenecks for the Swazi business community. According to a survey conducted by the Southern Africa Global Competitiveness Hub (2004), the cost of utilities is relatively high. Power outages (as well as power surges) occur frequently, and many companies reportedly have back up generators. Telecommunications are expensive and internet service needs to be improved. All utilities are provided by public enterprises that charge relatively high tariffs. Likewise, a survey by USAID (2004) concluded that despite a relatively well-developed road system and proximity to major seaports such as Durban and Maputo, transportation is costly and unreliable.17

26. Administrative procedures are complicated and suffer from a lack of transparency and coordination among government agencies.18 For new businesses, the Swaziland Investment Promotion Agency (SIPA), officially a one-stop shop, is often confronted with intervening actions of other government agencies. Approval procedures are time-consuming and lack transparency. Sometimes, rules and regulations are contradictory.19 In addition, existing businesses are faced with time-consuming customs procedures, and arbitrary health and sanitary inspections. The perception is widespread that available incentives are granted to nonresidents only and do not apply to local entrepreneurs.

27. Land tenure issues are being handled by various ministries, which is time consuming. In addition, there are no established procedures for the purchase of Government Title Deed Land. Single women are allowed to hold property title, but married women may only do so with their husband’s consent.

28. Swaziland’s standard corporate tax rate (30 percent) is in line with neighboring countries. The Minister of Finance may, with Cabinet approval, designate an enterprise as a Development Enterprise and grant tax concessions, implying a reduction of the corporate tax rate to 10 percent (the lowest among SACU members) for ten years and exemption from withholding tax on dividends, also for ten years. However, the requirement that new businesses pay provisional corporate income tax six months after commencing operations constitutes a heavy financial burden. In addition, in the absence of a tax tribunal, tax disputes are handled, with long delays, by the judicial courts.

D. Conclusion

29. Available evidence indicates that Swaziland’s external competitiveness has deteriorated in recent years due to erosion of trade preferences, exchange rate appreciation, relatively low labor productivity, partly because of HIV/AIDS, and a poor investment climate. In 2005, real GDP growth slowed to less than 2 percent and gross international reserves declined to 1.1 months of imports at end-September 2005.20 Given Swaziland’s participation in the CMA, i.e., it has no control over the exchange rate and does not have an independent monetary policy, effective implementation of prudent fiscal policies and bold structural reform measures would go a long way to improve Swaziland’s external competitiveness.

References

    CadottOlivier andJohnNassir2001Incentives and Obstacles to Growth: Lessons from Manufacturing Case Studies in MadagascarWorld Bank RPED Discussion Paper No.117.

    • Search Google Scholar
    • Export Citation

    HumpageOwen F. andJean M.McIntire1995An Introduction to Currency Boards,Federal Reserve Bank of Cleveland Economic Review (31)p.211.

    • Search Google Scholar
    • Export Citation

    MassonPaul R. andCatherinePatillo2005The Monetary Geography of Africa (Washington D.C.,Brookings Institutions Press).

    Southern Africa Global Competitiveness Hub2005The Swaziland Investor Road Map.

    United States Agency for International Development (USAID)2004the Elimination of Quotas Under the World Trade Organization Agreement on Textile and Clothing: The Impact on Swaziland,” (Botswana: USAID/Regional Center for Southern Africa).

    • Search Google Scholar
    • Export Citation

    United States International Trade Commission (USITC)2004Textiles and Apparel: “Assessment of the Competitiveness of Certain Foreign Suppliers to the U.S. Market,USTIC Publication No. 3671 (Washington, DC).

    • Search Google Scholar
    • Export Citation
Appendix: CMA features

30. The CMA’s broad objectives are to confer the advantages of a common monetary area on its members, provide for the sustained economic development of the CMA as a whole, encourage the advancement of the less developed members, and afford to all parties equitable benefits arising from the maintenance and development of the CMA (Article 2).

31. Article 2 of the CMA agreement gives the three small member countries (Lesotho, Namibia, and Swaziland) the right to issue national currencies, and their bilateral agreements with South Africa define the areas in which their currencies are legal tender. The local currencies (in Swaziland, the lilangeni) issued by the three members are legal tender in their respective countries only. The South African rand, however, is legal tender throughout the CMA.

32. Under the terms of the CMA Agreement (Article 3), no restrictions can be imposed on the transfer of funds, whether for current or capital transactions, to or from any member country. The only exceptions result from the member countries’ investment or liquidity requirements prescribed for financial institutions. The small member countries tend to view the investment and liquidity requirements as a measure of savings mobilization for development purposes. The regulations requiring the investment of funds by financial institutions in domestic securities or credits to local businesses or individuals are, in effect, minimum local asset requirements. These regulations are meant to address the concerns of the three small, less developed, CMA members that funds generated in their territories and deposited with local financial institutions tended to flow to the more developed capital markets of South Africa. Swaziland’s minimum local assets to total deposits ratio, which has been reduced in recent years, is 13 percent at present.

33. The CMA Agreement provides for the three small member countries to have access to the South African capital and money markets, but only through prescribed investments or approved securities that can be held by financial institutions in South Africa.

The CMA Agreement (Article 5) requires the smaller countries’ exchange control regulations to be—in all material aspects—similar to those in effect in South Africa.

34. Since the rand is legal tender in all CMA countries (but the currencies of the three small CMA members are not legal tender in South Africa), South Africa compensates them for forgone seigniorage. Compensation is based on a formula equal to the product of (i) two-thirds of the annual yield on the most recently issued long-term South African government stock; and (ii) the volume of rand estimated to be in circulation in the member country concerned. The ratio of two-thirds was established on the assumption that it approximated the yield of a portfolio of reserve assets comprising both long-term and short-term maturities, assuming that the average yield would be less than the full long-term yield.

35. To facilitate the implementation of the CMA Agreement, the member countries have established a commission in which each of them has one representative (along with some advisors, as needed). The commission holds regular consultations—at least once a year—with the aim of reconciling the interests of member countries on common issues pertaining to monetary and foreign exchange policies. It also convenes at other times at the request of a member country. Article 9 of the CMA Agreement provides for the establishment of a tribunal to arbitrate disputes that might arise between member countries regarding the interpretation or application of the agreement.

Table 1.Swaziland: Gross Domestic Product by Sector of Origin at 2000 Constant Prices, 2000-2004
20002001200220032004

Est.
(In millions of emalangeni)
Primary production1,081.1983.11,038.31,074.81,072.2
Agriculture and livestock985.9894.8945.3987.9978.2
SNL crops 1/80.472.957.849.766.3
TDL crops 2/790.4747.6803.8855.0828.2
Livestock and other115.174.383.783.283.7
Forestry53.054.555.456.861.2
Mining42.233.837.630.032.7
Secondary production2,954.83,050.73,123.53,176.23,211.5
Manufacturing2,400.22,422.82,474.92,519.82,533.3
Electricity and water105.9111.7127.5130.5127.3
Construction448.7516.2521.0525.9550.9
Services2,660.52,737.72,810.92,877.92,965.4
Wholesale and retail494.4530.2557.9592.0622.2
Hotels and restaurants122.9115.9120.8124.5150.1
Transport218.1216.7223.0252.8267.1
Communications140.7153.5156.3122.3130.7
Banking, finance, and insurance248.4243.0266.6293.9357.5
Real estate81.483.886.989.594.2
Government services1,243.51,268.41,281.01,319.61,334.8
Other services80.782.383.685.587.5
Owner-occupied dwellings198.1207.9214.6212.5206.4
Imputed bank service charge-167.7-164.1-179.8-214.9-285.0
GDP at factor cost6,696.46,771.46,972.77,128.97,249.0
Indirect taxes less subsidies2,941.23,021.43,102.63,192.93,285.3
GDP at market prices 3/9,637.69,792.810,075.310,321.710,534.3
(Annual percentage change)
Agriculture and livestock1.1-9.25.64.5-1.0
Forestry2.32.81.62.77.8
Mining-22.8-19.911.2-20.19.0
Manufacturing1.50.92.11.80.5
Electricity and water-6.75.414.22.3-2.5
Construction9.815.00.90.94.7
Services4.42.92.72.43.0
GDP at market prices2.61.62.92.42.1
(In percent of GDP at factor cost)
Agriculture and livestock14.713.213.613.913.5
Forestry0.80.80.80.80.8
Mining0.60.50.50.40.5
Manufacturing35.835.835.535.334.9
Electricity and water1.61.61.81.81.8
Construction6.77.67.57.47.6
Services39.740.440.340.440.9
Source: Central Statistical Office.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Source: Central Statistical Office.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Table 2.Swaziland: Gross Domestic Product by Sector of Origin at Current Prices, 2000-2004(In millions of emalangeni, unless otherwise indicated)
20002001200220032004

Est.
Primary production1,081.11,013.21,122.31,100.91,120.6
Agriculture and livestock985.9922.81,018.4993.11,001.8
SNL crops 1/80.492.170.874.1103.2
TDL crops 2/790.4752.0859.1838.6816.5
Livestock and other115.178.788.580.482.1
Forestry53.055.856.657.461.8
Mining42.234.647.350.457.0
Secondary production2,954.83,273.83,615.03,939.34,334.3
Manufacturing2,400.22,710.12,983.33,269.73,403.0
Electricity and water105.9111.7127.5130.6134.0
Construction448.7452.0504.2539.0797.3
Services2,660.52,847.33,138.43,470.53,770.4
Wholesale and retail494.4563.6642.5715.7797.3
Hotels and restaurants122.9125.6143.2146.8147.8
Transport218.1223.2248.7267.7261.1
Communications140.7161.8186.1214.0218.6
Banking, finance, and insurance248.4242.3285.1314.2382.4
Real estate81.483.686.389.493.2
Government services1,243.51,363.41,496.11,687.31,856.0
Other services80.782.685.086.789.2
Owner-occupied dwellings198.1164.9158.0161.0165.7
Imputed bank service charge-167.7-163.7-192.6-212.3-240.9
GDP at factor cost6,696.47,134.37,875.78,510.79,225.3
Indirect taxes less subsidies2,941.23,711.84,684.35,911.77,037.0
GDP at market prices 3/9,637.610,846.112,560.014,422.416,262.3
Memorandum items:
GDP deflator (index, 2000 =100)100.0110.8124.7139.7154.4
(percent change)11.610.812.612.110.5
Source: Central Statistical Office.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Source: Central Statistical Office.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Table 3.Swaziland: Gross Domestic Product by Expenditure Category at Current Prices, 2000-2004
20002001200220032004

Est.
(In millions of emalangeni)
Final consumption expenditure9,344.010,515.110,107.011,880.813,975.0
Private7,580.78,592.57,772.39,199.810,552.4
Government1,763.31,922.62,334.72,681.03,422.6
Capital formation1,793.91,996.42,486.42,590.42,831.6
Gross fixed capital formation1,793.91,996.42,486.42,590.42,831.6
Public1,189.51,129.31,550.91,772.61,572.6
Private604.4867.1935.5817.81,259.0
Increases in stocks0.00.00.00.00.0
Balance of trade for goods and nonfactor services-1,500.3-1,665.4-33.4-48.8-544.3
Exports7,863.29,954.111,923.012,416.115,223.1
Imports, f.o.b. 1/-9,363.5-11,619.5-11,956.4-12,464.9-15,767.4
GDP at market prices 2/9,637.610,846.112,560.014,422.416,262.3
(In percent of GDP)
Final consumption expenditure97.096.980.582.485.9
Private78.779.261.963.864.9
Government18.317.718.618.621.0
Capital formation18.618.419.818.017.4
Gross fixed capital formation18.618.419.818.017.4
Public12.310.412.312.39.7
Private6.38.07.45.77.7
Increases in stocks0.00.00.00.00.0
Balance of trade for goods and nonfactor services-15.6-15.4-0.3-0.3-3.3
Exports of goods and services81.691.894.986.193.6
Imports of goods and services, f.o.b.-97.2-107.1-95.2-86.4-97.0
GDP at market prices100.0100.0100.0100.0100.0
Source: Central Statistical Office.

All Southern African Customs Union receipts are treated as indirect taxes (and therefore deducted from imports, c.i.f. to get imports, f.o.b.), accounting for the significant difference between the trade figures in the national income accounts reported in this table and those in the balance of payments.

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Source: Central Statistical Office.

All Southern African Customs Union receipts are treated as indirect taxes (and therefore deducted from imports, c.i.f. to get imports, f.o.b.), accounting for the significant difference between the trade figures in the national income accounts reported in this table and those in the balance of payments.

Under review by the CSO; data on indirect taxes used for estimation of GDP may contain errors and are subject to downward revisions based on the review.

Table 4.Swaziland: Population and Labor Force Estimates, 2000-2003
2000200120022003
(In percent, unless otherwise indicated)
Annual population growth 1/2.12.0-0.50.0
Population (in thousands) 1/1,029.61,050.01,045.01,045.0
Population density (per sq.km.)59.360.560.260.2
(In thousands, unless otherwise indicated)
Labor force 2/383.0394.0
Total employment259.1263.1
Formal employment 3/92.093.095.0102.0
Public sector29.029.030.030.0
Private sector63.064.065.072.0
Informal employment167.1170.1
Unemployment rate (in percent)31.331.330.029.0
Sources: Central Statistical Office; World Bank; United Nations; and staff estimates.

Estimate, United Nations and national authorities.

World Bank estimates.

Central Statistical Office data.

Sources: Central Statistical Office; World Bank; United Nations; and staff estimates.

Estimate, United Nations and national authorities.

World Bank estimates.

Central Statistical Office data.

Table 5.Swaziland: Developments in Crop Production, 2000/01-2004/05 1/
2000/012001/022002/032003/042005/06

Proj.
2004/05
(In thousands of metric tons)
Volume
Sugarcane4,442.04,179.04,609.05,046.04,884.04834.0
Cotton6.03.91.23.2
Maize86.767.769.371
SNL 2/78.862.062.4
TDL 3/7.95.76.9
Citrus fruit102.389.874.470.9
Tobacco0.0720.1
(In metric tons per hectare)
Yield
Sugarcane102.095.0102.0105.098.098.2
Cotton625.0370.0348.9
Maize
SNL 2/1.41.01.0
TDL 3/1.40.9
Citrus fruit40.940.6
(In millions of emalangeni)
Value
Sugarcane5,399.35,887.0
Cotton31.69.8
Maize76.551.6
SNL 2/70.946.5
TDL 3/5.65.1
Citrus fruit112.0146.6
(In emalangeni per metric ton)
Producer prices
Sugarcane1,215.51,408.7
Cotton2,412.22,500.0
Maize900.0750.0
Citrus fruit1,095.01,632.0
Source: Central Statistical Office and Swaziland Sugar Association.

Variable crop years.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Source: Central Statistical Office and Swaziland Sugar Association.

Variable crop years.

Swazi Nation Land (SNL).

Title Deed Land (TDL).

Table 6.Swaziland: Developments in Sugar Production, Processing, and Consumption, 2000/01-2004/05
2000/012001/022002/032003/042004/05
(In thousands of hectares)
Crop area
Area under cultivation45.047.048.049.950.9
Area harvested44.044.045.048.049.7
(In thousands of metric tons)
Production and processing
Cane4,442.04,179.04,609.05,046.04,884.0
Sucrose603.0573.0666.0719.0686.0
Sugar528.0501.0583.0628.0598.0
(In metric tons per hectare harvested)
Sugarcane yield102.095.0102.0105.098.0
(In thousands of metric tons)
Domestic consumption and local sales 3/255.0296.0281.0332.0311.0
Source: Swaziland Sugar Association.

Sugarcane is grown mainly on Title Deed Land.

Crop year beginning in April, unless otherwise indicated.

Calendar year. “Domestic” covers Swaziland, as well as the other members of the Southern African Customs Union.

Source: Swaziland Sugar Association.

Sugarcane is grown mainly on Title Deed Land.

Crop year beginning in April, unless otherwise indicated.

Calendar year. “Domestic” covers Swaziland, as well as the other members of the Southern African Customs Union.

Table 7.Swaziland: Mineral Production and Exports, 2000-2004(In thousands of metric tons)
199920002001200220032004
Production
Chrysolite asbestos 1/22.912.73.0
Coal426.3378.0313.0553.4448.7448.3
Exports
Chrysolite asbestos23.013.03.0
Coal426.0378.0313.0553.4355.9
Sources: Central Statistical Office; and Geological Survey and Mines Department.

Asbestos mining stopped in 2001.

Sources: Central Statistical Office; and Geological Survey and Mines Department.

Asbestos mining stopped in 2001.

Table 8.Swaziland: Index of Industrial Production, 2001-2003(1985 = 100)
200120022003
Mining76.685.667.9
Manufacturing
Sugar refining154.2168.4181.4
Other agro-processing130.9127.2125.5
Drink processing2,926.73,407.23,289.3
Wood pulp, timber, and packaging109.1112.6102
Other manufacturing633.1696.1745.6
All industries266.2306.6313.0
Source: Central Statistical Office.
Source: Central Statistical Office.
Table 9.Swaziland: Electrical Power Generation and Demand, 2000-2004(In millions of kilowatt-hours)
20002001200220032004
Total local production and imports 1/812.1846.9893.0994.11,020.3
Local production 2/264.7205.6203.7123.0103.5
Hydroelectric263.4243.9202.2121.6
Diesel1.31.71.51.4
Imports (from ESKOM) 3/547.4601.3689.3871.1916.8
Total sales 1/695.6719.5764.6831.8840.8
Household166.9170.8177.8189.1190.6
Commercial74.674.980.787.491.5
Irrigation power and bulk454.1473.8506.1555.3558.7
Source: Swaziland Electricity Board.

The difference between production and sales is accounted for by transmission and distribution losses.

Excludes self-generated power of several industrial concerns.

South African Electricity Supply Commission (ESKOM).

Source: Swaziland Electricity Board.

The difference between production and sales is accounted for by transmission and distribution losses.

Excludes self-generated power of several industrial concerns.

South African Electricity Supply Commission (ESKOM).

Table 10.Swaziland: Retail Price Indices of Urban Families, 2001-2005 1/
20012002200320042005

Sept.
(January 1996 = 100)
All-groups index 2/154.1167.9179.8185.6194.5
Food151.6177.9198.8210.0227.5
Alcohol and tobacco185.4194.3220.5234.2257.2
Clothing and footwear130.8135.2143.3144.4146.3
Housing127.7127.7137.6144.7146.5
Fuel and power276.6282.4303.4317.5328.6
Furniture and appliances143.5156.3160.6159.4159.2
Household operations180.6192.1202.5208.7209.5
Health care149.2153.9162.3161.3163.3
Transport and communications162.9172.5177.4181.1199.0
Leisure133.6138.4142.9141.3135.8
Education193.0254.6272.1278.8313.3
Personal care166.6156.7154.4155.4154.2
Miscellaneous121.3121.8125.5125.9126.1
Low-income index 3/163.8177.9193.3201.3212.3
Middle- and high-income index 4/153.9167.5179.2185.0193.8
(Percentage change over previous year)
All-groups index 2/10.811.54.63.25.0
Low-income index 3/9.712.34.84.15.4
Middle- and high-income index 4/10.811.54.73.25.0
Memorandum item:
Consumer price index in South Africa4.812.40.23.44.4
Source: Central Statistical Office.

For 2005, latest available month.

End of period; derived independently from the two income indices on the basis of a different basket of goods and services.

End of period; families with incomes of E 2,399 per annum and below.

End of period; families with incomes between E 2,400 and E 8,760 per annum.

Source: Central Statistical Office.

For 2005, latest available month.

End of period; derived independently from the two income indices on the basis of a different basket of goods and services.

End of period; families with incomes of E 2,399 per annum and below.

End of period; families with incomes between E 2,400 and E 8,760 per annum.

Table 11.Swaziland: Minimum Wages for General Workers in Selected Industries, 2001-2003 1/
200120022003
(In emalangeni per month)
Retail and wholesale
Mbabane and Manzini833.0833.0833.0
Elsewhere726.6726.6726.6
(In emalangeni per week)
Manufacturing and processing120.3131.1131.1
(In emalangeni per day)
Agriculture12.812.812.8
(In emalangeni per hour)
Building and construction4.14.14.1
Motor and engineering trades3.33.33.3
(Annual percentage change)
Retail and wholesale
Mbabane and Manzini8.00.00.0
Elsewhere8.00.00.0
Manufacturing and processing8.59.00.0
Agriculture19.10.00.0
Building and construction19.50.00.0
Motor and engineering trades14.20.00.0
Source: Department of Labor.

As of December of each year.

Source: Department of Labor.

As of December of each year.

Table 12.Swaziland: Paid Employment in the Private and Public Sectors by Industry, 2000-2003 1/(In number of employees)
2000200120022003
PrivatePublicPrivatePublicPrivatePublicPrivatePublic
Agriculture/forestry18,4252,15918,47028520,7872,30223,8562,386
Mining and quarrying9220620042509550
Manufacturing18,897019,898019,370020,1650
Electricity and water01,40701,40901,45501,508
Construction3,7181,7953,9681,8114,1151,9823,7852,055
Distribution9,29009,29009,902010,5620
Transportation1,3661,8521,3501,8691,2281,2301,3201,275
Finance6,5059016,5729206,1059456,452980
Social services4,47520,5314,64920,6744,33521,1775,12121,952
Total63,59828,55464,81728,75466,26729,09172,21630,156
Memorandum item:
Swazi mining migrant labor8,308
Source: Ministry of Enterprise and Employment.

Paid employment (including part-time) as of June of each year.

Source: Ministry of Enterprise and Employment.

Paid employment (including part-time) as of June of each year.

Table 13.Swaziland: Summary of Central Government Operations, 2000/01-2004/05 1/
2000/012001/022002/032003/042004/05
(In millions of emalangeni)
Total revenue and grants2,825.33,111.23,425.93,908.44,841.8
Tax revenue2,574.42,785.23,107.43,660.54,627.8
SACU receipts1,406.71,503.71,618.61,878.12,772.8
Non-SACU revenue1,167.71,281.51,488.81,782.41,855.0
Nontax revenue138.8199.1155.4110.298.0
Total expenditure and net lending2,968.33,455.44,018.24,314.05,554.0
Current expenditure2,364.12,542.43,045.03,437.24,295.0
Wages and salaries1,071.01,155.31,417.11,668.91,964.0
Goods and services679.5778.2905.61,003.01,421.0
Interest payments63.1102.1167.3173.8168.0
Subsidies and transfers550.5506.9555.0591.5742.0
Capital expenditure604.4867.1935.5817.81,259.0
Net lending-0.245.937.759.03.0
Primary balance-79.9-242.1-425.0-231.8-544.2
Overall balance (including grants)-143.0-344.2-592.3-405.6-712.2
Overall balance (excluding grants)-255.1-471.0-755.4-543.3-828.2
Financing143.0344.2592.3405.6712.2
Foreign (net)-23.5112.6218.477.0255.0
Domestic (net) 2/166.5231.6373.9328.6457.3
Government debt2,331.72,785.72,850.12,955.33,101.9
Foreign2,261.72,656.22,499.72,455.02,461.6
Domestic70.0129.5350.4500.2640.3
(In percent of GDP, unless otherwise specified)
Total revenue and grants28.427.626.326.329.3
Tax revenue25.924.723.924.628.0
SACU receipts14.213.312.412.616.8
Non-SACU revenue11.711.411.412.011.2
Nontax revenue1.41.81.20.70.6
Grants1.11.11.30.90.7
Total expenditure and net lending29.930.630.829.033.6
Current expenditure23.822.623.423.126.0
Of which:
Wages and salaries10.810.210.911.211.9
Goods and services6.86.97.06.78.6
Interest payments0.60.91.31.21.0
Subsidies and transfers5.54.54.34.04.5
Capital expenditure6.17.77.25.57.6
Primary balance-0.8-2.1-3.3-1.6-3.3
Overall balance (including grants)-1.4-3.1-4.5-2.7-4.3
Overall balance (excluding grants)-2.6-4.2-5.8-3.7-5.0
Financing1.43.14.52.74.3
Foreign (net)-0.21.01.70.51.5
Domestic (net)1.72.12.92.22.8
Government debt23.524.721.919.918.8
Foreign22.823.619.216.514.9
Domestic0.71.12.73.43.9
Memorandum items:
Payment arrears0.82.0
GDP at current prices (in millions of emalangeni)9,94011,27513,02614,88216,538
Wages and salaries (in percent of current expenditure)45.345.446.548.645.7
Sources: Ministry of Finance; and Fund staff projections.

The fiscal year runs from April 1 to March 31.

Including domestic payment arrears estimated at 2 percent of GDP for 2004/05. For 2005/06 onwards, including financing gaps.

Sources: Ministry of Finance; and Fund staff projections.

The fiscal year runs from April 1 to March 31.

Including domestic payment arrears estimated at 2 percent of GDP for 2004/05. For 2005/06 onwards, including financing gaps.

Table 14.Swaziland: Central Government Revenue and Grants, 2000/01-2004/05 1/
2000/012001/022002/032003/042004/05
(In millions of emalangeni)
Tax revenue2,574.42,785.23,107.43,660.54,627.8
Taxes on net income and profits678.0725.0827.51,105.41,164.0
Companies233.1245.1259.6322.4324.0
Individuals430.8431.2494.1698.7742.0
Nonresident dividends and interest14.248.873.884.398.0
Taxes on property5.45.56.09.012.0
Taxes on goods, services, and international trade1,886.02,047.52,269.22,540.83,445.8
Southern African Customs Union (SACU) receipts1,406.71,503.71,618.61,878.12,772.8
Sugar export levy15.528.521.812.122.0
Hotel and gaming taxes3.03.23.74.45.0
Licenses and other taxes89.1104.496.698.597.0
Sales tax371.7407.7528.6547.7549.0
Road levy and oil tax0.00.00.00.00.0
Other taxes5.17.24.75.36.0
Nontax revenue138.8199.1157.1104.998.0
Property income91.1137.3108.652.046.0
Fees, fines, and nonindustrial sales47.761.848.552.952.0
Total revenue2,713.22,984.43,264.53,765.44,725.8
Grants112.1126.9163.0137.7116.0
Total revenue and grants2,825.33,111.23,427.63,903.14,841.8
(In percent of GDP)
Tax revenue25.924.723.924.628.0
Taxes on net income and profits6.86.46.47.47.0
Of which
Companies2.32.22.02.22.0
Individuals4.33.83.84.74.5
Taxes on property0.10.00.00.10.1
Taxes on goods, services, and international trade19.018.217.417.120.8
Of which
SACU receipts14.213.312.412.616.8
Sales tax3.73.64.13.73.3
Other taxes0.10.10.00.00.0
Nontax revenue1.41.81.20.70.6
Grants1.11.11.30.90.7
Total revenue and grants28.427.626.326.229.3
(In percent of total revenue and grants)
Tax revenue91.189.590.793.895.6
Taxes on net income and profits24.023.324.128.324.0
Of which
Companies8.27.97.68.36.7
Individuals15.213.914.417.915.3
Taxes on property0.20.20.20.20.2
Taxes on goods, services, and international trade66.865.866.265.171.2
Of which: SACU receipts49.848.347.248.157.3
Other taxes0.20.20.10.10.1
Nontax revenue4.96.44.62.72.0
Grants4.04.14.83.52.4
Memorandum item:
GDP at current market prices (in millions of emalangeni)9,939.711,274.613,025.614,882.416,537.5
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 15.Swaziland: Functional Classification of Central Government Expenditure and Net Lending, 2000/01-2004/05 1/
2000/012001/022002/032003/042004/05
(In millions of emalangeni)
Current expenditure2,364.12,542.43,045.03,437.24,294.9
Wages and salaries1,071.01,155.31,417.11,668.91,964.0
Of which: Health92.0101.0131.0165.2
Education409.0488.0575.0715.4
Other purchases of goods and services679.5778.2905.61,003.01,421.0
Of which: Health79.093.0119.0142.8
Education49.039.064.069.1
Interest payments63.1102.1167.3173.8168.0
Domestic5.65.60.037.049.0
Foreign57.596.4167.3136.8119.0
Subsidies and other current transfers550.5506.9555.0591.5742.0
Of which: subsidies to NFPEs 2/147.5276.2246.5200.7213.2
Capital expenditure604.4867.1935.5817.81,259.0
Of which: Health33.026.022.060.082.6
Education27.044.048.013.027.9
Agriculture60.063.031.048.0104.5
Transport and communications179.0348.0427.0125.0347.6
Other338.4386.1407.5571.8696.4
Net lending-0.245.937.759.03.0
Gross lending19.252.144.368.310.0
Repayments-19.4-6.2-6.5-9.3-7.0
Total expenditure and net lending2,968.33,455.44,018.24,314.05,556.9
(In percent of GDP)
Current expenditure23.822.623.423.126.0
Capital expenditure6.17.77.25.57.6
Net lending0.00.40.30.40.0
Total expenditure and net lending29.930.630.829.033.6
(In percent of total expenditure and net lending, unless otherwise indicated)
Current expenditure79.673.675.879.777.3
Wages and salaries36.133.435.338.735.3
Other purchases of goods and services22.922.522.523.225.6
Interest payments2.13.04.24.03.0
Subsidies and other current transfers18.514.713.813.713.4
Capital expenditure20.425.123.319.022.7
Net lending0.01.30.91.40.1
Memorandum item:
GDP at current market prices (in millions of emalangeni)9,939.711,274.613,025.614,882.416,537.5
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

NFPEs (nonfinancial public enterprises).

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

NFPEs (nonfinancial public enterprises).

Table 16.Swaziland: Economic Classification of Government Current Expenditure, 2000/01-2004/05 1/
2000/012001/022002/032003/042004/05
(In millions of emalangeni)
General public service1,019.01,022.01,213.01,183.01,448.4
General administration756.0739.0907.0495.0962.9
Public safety and defense263.0283.0306.0688.0485.4
Defense173.0168.0202.0255.0282.8
Social services814.0902.01,047.61,358.01,653.0
Education552.0607.0711.0911.01,130.3
Health197.0210.0239.6291.0348.0
Other65.085.097.0156.0174.7
Economic services296.1348.4415.4507.2742.7
Agriculture87.5104.0120.8147.0203.0
Manufacturing, mining, and construction45.045.046.858.069.0
Water and sewerage20.022.024.031.036.0
Transport and communications132.0160.0231.0187.0231.0
Other11.617.4-7.284.2203.7
Interest payments62.0102.0167.0134.0168.0
Total2,364.12,542.43,045.03,437.24,294.9
(In percent of GDP)
General public service10.39.19.37.98.8
General administration7.66.67.03.35.8
Public safety and defense2.62.52.34.62.9
Defense1.71.51.61.71.7
Social services8.28.08.09.110.0
Education5.65.45.56.16.8
Health2.01.91.82.02.1
Other0.70.80.71.01.1
Economic services3.03.13.23.44.5
Interest payments0.60.91.30.91.0
(In percent of total current expenditure)
General public service43.140.239.834.433.7
General administration32.029.129.814.422.4
Public safety and defense11.111.110.020.011.3
Defense7.36.66.67.46.6
Social services34.435.534.439.538.5
Education23.323.923.426.526.3
Health8.38.37.98.58.1
Other2.73.33.24.54.1
Economic services12.513.713.614.817.3
Interest payments2.64.05.53.93.9
Memorandum item:
GDP at current market prices (in millions of emalangeni)9,939.711,274.613,025.614,882.416,537.5
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 17.Swaziland: Capital Expenditure by Sector, 2000/01-2004/05 1/(In millions of emalangeni)
2000/012001/022002/032003/042004/05
General public services124.0270.0277.067.0408.1
General administration103.0244.0225.028.0365.6
Public safety and defense21.026.052.039.042.5
Social services133.0124.0137.0282.0360.0
Education27.044.048.013.028.0
Health33.026.022.060.083.0
Housing58.043.062.0193.0247.0
Recreation and culture1.00.00.07.01.1
Other14.011.05.09.00.9
Economic services348.0473.0521.5468.8490.9
Agriculture60.063.031.048.0105.0
Industry and mining81.06.04.04.023.0
Water and sewage26.01.012.013.09.0
Transport and communications179.0348.0427.0125.0348.0
Other2.055.047.5278.85.9
Total capital expenditure605.0867.0935.5817.81,259.0
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 18.Swaziland: Government Transfer Payments, 2000/01-2003/04 1/(In millions of emalangeni, unless otherwise indicated)
2000/012001/022002/032003/04
Grants to students69.566.268.5109.0
Grants to mission hospital43.037.137.242.1
Public assistance2.12.20.82.2
Grants to town councils22.129.030.138.7
Grants to youth and sports6.75.15.15.0
External transfers 2/20.323.824.429.4
Swaziland National Treasury7.053.557.454.4
Cattle-dipping chemicals23.28.95.55.5
Swaziland Komati Project Enterprise6.57.87.89.2
Other52.499.6140.1125.9
Total252.8333.2376.9421.4
Memorandum item:
Transfers (in percent of GDP)2.53.02.92.8
Nominal GDP (in millions of emalangeni)9,94011,27513,02614,882
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Subscriptions to international organizations.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Subscriptions to international organizations.

Table 19.Swaziland: Flow of Funds From the Government to Public Enterprises 2000/01-2004/2005 1/(In millions of emalangeni, unless otherwise indicated)
2000/012001/022002/032003/042004/05
Total subsidies to public enterprises266.1396.2306.5200.7213.2
Operating/Transport subsidy125.7128.6175.8169.5172.5
Capital subsidy (flow)140.4267.6130.731.240.7
Total subsidies to public enterprises266.1396.2306.5200.7213.2
Swaziland Development & Savings Bank120.0120.060.00.00.0
Subsidies to nonfinancial public enterprises146.1276.2246.5200.7213.2
Joint Venture Capital Fund0.080.00.00.00.0
Swaziland Water Services Corporation1.12.69.90.00.0
Swaziland Investment Promotion Authority3.73.94.63.94.7
Swaziland Television Authority4.318.410.110.110.1
Sebenta National Institute2.42.83.02.72.7
Swaziland National Trust Commission7.010.27.27.38.3
University of Swaziland63.964.692.4109.3109.3
Motor Vehicle Accident Fund34.028.028.00.00.0
Swaziland Komati Project Enterprise25.637.357.538.638.6
Commission for Mediation etc.0.00.02.22.65.4
National Emergency Response Committee0.00.020.020.020.0
Other4.128.411.66.214.1
Memorandum item:
Total Subsidies (in percent of GDP)2.73.52.41.31.3
Nominal GDP (in millions of emalangeni)9,94011,27513,02614,88216,538
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 20.Swaziland: Outstanding Domestic Government Debt by Type of Instrument, 2000-2004(In millions of emalangeni; end of period)
20002001200220032004
Government bonds and stocks30.030.0260.0260.0180.0
Central Bank of Swaziland0.00.00.00.00.0
Banks20.320.3176.7176.7146.3
Other financial institutions1.01.053.953.914.5
Other8.78.729.429.419.2
Treasury bills 1/40.040.040.0217.7374.0
Central Bank of Swaziland0.00.00.040.073.0
Banks40.040.040.0160.0280.0
Other0.00.00.017.721.0
Total domestic government debt70.070.0300.0477.7554.0
By original maturity
Less than one year40.040.040.0217.7374.0
From one to five years0.030.0210.0210.0130.0
From five to ten years30.00.050.050.050.0
Over ten years0.00.00.00.00.0
Source: Central Bank of Swaziland.

The maturity of treasury bills is three months.

Source: Central Bank of Swaziland.

The maturity of treasury bills is three months.

Table 21.Swaziland: Monetary Survey, 2001-2005 1/
20012002200320042005

Sept
(In millions of Emalangeni)
Monetary authorities
Net foreign assets2,770.51,873.51,404.71,450.21,461.0
Central Bank of Swaziland (CBS)2,388.91,863.31,378.21,243.31,452.0
Of which: Capital Investment Fund (CIF), managed by CBS.1,537.41,219.7712.9666.7569.0
Government381.710.226.5206.99.0
Net domestic assets-2,517.4-1,543.7-974.8-973.2-973.0
Central government (net)-2,112.4-1,299.7-1,030.8-933.2-864.0
CBS claims on government0.057.382.6251.8187.0
Government deposits with CBS-2,112.4-1,357.0-1,113.4-1,185.0-1,051.0
Domestic-193.3-127.1-374.0-311.3-473.0
Foreign 2/-1,919.0-1,229.9-739.4-873.6-578.0
Private sector15.013.012.010.08.0
Commercial banks (net)0.00.00.00.00.0
Other items (net)-420.0-257.044.0-50.0-117.0
Reserve money254.1329.4430.3477.1488.0
Commercial banks
Net foreign assets865.8715.0469.4490.4304.0
Reserves110.0176.0194.0211.0211.0
Domestic credit1,443.31,985.32,614.13,344.23,836.0
Central government (net)59.8215.2286.4331.0326.0
Claims on Government60.0215.4286.7332.5345.0
Government deposits0.20.20.31.519.0
Private sector1,383.61,770.12,327.73,013.23,510.0
Other items (net)-332.0-519.0-613.0-1,100.0-1,275.0
Private sector deposits2,086.52,357.02,663.72,945.93,076.0
Monetary survey
Net foreign assets3,636.42,588.51,874.11,940.61,765.0
Domestic credit-654.0698.71,595.32,421.02,980.0
Central government (net)-2,052.6-1,084.5-744.4-602.2-538.0
Private sector1,398.61,783.12,339.73,023.23,518.0
Other items (net)-681.4-684.7-500.4-1,083.6-1,308.0
Broad money2,300.92,602.42,969.03,278.03,437.0
Currency in circulation 3/134.9155.4213.5235.8271.0
Deposits2,166.02,447.02,755.53,042.23,166.0
(Annual change in percent of beginning-of-period broad money) 4/
Broad money10.713.114.110.44.9
Net foreign assets42.1-45.5-27.52.2-5.4
Domestic credit-9.958.834.527.817.1
Central government (net)-16.742.113.14.82.0
Private sector6.816.721.423.015.1
Other items (net)-21.5-0.17.1-19.6-6.8
Memorandum items:
Currency/broad money (percent)5.96.07.27.27.9
Reserve money/deposits (percent)11.713.515.615.715.4
Money multiplier (broad money/reserve money)9.17.96.96.97.0
Sources: Central Bank of Swaziland (CBS); and Fund staff estimates.

End-of-year data.

Counterpart of government external assets in rand and in CIF.

Excludes rand in circulation.

For September 2005, change from Dec. 2004.

Sources: Central Bank of Swaziland (CBS); and Fund staff estimates.

End-of-year data.

Counterpart of government external assets in rand and in CIF.

Excludes rand in circulation.

For September 2005, change from Dec. 2004.

Table 22.Swaziland: Assets and Liabilities of the Central Bank of Swaziland, 2000 - Nov. 2005(In millions of emalangeni, end of period)
200020012002200320042005

Sept.
2005

Nov.
Foreign assets2,5623,2422,4721,7581,4741,4871,934
CBS managed 1/1,9452,8612,4621,7321,2671,4781,725
Government61738210272079209
Claims on government005783252187242
Claims on private sector161513121088
Claims on commercial banks424200000
Assets = liabilities2,6213,3002,5431,8531,7361,6822,184
Foreign liabilities346473371355252721
Government deposits 2/1,7651,7311,3471,0879781,0411,549
Of which: Capital Investment Fund9411,5371,220713667569586
Private sector deposits688090929698101
Commercial banks100000044
Reserve money277254329430477488493
Currency in circulation 3/214202227286302318329
Commercial bank deposits6252102145175170164
Other items (net) 4/155762406-11115927-24
Source: Central Bank of Swaziland (CBS).

Includes Capital Investment Fund.

Includes counterpart of government foreign assets.

Excludes rand in circulation.

Includes balances held with other banks in Swaziland, bills payable, unclassified assets, and unclassified liabilities.

Source: Central Bank of Swaziland (CBS).

Includes Capital Investment Fund.

Includes counterpart of government foreign assets.

Excludes rand in circulation.

Includes balances held with other banks in Swaziland, bills payable, unclassified assets, and unclassified liabilities.

Table 23.Swaziland: Assets and Liabilities of Commercial Banks, 2000 - Nov. 2005 1/(In millions of emalangeni, end of period)
200020012002200320042005

Sept.
2005

Nov.
Foreign assets654892791521531399418
Claims on government5960215287332345340
Claims on private sector1,3081,3841,7702,3283,0133,5103,533
Reserves138132209236256211230
Balances with CBS6243104121146164109
Cash in tills 2/66677272664777
CBS bills10802500044
Other items (net) 3/-32-62-174-168-103-176-220
Assets = liabilities2,1282,4062,8123,2044,0304,2894,302
Foreign liabilities108267652419565
Government deposits000021924
Private sector deposits1,8622,0862,3572,6642,9463,0763,119
Demand513619670834844965956
Time9611,0861,2551,3531,5171,4871,530
Savings388381431476585623633
Balances due to CBS00003400
Capital accounts1582933784881,0071,1001,094
Source: Central Bank of Swaziland (CBS).

Includes the Swaziland Development and Savings Bank.

Excludes rand in circulation.

Includes balances held with other banks in Swaziland, bills payable, unclassified assets, and unclassified liabilities.

Source: Central Bank of Swaziland (CBS).

Includes the Swaziland Development and Savings Bank.

Excludes rand in circulation.

Includes balances held with other banks in Swaziland, bills payable, unclassified assets, and unclassified liabilities.

Table 24.Swaziland: Commercial Banks’ Deposits by Sector, 2000 - Sept. 2005 1/(In millions of emalangeni, end of period)
200020012002200320042005

Sept.
Demand deposits512619670834845977
Central government2333112
Other public bodies 2/424050492358
Personal162179201264201189
Business306397416517620717
Savings deposits368382432477586624
Central government000000
Other public bodies 2/222205
Personal345355403436492525
Business212427389494
Time deposits9821,0861,2551,35315171494
Central government000007
Other public bodies 2/252270245291106384
Personal151160233264230159
Business5796567777981182945
Total deposits1,8612,0862,3572,66329483095
Central government2000219
Other public bodies 2/295312297342129447
Personal657695837964922873
Business9061,0761,2201,3531,8961,756
Source: Central Bank of Swaziland (CBS).

Excluding bank checks outstanding.

Comprises local government, city councils, and statutory corporations.

Source: Central Bank of Swaziland (CBS).

Excluding bank checks outstanding.

Comprises local government, city councils, and statutory corporations.

Table 25.Swaziland: Commercial Banks’ Liquidity Position, 2000 - Sept. 2005(In millions of emalangeni, end of period)
200020012002200320042005

Sept.
Total liquid assets 1/350390495508561565
Of which: balance with CBS6243104121146164
Required liquid assets307347383371415427
Domestic liquidity surplus4343112137146138
Net due from foreign banks516835695397394223
Total liquidity surplus559878807533540361
Memorandum items:
Liquidity ratios (in percent)
Required liquidity to deposits161414131313
Actual liquidity to deposits191618171717
Source: Central Bank of Swaziland (CBS).

Comprises cash in tills, treasury bills and eligible stock issued by the Swazi government, balances with the CBS and other banks, and other approved liquid assets. Also including rand notes and coins held by banks.

Source: Central Bank of Swaziland (CBS).

Comprises cash in tills, treasury bills and eligible stock issued by the Swazi government, balances with the CBS and other banks, and other approved liquid assets. Also including rand notes and coins held by banks.

Table 26.Swaziland: Commercial Bank Loans and Advances by Category of Borrower, 2000 - Sept. 2005(In millions of emalangeni, end of period)
200020012002200320042005

Sept.
Industry9259691,2241,57818772327
Agriculture and forestry155224304365403527
Mining and quarrying446700
Manufacturing398349311486428498
Construction405983118136165
Distribution and tourism140136163178307378
Transport and communications403982115196188
Social and personal services7080141138137145
Other7876133171269426
Personal loans 1/215185309530874973
Statutory bodies283450387099
Other 2/515570911014
Total1,2191,2431,6532,2372,8303,413
Source: Central Bank of Swaziland (CBS).

Includes small amounts lent to nonresidents.

Local authorities and private financial institutions.

Source: Central Bank of Swaziland (CBS).

Includes small amounts lent to nonresidents.

Local authorities and private financial institutions.

Table 27.Interest Rates in Swaziland and South Africa, Dec. 2001 - Nov. 2005(In percent)
2001200220032004200420042004200520052005
Dec.Dec.Dec.Mar.Jun.Sep.Dec.Mar.Jun.Nov.
Discount rates
Central Bank of Swaziland9.513.58.08.08.07.57.57.57.07.0
South African Reserve Bank9.513.58.08.08.07.57.57.57.07.0
Treasury bills
Swaziland5.610.57.98.28.27.67.67.66.96.8
South Africa9.412.47.57.87.97.17.57.36.96.9
Prime lending rate
Swaziland12.516.511.511.511.511.011.011.010.510.5
South Africa13.017.011.511.511.511.011.011.010.510.5
Bank time deposits
Swaziland–3l days4.88.44.44.44.43.93.93.43.43.4
South Africa–3l days9.012.87.47.67.77.27.27.46.86.9
Swaziland–l2 months6.39.54.24.24.24.14.14.13.53.5
South Africa–l2 months10.212.97.98.68.97.57.37.77.17.3
Bank savings deposits,
Swaziland 1/1.0-5.86.8-9.81.0-6.51.0-6.51.0-6.50.0-6.50.0-6.50.0-5.00.0-5.00.0-5.0
Source: Central Bank of Swaziland (CBS).

Simple average of end-of-period minimum and maximum rates across banks: rates on large-scale interbank deposits, as well as other money rates, often diverge widely from the deposit rates offered to the general public in Swaziland.

Source: Central Bank of Swaziland (CBS).

Simple average of end-of-period minimum and maximum rates across banks: rates on large-scale interbank deposits, as well as other money rates, often diverge widely from the deposit rates offered to the general public in Swaziland.

Table 28.Swaziland: Balance of Payments, 2000-2004(In millions of U.S. dollars, unless otherwise specified)
20002001200220032004
Current account balance-74.6-56.758.036.440.0
Trade balance-136.2-81.890.742.8-32.0
Exports, f.o.b.905.61,043.31,031.61,484.91,877.9
Imports, f.o.b.-1,041.8-1,125.1-940.8-1,442.1-1,909.9
Services (net)-80.1-111.8-93.9-49.3-52.4
Exports of services228.2113.8102.2156.5482.3
Imports of services-308.3-225.6-196.1-205.7-534.7
Goods and services balance-216.3-193.6-3.2-6.5-84.4
Income (net)34.2102.3-1.9-3.631.9
Income (credits)153.6156.7144.2143.5160.8
Income (debits)-119.4-54.4-146.1-147.1-128.9
Of which: interest-31.5-15.4-15.9-18.1-24.9
Transfers (net)107.534.563.146.492.4
Official sector (mainly SACU receipts) 1/120.5108.4100.5145.4213.0
Private sector-13.0-73.9-37.4-99.0-120.6
Capital and financial account balance17.1-67.3-52.6-28.528.7
Capital account balance0.1-0.20.50.0-0.6
Financial account balance (excluding reserve assets)17.0-67.1-53.1-28.529.2
Direct investment74.546.390.2-70.764.9
Portfolio investment-0.6-7.91.9-2.2-11.0
Other investment-56.9-105.5-145.244.4-24.7
Errors and omissions51.767.8-30.3-28.8-23.3
Overall balance-5.8-56.3-24.9-20.945.3
Memorandum items:
Current account/GDP (in percent)-5.4-4.54.91.91.6
Goods and services balance/GDP (in percent)-15.6-15.4-0.3-0.3-3.3
Direct Investment/GDP (in percent)5.43.77.6-3.72.6
Net official reserves (end of period)292.9228.5216.8211.5257.6
In months of imports of goods and services2.62.02.31.51.3
Gross official reserves (end of period)338.5267.4259.5264.8261.8
In months of imports of goods and services3.02.42.71.91.3
External debt service (in percent of exports of goods and services)2.81.31.41.11.1
Total external debt358.1288.4350.8412.9571.0
Public273.5233.9295.5352.2501.0
Private84.654.655.360.770.0
Total external debt/GDP (in percent)25.822.929.421.722.6
GDP at current prices (at market exchange rates)1,3901,2611,1941,9072,521
Lilangeni per U.S. dollar (end of period)7.5712.138.646.645.63
Lilangeni per U.S. dollar (period average)6.948.6010.527.566.45
Sources: Central Bank of Swaziland; and staff projections.

SACU: Southern African Customs Union.

Sources: Central Bank of Swaziland; and staff projections.

SACU: Southern African Customs Union.

Table 29.Swaziland: Balance of Payments, 2000-2004(In millions of emalangeni, unless otherwise specified)
20002001200220032004
Current account balance-517.6-488.2610.3275.3257.7
Trade balance-944.5-703.7954.0323.9-206.4
Exports, f.o.b.6,280.78,975.310,848.311,232.612,112.1
Imports, f.o.b.-7,225.2-9,679.0-9,894.3-10,908.7-12,318.5
Services (net)-555.8-961.7-987.4-372.7-337.9
Exports of services1,582.5978.81,074.71,183.53,111.0
Imports of services-2,138.3-1,940.5-2,062.1-1,556.2-3,448.9
Goods and services balance-1,500.3-1,665.4-33.4-48.8-544.3
Income (net)237.2880.4-19.9-26.9205.9
Income (credits)1,065.51,348.51,516.71,085.71,037.3
Income (debits)-828.3-468.1-1,536.6-1,112.6-831.4
Of which: interest-218.8-132.7-167.0-137.1-160.7
Transfers (net)745.5296.8663.6351.0596.1
Official sector (mainly SACU receipts) 1/835.7932.61,056.91,099.91,373.9
Private sector-90.2-635.8-393.3-748.9-777.8
Capital and financial account balance118.5-579.3-553.4-215.5184.8
Capital account balance0.6-1.74.90.0-3.7
Financial account balance (excluding reserve assets)117.8-577.6-558.3-215.5188.5
Direct investment516.7398.3948.6-534.9418.9
Portfolio investment-4.2-68.020.0-16.4-70.8
Other investment-394.7-908.0-1,526.9335.9-159.6
Errors and omissions358.7583.2-318.2-218.2-150.5
Overall balance-40.4-484.3-261.3-158.4292.0
Memorandum items:
GDP at current prices (at market exchange rates)9,637.610,846.112,560.014,422.416,262.4
Lilangeni per U.S. dollar (end of period)7.5712.138.646.645.63
Lilangeni per U.S. dollar (period average)6.948.6010.527.566.45
Sources: Central Bank of Swaziland; and staff projections.

SACU: Southern African Customs Union.

Sources: Central Bank of Swaziland; and staff projections.

SACU: Southern African Customs Union.

Table 30.Swaziland: Merchandise Exports, 2000-2003(In millions of U.S. dollars)
2000200120022003
Sugar977664118
Wood pulp656169178
Asbestos3100
Meat and meat products3030
Canned fruit13101511
Citrus110628
Coal72625
Diamond0000
Zippers13121020
Edible concentrates204281276762
Wood and wood products2219170
Cottonseed and lint450220
Chemicals0000
Automobile0000
Fruit squash149620
Brake linings0001
Cotton yarn1610140
Face bricks0000
Footwear0001
Other textiles18501490
Paper products188826
Plastic products20037
Refrigerators62215
Ethanol3090
Eucalyptus41830
Television sets00010
Windscreens0001
Other food products3523370
Other/errors and omissions299453125-79
Total domestic exports9031,0518181,384
Reexports76217100
Total exports, f.o.b.9101,0571,0351,484
Sources: Central Statistical Office; and Central Bank of Swaziland.
Sources: Central Statistical Office; and Central Bank of Swaziland.
Table 31.Swaziland: Sugar Exports by Volume, Value, and Unit Price, 2000-2004
20002001200220032004
(In thousands of metric tons)
Volume
Non-SACU275273281279296
European Union (EU)183169153147158
United States1616161616
Other7688112116122
SACU 1/255296281332311
Total production 2/528501583628598
(In millions of emalangeni)
Value
Non-SACU673662956787745
EU542498731596576
United States4250684434
Other89114157147135
SACU 1/565701743874801
(In U.S. dollars per metric ton)
Average unit price
Non-SACU353282324373390
EU427343454536567
United States378363404364329
Other170151133168172
SACU 1/319275251348399
(In emalangeni per metric ton)
Average unit price
Non-SACU2,4502,4253,4022,8212,517
EU2,9592,9474,7784,0543,657
United States2,6253,1254,2502,7502,125
Other1,1791,2951,4021,2671,107
SACU 1/2,2162,3682,6442,6332,576
Source: Swaziland Sugar Association.

The Southern African Customs Union (SACU) accounts for all sales to SACU countries and includes sales of sugar within Swaziland (normally about 10-15 percent of SACU sales).

The difference between total production and total exports represents a change in stock.

Source: Swaziland Sugar Association.

The Southern African Customs Union (SACU) accounts for all sales to SACU countries and includes sales of sugar within Swaziland (normally about 10-15 percent of SACU sales).

The difference between total production and total exports represents a change in stock.

Table 32.Swaziland: Other Principal Exports by Volume, Value, and Unit Price, 2000-2004
20002001200220032004
(In thousands of metric tons)
Volume
Wood pulp133186198168181
Asbestos133
Citrus fruits101100907571
Canned fruits2027262625
(In millions of emalangeni)
Value
Wood pulp446516638425446
Asbestos215
Citrus fruits7183608181
Canned fruits87112149117110
(In U.S. dollars per metric ton)
Average unit price
Wood pulp485324308335382
Asbestos234194
Citrus fruits1029764102136
Canned fruits629522528604682
(In emalangeni per metric ton)
Average unit price
Wood pulp3,3532,7743,2222,5342,464
Asbestos1,6151,667
Citrus fruits703830667768877
Canned fruits4,3504,4805,5194,5644,400
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 33.Swaziland: Merchandise Imports, 2001-2003(In millions of U.S. dollars, unless otherwise indicated)
200120022003
Food and live animals132132203
Beverages and tobacco201824
Inedible crude materials332740
Minerals, fuels, and lubricants97113143
Animal and vegetable oils and fat10914
Chemicals and chemical products112104190
Manufactures classified by material148146222
Machinery and transport equipment197202452
Miscellaneous manufactures9791141
Commodities not classified by kind14
Total imports, c.i.f.
Total imports, f.o.b.1,1409061,442
Imports f.o.b./imports c.i.f.
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 34.Swaziland: Services and Income Account, 2001-2004(In millions of U.S. dollars)
2001200220032004
Nonfactor services: credit114.072.4156.5482.3
Swaziland Railways8.25.612.512.8
Other shipment and transportation4.97.321.526.0
Travel30.642.6101.0123.4
Other official2.23.47.012.8
Other Private68.213.514.4307.4
Nonfactor services: debit-183.3-142.8-205.7-534.7
Shipment and tansp.-42.1-33.8-77.0-88.9
Travel-46.7-39.4-5.85.6
Other official-16.1-7.9-12.0-12.6
Other Private-78.4-61.7-110.9-438.8
Factor income: credit157.4145.3143.5160.8
Investment income83.583.559.553.6
Official82.280.057.350.1
Interest82.280.057.350.1
Private (incl. Property income) 1/1.33.62.23.1
Labour income73.961.784.0107.2
Factor income: debit-97.6-195.1-147.2-128.9
Investment income-54.6-140.5-83.6-63.6
Official & Govnt. guaranteed-13.9-15.0-25.6-15.6
Private-40.7-125.6-58.1-48.1
Property income 1/-43.0-54.5-60.0-61.7
Labour income0.00.0-3.6-3.6
Services and income: credit271.4217.6300.0643.1
Services and income: debit-280.9-337.9-352.9-663.6
Services (net) 1/-69.3-70.4-49.2-52.4
Factor income (net) 1/59.9-49.8-3.731.9
Total (net)-9.5-120.2-52.9-20.4
Source: Central Bank of Swaziland

The Table shows the Central Bank’s classification. In Tables 32 and 33, property income - mostly royalties and license fees - is grouped under services, so that the totals for services and factor income differ by a corresponding amount.

Source: Central Bank of Swaziland

The Table shows the Central Bank’s classification. In Tables 32 and 33, property income - mostly royalties and license fees - is grouped under services, so that the totals for services and factor income differ by a corresponding amount.

Table 35.Swaziland: Financial Account, 2001-2004(In millions of U.S. dollars)
2001200220032004
Direct investment (net)46.384.9-70.765.0
Direct investment in Swaziland28.578.7-61.068.6
Equity capital38.2-10.1-3.8-4.8
Reinvestment of earnings-0.265.3-25.736.7
Other long-term capital18.3-28.915.919.4
Other short-term capital-27.752.4-47.417.3
Direct investment abroad17.76.1-9.8-3.6
Equity capital0.00.40.40.0
Reinvestment of earnings-0.60.00.00.0
Other long-term capital-0.10.10.30.0
Other short-term capital18.45.7-10.4-3.6
Long-term capital (net)-231.1-94.6-45.0-45.2
Public sector (net)4.36.3-2.26.9
Loan drawings (liability)16.020.515.228.3
Loan repayments (liability)-11.7-14.2-17.4-21.4
Sasol Funds (assets)0.00.00.00.0
Private sector (net)-235.4-101.0-42.8-52.1
Private sector (liability)-27.7-31.2-1.10.3
Corporate equity securities-2.5-2.0-0.1-0.3
Loans (drawings and repayments)-25.1-29.2-1.00.6
Private sector (assets)-207.7-69.7-41.8-52.4
Corporate equity securities-0.10.00.00.2
Debt securities (money markets)-5.33.9-0.3-10.9
Loans (drawings and repayments)0.00.0-5.33.6
Other assets including pension funds-202.3-73.7-36.1-45.3
Short-term capital (net)43.9-83.989.1-130.2
Public sector (net)15.6-33.9-51.6-103.7
Received under Southern African Customs Union (SACU) (liability)205.2146.6222.7308.0
Monetary authority currency/deposits (liability)14.8-9.8-2.7-50.3
Other liabilities0.00.00.00.0
Receivable under SACU-204.4-170.7-271.5-361.4
Private sector (net)28.3-50.0140.7-26.5
Banks (net)-37.314.432.5-3.2
Currency and deposits (assets)-27.89.635.7-1.6
Other liabilities (liability)-9.54.8-3.3-1.7
Other (net)65.6-64.4108.2-23.3
Trade credit (liability)2.0-6.82.0-1.3
Other liabilities (liability)-2.1-6.5-12.8-0.9
Trade credit (assets)-7.5-13.0100.7-2.2
Currency holdings73.1-38.118.3-18.9
Other (unrecorded)73.229.1
Financial account balance-67.7-64.5-28.5-23.3
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 36.Swaziland: Public Sector External Debt, 2000/01-2004/05 1/(In millions of U.S. dollars)
2000/012001/022002/032003/042004/05
Multilateral loans173155160195283
IBRD291091622
IDA54444
Arab League00000
United Nations00000
African Development Bank/Fund125128123142223
European Development Fund/European Investment Bank99213031
IMF Trust Fund00000
International Fund for Agricultural Development64333
Economic Development for Equatorial and Southern Africa00000
Bilateral loans4749104171165
United Kingdom21111
Germany2321112929
United States87776
Denmark65665
Canada00000
Other81479128124
Financial institutions3933243738
Other00000
Total258237289403486
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 37.Swaziland: Public Sector External Debt Service, 2000/01-2004/05 1/(In millions of emalangeni)
2000/012001/022002/032003/042004/05
Multilateral loans99.0142.1155.0141.0115.0
Interest38.659.267.063.049.0
Principal60.582.988.078.066.0
Bilateral loans39.765.368.070.035.0
Interest16.113.420.036.07.0
Principal23.651.948.034.028.0
Financial institutions2.526.126.010.064.0
Interest2.522.721.010.064.0
Principal0.03.35.00.00.0
Total141.2233.5249.0221.0214.0
Interest57.195.4108.0109.0120.0
Principal84.1138.1141.0112.094.0
Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Source: Ministry of Finance.

Fiscal year runs from April 1 to March 31.

Table 38.Swaziland: Exports and Share of South Africa, 2003
2003Share of

Exports to

South Africa

(In percent)
Total ExportsExports to

South Africa
(In thousands of U.S. dollars)
Standard International Trade Classification (SITC)
Food and beverages181,965132,05973
Citrus fruit28,36913,78249
Canned fruit and fruit juices35,81815,95345
Sugar, mainly raw117,718102,32587
Nonalcoholic beverages615082
Crude materials220,11398,32345
Coke and wood42,04935,31784
Pulp and waste paper178,06463,00635
Manufactures classified by material65,51954,86784
Paper products36,67935,61697
Textiles and yarns28,82719,25167
Nonmetallic minerals13860
Machinery and transport equipment123,5797,9796
General industrial machinery3,7832,15857
Other machinery and equipment8,5755,82068
Miscellaneous manufactured articles703,910488,04669
Furniture and parts thereof27,00613,65751
Apparel and clothing676,578474,38970
Footwear32615949
Other188,986151,17980
Total, f.o.b.1,484,073932,45363
Source: Department of Customs and Excise, Swaziland.
Source: Department of Customs and Excise, Swaziland.
Table 39.Swaziland: Main Imports and Share of South Africa, 2003
Total ImportsImports from

South Africa
Share of

Imports from

South Africa

(In percent)
(In thousands of U.S. dollars)
Standard International Trade Classification (SITC)
Food and beverages174,915167,34485
Live animals11,47611,474100
Dairy products19,83018,22192
Vegetables21,31920,45796
Cereals5,4734,25678
Flour, malt, and gluten59,02856,65496
Sugar000
Bread and pasta18,73518,733100
Juice and jams9,9479,87499
Ice cream, sauces, and soups8,0508,00399
Beverages21,05719,67293
Chemicals and fuels306,101298,00095
Inorganic chemicals16,42816,16098
Pharmaceuticals24,03920,75386
Fertilizers13,70613,700100
Toiletries and perfumes54,35054,219100
Soaps, polishes, and wax17,14817,120100
Gelatin and adhesives1,5601,32985
Plastics42,65838,61191
Fuels (coal and petroleum)136,212136,108100
Manufactures classified by materials135,173129,45297
Rubber and products thereof16,10915,99799
Wood and products thereof36,86136,689100
Paper products71,87467,22094
Newspaper, printed968966100
Special woven fabrics2,3822,35599
Iron and steel products5,9245,17487
Aluminum products1,0541,052100
Nonmetallic minerals
Machinery, transport equipment, and others541,750483,82089
Nonelectric machinery250,375238,22095
Electric machinery56,25752,27493
Vehicles109,938105,96096
Clothing90,98053,33859
Footwear13,49113,39699
Furniture20,70820,631100
Subtotal1,157,9391,078,61693
Other284,202204,31472
Total1,442,1421,282,93089
Source: Department of Customs and Excise, Swaziland.
Source: Department of Customs and Excise, Swaziland.
Table 40.Swaziland: Summary of the Tax System as of December 31, 2005(All amounts in emalangeni)
TaxNature of TaxExemptions and DeductionsRates
A. Central government
1. Taxes on net income and profits
1.1 Taxes on companies
1.11 Company income tax (normal tax). Income Tax Order, 1975, as amended.Annual income tax is levied on taxable income derived from sources in Swaziland, or deemed to be in Swaziland, by all companies, foreign or domestic, public or private. Agricultural cooperatives, insurance societies, and public utility companies are also considered companies for taxation purposes. Taxable income is defined as gross income (excluding capital receipts, and foreign and exempt income) less allowable deductions (including loss offsets) incurred in the process of production in Swaziland. The assessment year ends June 30 and tax (less provisional tax payments detailed below) is payable annually. Company tax legislation is integrated with personal income tax legislation. Consequently, where exemptions, deductions, and allowances normally appropriate for persons are appropriate for a particular company, these may be claimed (see 1.21 below). For farming companies, net change in livestock and produce held is deemed income (except for companies that opted otherwise under previous tax laws) and will be valued at purchase price or current market prices, whichever is lower. Provisional tax: a system of provisional taxation is in operation in respect of all companies, directors of private companies, and any person whose income, other than remuneration under the PAYE (pay-as-you-earn) scheme, exceeds E 1,000 per annum. Provisional taxpayers pay provisional tax on account of their final liability for normal tax for the year. The advance payments are to be made as follows:

(a) on or before the last day of the six months of the year of assessment, one-half of the tax payable on the estimated income for the year; and

(b) on or before the last day of the year of assessment, the total taxes payable on the estimated income for the year less the amount of the previous provisional tax payment. The estimated income for the year will normally not be less than the taxable income in the preceding year of assessment. In the case of a company, the year of assessment will be the year in respect of which its financial accounts are drawn up. Farmers are required to make one payment of provisional tax on or before the end of the year of assessment on the estimated income for the year. As an introductory measure, a “phasing-in” period of five years is provided for payment of provisional tax. One-fifth of the provisional tax due for 1985/86 would be payable in that year and so on until full provisional tax payments are due in 1990/91. In terms of the provisions of the Income Tax (Amendment) Act of 1994, all companies that are provisional taxpayers are required, in addition to the two existing provisional tax payments mentioned above, to make a third payment for year of assessment. This final payment is due six months after the close of the year of assessment, by which time the company will be in a position to accurately estimate its taxable income.
Exemptions include, inter alia, dividend receipts of companies, receipts and accruals (including those from investments) of life insurance companies, pension benefits or provident funds. Also excluded are the noninvestment profits of societies and associations that are derived solely through transactions with individual members.



A new business engaged in a manufacturing industry that is not already in existence in Swaziland or, with effect from July 1, 1987, any business that is predominantly engaged in exporting goods from Swaziland is exempt from normal tax for the first five years unless the cumulative taxable income less cumulative local wage bill exceeds 150 percent of the value of the assets, in which case the excess shall be taxed. The Minister of Finance makes the final decision on whether a business is new, engaged in a manufacturing industry, is not already in existence in Swaziland, or is predominantly engaged in exporting goods from Swaziland.



Where the Minister of Finance is satisfied that a new business is beneficial to the development of the economy, he may, with prior approval of cabinet, declare that business a development enterprise, and he may issue a “development approval order” in respect of that business’s granting additional tax concessions to it.



Deductions allowed include expenditures and losses incurred in the production of income (excluding capital expenditures and dividend payments), interest charges, “reasonable” depreciation allowances for plants, and 4 percent for buildings used in production, along with actual expenditures on repairs and maintenance. Any grant made to the University of Swaziland for the purpose of the university’s undertaking capital projects in the form of buildings, fittings, and furniture, as well as other items associated with capital assets needed for the development of the university is exempt. An amount spent by a company as direct “listing” fees on the Swaziland Stock Exchange, subject to the proviso that only one-third of the expense is claimable in the year of expense; the balance is spread equally in the next two years.



Contributions to pension schemes are limited to 20 percent of employee remuneration and annuities (less employees’ contribution) up to E 1,750 per employee. The total contribution by a taxpayer to retirement annuity funds is limited to the greatest of (a) 15 percent of taxable income accruing to the taxpayer in respect of trade carried on by him, provided such amount shall not exceed E 5,000 per annum; or (b) E 3,500 less contributions made by the taxpayer to a pension fund; or (c) E 1,750. All expenses relating to the training of Swazi employees are also deductible (in effect 200 percent) for taxpayers engaged in an industry gazetted by the Ministry of Finance with approval of the scheme by the Commissioner. Expenditures, direct and indirect, for research related to production are also deductible at the rate of annual cost or 4 percent of the total contract value, whichever is greater.



Initial allowances are available for machinery or plants, infrastructural machinery, or facilities, including transmission equipment, and lines and pipes qualifying for wear-and-tear allowances as well as for buildings housing such machinery or plants and used by the taxpayer for the first time in a manufacturing business at the rate of 50 percent granted in the first year of assessment during which the machinery or plant or building was first used.



Companies that are considered approved companies in the handicraft and cottage industry sector and companies considered to be engaged in the export of products from the handicraft and cottage industry sector (“export trading houses”) are permitted to deduct from income (i.e., in addition to the normal amounts permitted under the General Deduction Formula) additional amounts of 133 percent (for the cottage industry) and 150 percent (“approved export trading houses”) in respect of “approved export promotion expenditure,” as defined. The additional expenditure allowance is subject to the company’s achieving an increase in volume of exports in the subsequent year.



Contributions, whether in cash or in kind, made during the year of assessment toward any national disaster scheme established by the government.



Farming: special (100 percent) deductions (not exceeding 30 percent of gross income) are allowable for a variety of on-farm expenditures (e.g., irrigation and fencing). Where these deductions are made, initial and depreciation allowances are not allowable.
(a) Companies: 30 percent of taxable income.



(b) Companies granted development approval order: 10 percent of taxable income.
1.12 Casino tax. Casino Tax Act, 1963, (Act No. 56, 1963, as amended).With effect from July 1, 1985, it is composed of an annual license fee and of a levy based on a percentage of the gross gaming room takings of the licensee less any amount paid out as winnings to casino patrons and is payable on an annual basis. A licensee is liable to normal tax.(a) The annual license fee is E 2,000.



(b) A levy payable on the gross gaming room takings of the licensee less any amount paid out as winnings to casino patrons, as follows:

  • In respect of the first year of operation of the casino, no levy shall be paid.
  • In respect of the second, third, fourth, fifth, and sixth years of operation of the casino, a levy of 2.0 percent shall be paid.
  • In respect of the seventh year and subsequent years of operation, a levy of 4.5 percent shall be paid.
1.21 Individual income tax (normal tax). Income Tax Order, 1975, as amended.This is payable, subject to the deductions and exemptions noted, on income received by or accruing to all persons from sources within Swaziland or deemed to be within Swaziland. Tax is payable on assessed “taxable income,” which is equal to gross income (excluding capital receipts and exempt income) less losses and allowable deductions. Taxable income includes, inter alia, annuities, wages and salaries, rent investment income, and benefits in kind (e.g., free housing). After the calculation of taxable income and, hence, tax payable, certain “tax abatements” may be deducted where applicable. With effect from July 1, 1991, both men and women are subject to a uniform system of taxation. (See below under “rates.”)



Employees are subject to a monthly withholding at source; other taxpayers are assessed annually. Nonresidents are liable for income tax on income earned in Swaziland (including benefits in kind received for services rendered); however, dividends and interest payments are subject to special taxes (see 1.31 and 1.32). Personal income tax legislation is integrated with company tax legislation. Consequently, where exemptions, deductions, and allowances normally appropriate for companies are applicable to persons (e.g., owner-occupied farms), these may be claimed. For farmers, net change in produce and livestock held is deemed income (except for those farmers who opted otherwise under previous tax laws) and will be valued at the lesser of the purchase price or current market price (if purchased), and at standard book valuation otherwise.



A system of provisional tax is in operation in respect of self-employed persons and other individuals whose income, other than remuneration subject to PAYE, exceeds E 1,000 per annum (see 1.11 above). One of the important amendments introduced in the Income Tax (Amendment) Act No. 6 of 1994 was the introduction of the Final Deduction System (FDS) for employees, which came into operation on July 1, 1993. FDS constitutes a final liability to tax and is related to a full year of assessment. All employees, no matter how much they earn, are subject to the FDS, provided they have not derived any other taxable income during the year of assessment. Such employees are not required to furnish an income tax return if the income consists solely of employment income that is subject to FDS.
Exemptions include, inter alia, every person who is ordinarily resident in Swaziland whose taxable income in one year of assessment does not exceed E 20,000 per annum. Other exemptions include the following: salaries of U.K. and South African civil servants; consular personnel not permanent residents of Swaziland; war pensions and gratuities; the first E 1,000 of interest income received by or accrued to an individual from a deposit in a financial institution; interest received by nonresidents from Swaziland government securities and bonds; and capital sums due from a provident fund or benefit fund (pension one third of the total value of the annuity to which any employee becomes entitled may be commuted for a single payment); capital sums in commutation of a retirement annuity; gratuities to a maximum of 25 percent of total remuneration in respect of services rendered prior to 1 July 2001. Severance allowance or notice pay payable under the Employment Act to an employee on the termination of his services is exempt from normal tax. The first E 30,000 received by or accrued to an individual on retrenchment or retirement.



Dividends received by nonresidents (see 1.32 below).



Deductions include, in addition to those for companies (1.11 above) where appropriate, employee contributions to pension funds (maximum E 1,750 where the pension fund is not established by law).



Death, accident, sickness, or unemployment insurance and contributions to provident and benefit funds (other than a medical aid fund) are also deductible at a rate of 10 percent to a maximum of E 180. To receive this deduction on death, accident, and sickness insurance premiums on policies entered after July 1, 1974, the policy must be with the Swaziland Royal Insurance Corporation.
Taxable income (in emalangeni)Marginal tax rate
(In percent)
0 – 20,0000
20,000 – 30,00012
30,000 – 45,00020
45,001 - 60,00025
60,001 - 75,00030
75,00033
Tax credit E2400 p.a.
Trust income
33 percent of taxable income
Rates of normal tax in the case of a retiring or redundant individual
Taxable income taxMarginal
(in emalangeni)rate (In percent)
*3 0 000 - 60 00012
60,001 – 90,00019
90,001 – 120,00026
120,00133
*Income Tax (Amendment) Order 2003
1.22 Graded tax. Graded Tax Act of 1968, as amended.This tax is payable by all persons (apart from the exemptions noted) resident or domiciled in Swaziland, and is thus akin to a head tax. Tax is determined on the basis of gross income and is payable annually for all except for employees whose deductions are made monthly at source.Exemptions include all persons under the apparent age of 18, women earning less than E 15 per month, visitors, students, and the chronically ill.
Tax due is determined on the basis of gross income as shown below:
Gross incomeTax payable
E 0 - E 299E 4.20
E 300 - E 449E 6.00
E 450 - E 600E 12.00
Over E 600E 18.00
1.31 Tax on nonresidents’ interest receipts. Income Tax Order, 1975, as amended.This tax is payable by persons or the estate of a deceased person not resident in Swaziland or a company not registered in Swaziland on accrued interest where the debtor (person or company) is domiciled in Swaziland. The recipient is legally liable for the payment of this tax within 14 days of the accrual of interest, but it is normally paid by the debtor and deducted from interest remitted.Exemptions: interest on loans specifically exempt by government (usually government and other public body loans); building society shares; interest from loans to agricultural cooperatives and public utilities established by parliament; interest received by church, charitable, or educational organizations; and interest amounting to E 20 or less in a full tax year. Also, interest on importers’ bills or notes is exempt where these have been handled through the banking system.Tax is payable at 10 percent of the interest accrued.
1.32 Tax on nonresident shareholders. Income Tax Order, 1975, as amended.This tax is payable by persons or the estate of a deceased person not resident in Swaziland or any company not registered in Swaziland on dividends received from a company domiciled in Swaziland. This tax is payable on both interim and final dividends and is due within 30 days. Legal liability for payment resides with the recipient, but is normally paid by the payer and deducted from remitted dividends.Exemptions include dividends paid by agricultural cooperatives and dividends received by church, charitable, or educational institutions, as well as dividends accruing to a nonresident shareholder, which the government has, in terms of a written undertaking, exempted from tax.Tax is payable at the rate of 12½ percent where dividends are payable to a company incorporated (but not a branch of company headquartered in a third country) in Botswana, Lesotho, Namibia, and South Africa.



For all other destinations, tax is payable at the rate of 15 percent.
1.33 Tax on branch profits.Tax is payable on the deemed repatriated income of a branch of a nonresident company.No exemptionsTax is payable at the rate of 15 percent.



A rate of 12½ percent where repatriated profits are payable to a company incorporated (but not a branch of company headquartered in a third country) in Botswana, Lesotho, Mozambique, Namibia, and South Africa
1.34 Tax on nonresident contractors. Income Tax Order, 1975, as amended.This tax is payable by every person who makes payment to a nonresident person under an agreement relating to construction operations. The tax is deducted from each payment made to the nonresident. The nonresident is not relieved from any obligations to furnish returns for income tax and any assessment raised on the nonresident for income tax will be credited with the nonresident contractors’ tax that has been paid on his behalf.No exemptions.Tax is payable at the rate of 15 percent.
1.35 Tax on nonresident. for Swaziland source services contract. Income Tax Order, 1975, as amended.Tax is payable by all nonresident persons on amounts derived by the nonresident from performance of services that gives rise to Swaziland source income. The tax is payable on gross amount at source by withholding. The tax is a final tax.No exemptions.Tax is payable at the rate of 15 percent.
1.36 Tax on nonresident entertainers and sportsmen. Income Tax Order, 1975, as amended.This tax is payable by all nonresident entertainers and sportsmen who perform in Swaziland. The tax is payable on remuneration or gross receipts of any theatrical, musical, or sports performance where these receipts are received directly by the performers concerned. Legal liability for payment resides with the recipients. However, the payer is legally required to withhold the tax due from any remuneration payable.There are no exemptionsTax is payable at the rate of 15 percent
1.37 Tax on royalties and management charge paid to nonresident persons. Income Tax Order, 1975, as amended.This tax is payable by nonresident persons on gross amount of any royalty and management charge derived from a source in Swaziland. The tax is withheld at source and it is a final tax.There are no exemptions.Tax is payable at the rate of 15 percent.
1.38 Tax on interest paid to residents. Income Tax Order, 1975, as amended.This tax is payable by residents on the gross amount of interest derived from every financial institution. The tax is withheld at source. It is a final tax.There are no exemptions.Tax is payable at the rate of 10 percent.
1.39 Withholding tax on dividends paid to resident personsTax is payable by a person (other than a company) resident or carrying on business in Swaziland.There are no exemptions.Tax is payable at the rate of 10 percent.
1.40 Tax clearance certificates.A system of tax clearance is in operation. In terms of a gazette regulation published recently, tax clearance is presently needed for the issue, renewal, or transfer of any license, other than renewal of motor vehicle licenses, or similar document relating to any trade, business, profession, or vocation; the transfer of immovable property or any endorsement to any title deed having the effect of transferring property; the registration or deregistration of a company; first registration of motor vehicles in Swaziland; and the tendering for the provision of goods or services to the government or a parastatal body, in excess of E 5,000.
2. Social security contributionsNone.
3. Taxes on property
3.1 Real estate taxesSee 3.42.The rate of tax varies with the size, or dutiable value, of the estate. The formula for determining the rate is as follows: for every E 200 (or part thereof) in dutiable value, the tax rate rises by 0.015 percent. This is subject to a maximum tax rate of 33⅓ percent (reached at a dutiable estate value of E 445,667).
3.2 Tax on unutilized land

Land Tax Order, 1974, King’s Order-In-Council No. 35, 1974.
This tax, which came into force on June 1, 1975, is levied by a Land Taxation Board on land deemed underdeveloped after a hearing initiated by the Minister of Agriculture (for agricultural land) or the Minister of Local Administration (for urban land). Tax may be levied on all or part of a property owner’s land.
3.3 Death and succession duties

All death and succession duties under the Death Duties Act, 1942, were abolished by the Death Duties (Repeal) Act, 1985.
3.4 Property transfer tax
3.41 Transfer duty, Chapter 107 of the Laws, Revised Edition, 1959.Duty is levied on the sale or long-term lease of fixed property situated in Swaziland. The person liable for payment of the tax is the party acquiring title to the property, or entering into a lease of 25 years duration (or longer), or entering into the lease of a claim for mineral rights for any period. The base for this tax is the value of the property being acquired or leased.Exemptions include, inter alia, transfers of property by gift for public, municipal, religious, or charitable uses. Also, government purchases and purchases by public hospitals (for the sole use of the hospital) are exempt. Additionally, settlement of jointly owned property between married persons upon divorce, or on the death of one party, is exempt.The rate of this duty is 2 percent on the first E 40,000 of transferred property value and 4 percent of any additional E 20,000 and 6 percent on the residual.
3.42 Mineral rights tax. Mineral Rights Tax, Order No. 34, 1973.Holders of mining rights are subject to taxes with respect to properties able to produce precious and nonprecious metals to which they hold rights. There are three distinct taxes that are grouped together: (a) a tax on the transfer of mining rights; (b) a ground tax on mineral rights; and (c) a capital gains tax.None.(a) Transfer of mining rights is taxed at the rate of 27½ percent on the first E 20,000 of transferred value and 37½ percent above E 20,000.



(b) The tax on unexploited rights is E 10 per ha. in each of the first five years, rising to E 50 per ha. thereafter, if there has been no exploitation.



(c) The tax on gains from shares in mineral rights is 37½ percent of that gain.
4. Taxes on goods and services
4.1 Sales tax Sales Tax Act (Act. No. 12 of 1983).A tax levied at the import and manufacturing levels. To be collected on certain services and all goods other than those specifically exempted. Where payable on goods imported from outside the customs union area, valuation is 110 percent of customs value plus customs duties payable. Proceeds received are directly paid to the Swazi government, and are not paid into the SACU pool.Many exemptions: necessities and intermediate goods for manufacturing are all mostly exempt along with certain medical supplies, temporary imports, certain personal imports, electricity, etc.14 percent on imported and locally manufactured or produced goods.

25 percent on all kinds of alcoholic beverages (imported or locally brewed), except traditional beer.

14 percent on traditional beer.

14 percent on accommodation let & food supplied by hotels or restaurants.

20 percent on locally manufactured tobacco products.

25 percent on imported tobacco products.
4.2 Selective excises Customs and Excise Act (Act No. 21 of 1971).Specific duties are payable by the importer or manufacturer of beer, tobacco, and cigarettes. Rates are those set by South Africa, with proceeds pooled under the Customs Union Agreement.Exemptions are extended to exported goods.Rates of excise duty are mostly specific. Examples of these rates include the following:

(1) malt beer 340 ml E 43.57;

(2) Sorghum beer 1 liter E 82;

(3) Spirits (average) 750 ml E 1,184.00;

(4) Sparkling wine 1 liter E 227.60;

(5) Fortified wine 1 liter E 182.50;

(6) Unfortified wine 1 liter E 80.70;

(7) Cigarettes 20 E 350.80;

(8) Pipe tobacco 25 grams E 131.30.
4.3 Business and professional licenses Trading Licence Act, 1975.Annual license fees are charged for betting shops, companies with a place of business in Swaziland, persons or companies trading in Swaziland, and establishments licensed to sell or serve liquor.None.Annual fees areas follows:

  • Betting licenses are charged on the basis of annual turnover.
  • Company license fees vary from E 20 per annum for companies with a share capital of less than E 10,000 to E 200 per annum for companies with a share capital above E 50,000.
  • Trading licenses are subject to a wide variety of rates, depending on the trade carried out, but are generally between E 50 and E 5000 per annum (amended schedule, April 2005).*The Trading Licences (Amendment of Schedule B) Regulations 2003
  • Liquor licenses vary in cost between rural and nonrural areas, with the type of establishment, and the type of beverage sold; they are between E 25 and E 750 per annum.
4.4 Motor vehicle taxes
Motor vehicle license fees. Road Traffic Act, 1965.License fees are levied on an annual basis. Rates vary with both the type and weight of the vehicle.None.*Annual fees for motor vehicles are:



Motorcycles E60.00;

Motorcycles (with sidecar) E 60.00;

Tractors E 60.00;

Tractors (with trailer) E60.00;

Earthmover E 150.00.
Other vehicles (by weight):
KilogramsEmalangeni
1-1,00070-100
1,001-2,000110-145
2,001-3,000170-220
3,001-4,000235-290
4,001-5,000300-345
5,001-6,000360-405
6,001-7,000420-465
7,001-8,000480-525
8,001-9,000555-585
*The Road Traffic (Amendment of Schedule) Notice, 2004
4.5 Fuel oil levyLevy on petroleum products.Exemptions for projects initiated at regional level like Southern African Development Community (SADC).
Fuel tax40 cents per liter.
Exemption on fuel used by rail and diplomats and His Majesty and the Indlovukazi (Queen Mother)
Fuel oil levyAs above.10 cents per liter
Motor Vehicle Accident (MVA) FundAs above.18 cents per liter
Sales taxAs above.Customs & excise 4 cents per iter; Sales tax 14 percent of import parity (changes are usually undertaken anytime deemed necessary).
5. Taxes on international trade and transactions
5.1 Duties on imports Customs Union Agreement, 1969 Legal Notice (No. 71 of 1969) and Customs, Fiscal, Excise, and Sales Duties Act, 1971 (Act No. 21 of 1971).A common taxation system is levied on imports in conjunction with Botswana, Lesotho, Namibia, and South Africa. Import duties are levied at the point of entry into the common customs area and thereafter the imports are free to move within the entire area. The importer is legally liable for the payment of these duties, the proceeds of which are pooled and divided among the countries according to a formula. Duty rates are set by South Africa on the basis of the six-digit Harmonized Commodity Description and Coding System. The rate structure includes general and most-favored-nation clauses. Most duties are ad valorem with specific duties on some items.Rebates, remissions, and refunds of import duties are allowed in some cases (mostly for raw materials and semi-manufactures). As with duty rates, such rebates must conform to South African rebates.There are 45 ad valorem rates, ranging from 0 to over 70 percent.
5.2 Taxes on exports
5.21 Sugar levy. Sugar Export Levy Act No. 4 of 1997.The sugar export levy is a tax on all sugar exported from Swaziland to the EU. The levy is collected from the millers and growers by the Swaziland Sugar Association (SSA), which then remits it on a quarterly basis to the government.None.The levy is on the net ex-mill protocol sales to the European Union to be applied two years in arrears. Net ex-mill export protocol sales proceeds are the Swazi currency equivalent of the gross amount received by the association in respect of all sales of sugar exported, less expenses as prescribed in the act and is payable on a quarterly basis.
5.22 Cattle export slaughter tax. Details not available.No longer enforced, but not yet repealed.
6. Other taxes
6.1 Stamp taxes Chapter 100 of the Laws, 1959. The Stamp Duties Act, 1970 (Act No. 37) and 1974 (Act No. 13), as amended by the Finance Act of 1985.These taxes, which are mostly ad valorem with some specific taxes, are payable on a wide range of legal documents (affidavits, bills of exchange, checks, bonds, contract notes, receipts, property transfers, etc.).Government and specified public enterprises.Stamp duties vary considerably. For example, checks carry a 6 percent stamp duty, receipts for payments of E 2 or more carry an E 0.10 duty, customs bills of entry an E 0.40 duty, and affidavits, agreements, and contracts an E 1 stamp duty.
6.2 Miscellaneous licenses

The Registration of Dogs Act, 1953, as amended by the Finance Act, 1985.
These are charged for dog licenses.None, but the law is not enforced; however, it has not been repealed.Dog license tax is E 1 per annum in rural areas and E 3 per annum in urban areas.
B. Local taxes

Property tax. Legal reference not available.
Taxation in the form of rates is collected in the two principal towns (Mbabane and Manzini). Land and improvements are taxed at different rates with quinquennial valuation assessments. If changes in tax rates are desired by the town councils, approval is required by the central government before such changes can be enforced.Exemptions include government-owned property.Rates are assessed at 4 percent of the land value and 0.5 percent of the value of improvements in both towns.
Urban Government Act 1969 & City Council of Mbabane (Service Charges) By-Laws 2002/03.Various user fees – (Mbabane used as an indicative town council).See Rating Act 1995 for exemptions from trading license inspection.Various rates are as follows: clearance certificates E37.00;

admin. fees (residential) E47.00 – E326.00;

admin. fees (commercial) E93.00 – E1,026.00;

copies of valuation roll E6.50 – E875.00; animal pound E40.00–E75.00;

parking permit fees E0.16–E 0.27;



Trading license inspection fees:

Category 1 E0.00 - E85.00;

Category 2 E200.00;

Category 3 E600.00; and

Category 4 E600.00.



Other fees are as follows:

abattoir fees E14.00 – E70.00;



environment monitoring E50.00 – E70.00



markets (selected examples):

Vegetables A & B E180.00 p.a;

Handicraft C E520.00 p.a;

Handicraft D E720.00 p.a;



hire rates for council equipment/plant E80.00 – E250.00;



recreational facilities fees E3.00 – E200,00;



cemetery fees E50.00 – E2,500.00;



refuse removal E10.00 – E210.00;

septic tanker fees E15.00 – E732.00;



building fees E0.50 – E1,500.00; and

advertising E440.00 – E3,300.00.
Sources: United Kingdom Board of Internal Revenue, Income Taxes Outside the United Kingdom, Vol. 7 (1972); International Bureau of Fiscal Documentation, Tax System; International Monetary Fund, Surveys of African Economies, Vol. 5; and Swaziland, Government Information Services, A Handbook to the Kingdom of Swaziland, various years, updated by the Swazi authorities.
Sources: United Kingdom Board of Internal Revenue, Income Taxes Outside the United Kingdom, Vol. 7 (1972); International Bureau of Fiscal Documentation, Tax System; International Monetary Fund, Surveys of African Economies, Vol. 5; and Swaziland, Government Information Services, A Handbook to the Kingdom of Swaziland, various years, updated by the Swazi authorities.
1Prepared by Jacob Gons.
2CMA members include Lesotho, Namibia (since 1990), South Africa, and Swaziland. SACU members include the CMA countries plus Botswana.
3A more complete description of CMA’s features is contained in the Appendix.
4In Swaziland, the rand was reinstated as legal tender in 2003, after a 17-year interruption.
5These linkages are facilitated by the fact that from the four banks that comprise Swaziland’s banking system, three (holding some 80 percent of banking system assets) are South African. These banks’ liquidity is managed through their respective head offices.
6See Humpage and McIntire (1995).
7Using the following equation to summarize the CBS’s balance sheet: M=NFA+NDA, where M represents base money, and NFA and NDA represent net foreign assets and net domestic assets, respectively.
8This sub section does not discuss the benefits deriving from Swaziland’s membership in the Southern Africa Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA). As yet, these benefits are relatively small.
9See USAID (2004).
10 Thus, for given foreign input costs, the cost of finishing garment products (the “cut, make, and trim” phase) could be at least 30 percent higher in Swaziland than in a country not receiving these preferences, at the same after-tariff import costs.
11Since EU access rules do not contain the equivalent of AGOA’s “third party fabric provision,” garment exports to the EU have been very small.
12Under the ATC, which superseded the Multifiber Arrangement (MFA), these bilateral quotas were to be eliminated in four phases over the period 1995–2005 (1995–98; 1998–2002; 2002–04; and the beginning of 2005). The last ATC phase was expected to have the largest impact because it applied to products that were highly quota constrained and that account for the bulk of Swaziland’s exports.
13The real effective exchange rates were calculated on the basis of 2002 data on partner country weights that reflect each country’s relative share in Swaziland’s trade (imports plus exports), and using Swaziland’s consumer price index (CPI). An alternative and more appropriate methodology, given the focus on cost competitiveness, would have been to use unit labor costs, but data limitations prevented this.
14 The share of the U.S. dollar in Swazi exports is estimated at 35 percent, with about one third of that amount concerning exports to the U.S. However, exporters invoicing in rand would still have experienced a profit squeeze since, in setting prices, their customers would have factored in the lilangeni’s appreciation.
15USAID (2004), page 11, refers to a 50 percent higher productivity in Vietnam’s garment sector.
16Currently, available incentives are scattered in several enactments, and responsibilities are shared among various ministries.
17 The cost of shipping a container from Hong Kong to Durban averaged between 2,500–3,000 rand. From Durban to Swaziland, the cost of inland transport averaged between 7,000–10,000 rand.
18Paragraphs 26–28 are mainly based on Southern Africa Global Competitiveness Hub (2004).
19For instance, an investor needs a Trading License to get an Entry (Work) Permit, which can only be obtained if he has a Trading License.
20Another reason for the decline in Swaziland’s international reserves relates to the domestic financing of fiscal deficits (see next chapter).

Other Resources Citing This Publication