Botswana, Swaziland: Sub-Saharan African Bond, Currency Preview

The following events and economic reports may influence trading in sub-Saharan African bonds and currencies today. Bond yields and exchange rates are from the previous session.

Botswana: The southern African country’s central bank will sell bills.

The pula was 0.2 percent stronger against the dollar at 6.744 by 3:10 p.m. in Gaborone. The yield on the 14-day bill was 8.17 percent on Dec. 15.

Swaziland: The government will hold a Treasury bill auction.

The lilangeni was 1 percent weaker against the dollar at 7.64 by 3:16 p.m. in Mbabane. The yield on the 91-day Treasury bill was 6.97 percent on Dec. 16.

Source:bloomberg.com/

Botswana airways-Swazi proposed deal questioned

MBABANE – Questions have been raised over gover-nment’s move to negotiate with foreign airline companies, including Air Botswana, to service Swaziland.

The proposed deal was to possibly replace Swazi Airlink should the need arise following questions that have been raised on its safety.
According to media reports in Botswana, especially the Botswana Gazette online edition, the Tswanas have maintained ignorance on the developments.

The Permanent Secretary in the Ministry of Transport and Communications, Louis Malikongwa said he was not aware of the issue.
“We have not heard anything to that effect and the Swazi Government has not engaged us in talks over the matter. Maybe they are still in the process of coming to us,” Malikongwa said.
Mphi Tlhomelang, who is the Acting General Manager of Air Botswana, acknowledged she had heard the rumour, but there was no official communication, either from Swazi Airlink or the minis- try.

“I will have to get in touch with the ministry to confirm it. The Swazis have not yet come to us, or maybe it was a suggestion and they are still to make a proposal, but as Air Botswana, we are open to discussions,” she said.
Swazi Airlink is 51 per cent owned by the Swazi Government and South African Airlink owns 49 per cent. The reason to negotiate with the two airlines, according to the minister, has been necessitated by the ongoing probe into the operations of South African Airlink.

The questions about Dlamini’s statements come after he was quoted by this publication as having confirmed the ongoing talks, but refused to go into detail on the negotiations.
“We’re engaging Air Botswana and the South Africa Airways as possible alternative airlines to replace Swazi Airlink,” the minister said.

Following that the Tswanas have registered their ignorance on the matter, when the minister was called, his phone was unavailable on the MTN network and when the Principal Secretary Paul Nkambule was called, he said he could not comment on the matter.
His reasons were that if there was something being done the Civil Aviation Authority board would be the best to comment.

Nkambule said since government was in a marriage with Airlink, he did not think it would be right to talk about the matter without involving the company.
When South African Airways headquarters were called, this reporter was asked to leave a message which by the time of compiling this report, had not been returned.

Source:times.co.sz/

Fourth sugar mill for Swaziland

MATSAPHA- Government is currently investigating possibilities of setting up a forth sugar mill in the country.

The proposed sugar mill is earmarked for Sidvokodvo. Currently, Swaziland has three sugar mills namely, the Mhlume, Simunye and Illovo sugar mills.

Minister of Agriculture Clement Dlamini said government had already started with the feasibility study to investigate the possibilities of setting up the sugar mill.

“Government is currently looking at setting up a forth sugar mill in the country because we have realised that farmers need it. We are currently doing a feasibility study of the possibilities of setting up the sugar mill at Sidvokodvo.


Project

“We have heard that sugar cane farmers under the Lower Usuthu Smallholder Irrigation Project (LUSIP) have called for a sugar mill at Siphofaneni partly because they want to reduce the costs associated with producing sugar.

However, as I have said before, it is not possible to establish a sugar mill to accommodate them because Illovo Sugar set aside an expansion programme and they committed E1.4 billion that will accommodate the sugar produced by the farmers at LUSIP. Illovo Sugar wanted assurance that government would safeguard their interest when this commitment was made and we gave it to them so it in this regard that government believes it is not possible to establish a mill for the farmers at LUSIP,” Dlamini explained.
Elaborating on the proposed sugar mill, Dlamini said the proposed site was chosen because it had proven to have arable soil that was suitable for sugar cane growing.


Construction

“Following the construction of a dam near Mkhondvo River, we thought it would be a good idea to establish the sugar mill at Sidvokodvo because the farmers that will use the sugar mill will utilize the water from the dam. In this way, everybody benefits,” he said.

He also said government would rope in experts to assist in the roll-out plan for the establishment of the mill.
“Government will take the lead in this project but we will engage experts to help us in whatever field we need assistance. We are actually working with Tibiyo TakaNgwane on this project and we are looking forward to when the mill is finally opened because it will help a lot of farmers in the country.

We have already started with the feasibility study into the establishment of the sugar mill and we already have investors who are interested in setting up the mill,” he said.

Source:times.co.sz/

Swaziland: New Study Casts Light on Decentralisation in Country

Developing countries around the Commonwealth face a myriad of challenges, not least alleviating poverty and delivering local services to citizens.

A new study from the Commonwealth Secretariat examines the case of Swaziland, a landlocked lower-middle income country in Southern Africa which has made local government decentralisation a major policy objective.

Jacqueline Wilson, Director of Governance and Institutional Development at the Secretariat, says the march away from central governance has taken "centre stage" in Swaziland.

"It is the cornerstone of the government's National Development Strategy," she says. "[Yet] despite these commitments, the real challenge is to effectively transfer managerial and financial powers from centralised ministries to local authorities."

Summary of decentralisation plans

The 'Decentralisation in Swaziland' study, drawn up using materials used at a high-level workshop organised by the Secretariat last year, deals with policy, managerial and implementation issues and provides a summary of decentralisation plans and key legislative milestones in Swaziland's recent history.

International Organisations
The book, which touches on capacity-building efforts, financial decentralisation, the role of traditional leaders and awareness among citizens, also highlights related experiences from Commonwealth countries in Asia, the Pacific, and Africa, including Lesotho and Ghana.

"Decentralisation is a very serious reform process requiring the full commitment of everyone to succeed," explains Swaziland's Deputy Prime Minister, Constance Simelane, in one of the study's chapters.

Dr Munawwar Alam, the Secretariat's Adviser on Sub-National Administration and Government, who edited the study, said: "The book serves as a useful reference for not only Swazi government officials but also for countries that are dealing with local government reforms, especially from Sub-Saharan Africa, to assess reform options suitable for them."

Source:allafrica.com/