FURORE OVER SOUTH AFRICA’S BAILOUT FOR SWAZILAND
By Funke Atohengbe

 

The decision by South Africa to bail its neighbour, Swaziland out of financial troubles by granting it a loan of two point four billion Rands, about three hundred and thirty three million US dollars, came as a shock to many. Antagonists of the gesture consider it as an unnecessary act of magnanimity and an avenue for King Mswati III to further promote his ostentatious life style.

King Mswati turned to the South African government after the African Development Bank (ADB) and the International Monetary Fund (IMF) turned down his pleas for a bail-out on the grounds that Mbabane had failed to implement fiscal reforms specified in the lending conditions.

While many South Africans are quick to condemn the decision of Pretoria to offer Mbabane a shoulder to lean on because of Mswati’s record of unbridled spending, some others saw it as a way of salvaging a drowning sister nation from economic crisis with the consequences of social crises that could spill over to its neighbours.

Pretoria’s reassurance that Mbabane has not been given a blank cheque to do as it pleases but that stringent conditions have been attached to the loan which it will have to repay in installments through a debit order to the Southern Africa Customs Union made no impact on the opposition and its civil society partners who have continued to call for a reversal of the grant.

Those who were in support of the loan argued among other things that an economic crisis in Africa’s last absolute monarchy could spill over to South Africa as witnessed in the case of Zimbabwe whose nationals flooded South Africa in their thousands as a result of the economic crisis which followed the forceful eviction of whites farmers from their farms.

They also argued that since the economic crunch affected the less privileged, business growth, the civil servants and not the Swazi government or the King, South Africa should apply measures that will help to monitor how the funds are spent to meet the needs of the poor.

The argument put forward by the opposition include the fact that King Mswati as a defacto ruler, may be tempted to help himself and his cronies with the funds leaving the country to sink into deeper economic quagmire.

Even inside Swaziland, there are oppositions including the Swazi Solidarity Movement which along with trade union organizations have been pushing for reforms and the dethronement of king Mswati, whom they accused of leading an extravagant lifestyle while his people are being ravaged by HIV and AIDS with an average daily sustenance of less than a dollar.

The loan notwithstanding, political and economic crisis in Swaziland reached a boiling point in April this year when trade unions, pro-democracy activists and opposition parties took to the streets to protest the king’s autocratic rule and his refusal to unban all political parties.

The protests which saw some of the country’s notable politicians joining the opposition were what those opposing the bailout thought would have precipitated social crises that could have brought Mswati to his knees thus prompting the long awaited political reforms to the satisfaction of South Africans and the Swazis.

But allowing the situation to get out of hand would have created a stalemate and certain unpleasant developments which could see Pretoria taking on a more demanding responsibility than it bargained for.

The South African Finance Minister, Pravin Gordhan said as much in defence of the grant. He said Swaziland would be expected to promote democracy, respect for human rights and good governance, develop a strong civil society and restore credibility as part of the conditions attached to the bail out.

Now that Swaziland has received the grant, it remains to be seen whether king Mswati would adhere to the terms which also stipulates the allocation of a substantial part of it to infrastructural development and introduction of socio-economic reforms.

The international community can’t wait to see the reforms Happen. If they do, King Mswati would have proved skeptics including IMF, ADB and the international community wrong. I would also demonstrate that His Royal Majesty has turned a new leaf thereby laying foundation for direct foreign investments in the Southern African country.

Broadcast on Saturday August 13, 2011

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