By Staff Reporter
PRIME Minister Russel Mmiso Dlamini asserts that a 12% economic growth rate is attainable through collaborative efforts and innovative funding strategies.
His remarks were made during a debate on the recent Policy Statement, where he highlighted the importance of unity and creativity in addressing the nation’s economic challenges.
“A 12% economic growth rate is within our reach. If we come together, we can achieve double-digit growth.
This policy is grounded in research, and strategic investments in infrastructure are crucial to reaching this ambitious goal,” Dlamini stated, eliciting a blend of optimism and scepticism among lawmakers.
Emphasizing the need for a reformed governmental approach to economic management, Dlamini encouraged MPs to adopt creativity and innovative fundraising strategies, noting that “the funding for the Grand Plan will not solely rely on the Government.”
His comments reflect an acknowledgment of the limitations of traditional funding methods, suggesting a shift towards partnerships with private sector stakeholders and potential foreign investments.
The Prime Minister highlighted the vital role of infrastructure in driving economic growth, advocating for targeted investments that would foster sustainable development and create more job opportunities.
“Collaboration between the government, private enterprises, and the public is crucial. We must cultivate an investment-friendly environment where innovation can flourish,” Dlamini emphasized.
Public-private partnerships (PPP) have proven successful in completing various global projects and generating job opportunities where implemented.
Many countries are currently exploring this approach, enabling governments to execute projects without facing overwhelming financial pressures within a single fiscal year.
Eswatini has already benefitted from such a partnership. The successful completion of the Gege-Sicunusa road demonstrates the potential for cooperation between the private sector and government for the common good.
Inyatsi Group Holdings Investment Cluster Chief Executive Officer Paul Lwiindi noted earlier this year that the project’s success stemmed from a strong partnership with the Government of Eswatini, with both entities relying on each other for financial and other resources.
Notably, Inyatsi Construction secured funding valued at E647 million for the project at competitive rates, with repayment scheduled over the next decade by the Government of Eswatini.
“This project exemplifies a unique partnership between the private sector and the government. The PPP model is the first of its kind in the Kingdom and showcases the possibilities when both sectors collaborate to provide services to the community.
PPPs involve cooperation between a government agency and a private company, facilitating the financing, construction, and operation of infrastructure assets such as public transport networks, parks, and convention centres,” Lwiindi explained.
He further stated that long-term financing is transforming the construction landscape across Africa, particularly in fiscally constrained environments.
“Public-private partnerships generally have contract durations ranging from 10 to 30 years or more. Financing is partly sourced from the private sector, requiring payments from the public sector or users throughout the project’s lifecycle.
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The private partner is involved in designing, completing, implementing, and funding the project, while the public partner is focused on defining and monitoring compliance with objectives.
Risks are shared between public and private partners through negotiated agreements,” he clarified.
According to the Infrastructure Consortium for Africa, Public-Private Partnerships (PPPs) are increasingly recognized in Africa as essential mechanisms for designing, building, financing, and/or operating infrastructure facilities traditionally provided by the public sector.
Constraints on public sector resources, increasing pressures on government budgets across Africa, and concerns regarding the efficiency of state-run services have prompted many governments to enhance their efforts in fostering partnerships with the private sector.
From the private sector’s viewpoint, PPPs are increasingly recognized as an effective means to mitigate risks associated with privately financed and managed projects in Africa.
Engaging public sector partners can help address bottlenecks that lead to delays and complications.
During the debate, Dlamini urged Parliamentarians to focus on the broader vision and long-term advantages of economic growth, rather than short-term political interests.
His vision aligns with global trends that emphasize comprehensive infrastructure development as a catalyst for economic expansion.
As Parliament deliberates on the proposed policies, many MPs have expressed cautious optimism, while others warn that achieving such ambitious targets will necessitate meticulous planning and execution.
Concerns were raised regarding potential budget constraints and the need for transparent accountability measures to ensure the judicious use of funds.
MPs Call for Pragmatic Solutions
Legislators voiced concerns about the feasibility of the proposed economic growth and the pressing need for practical solutions to national issues.
Addressing the House, Sithobelweni MP underscored the importance of prioritizing food security at the grassroots level before investing in high-end facilities.
His statement received support from fellow legislators who echoed the sentiment that immediate community needs should come first.
Lobamba Lomdzala MP, Marwick Khumalo, was notably critical of the PM’s optimistic economic growth forecasts, stating, “We can barely achieve 5% growth.
What the Prime Minister is proposing in the Policy Statement is unrealistic.” Khumalo, identifying as a realist, argued that the goals outlined in the statement are unattainable without a solid plan and financial backing.
The need for a comprehensive overhaul of existing policy frameworks was a recurring theme, with Ntfonjeni MP Raymond Dlamini emphasizing the crucial role of infrastructure development in improving healthcare access in rural areas.
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Dlamini advocated for reevaluating the distribution of health centers and stressed the importance of investing in agricultural infrastructure, asserting that constructing dams could significantly enhance food production.
He also called for increased government funding for the education of Orphaned and Vulnerable Children.
Meanwhile, Lobamba MP Micheal Masilela expressed frustration at the slow pace of parliamentary proceedings, urging the PM to expedite legislative actions to address urgent public health crises.
“People are dying in hospitals while we stand by. We rely on you, PM,” Masilela stated, demanding actionable solutions rather than mere ministerial statements.
Matsanjeni South MP Sabelo Ndlangamandla reiterated the necessity for concrete plans backed by appropriate budgets, cautioning that “a goal without a plan is merely a dream.”
He highlighted the significance of infrastructure development for job creation and economic stimulation.
Shiselweni Regional Legislator Lindiwe Mamba urged the PM to address ongoing complaints from the University of Eswatini (UNESWA) to ensure that higher education standards are upheld.
Khubutha MP Mzwandile Mamba criticized the PM’s Policy Statement as more theoretical than practical, asserting that the 12% economic growth target seems unattainable given the current service delivery rate of just 0.35%.
Concerns regarding corruption were raised by Mafutseni MP Sabelo Mtetwa, who called for lifestyle audits among public officials to combat graft.
“Invite us to assist you. Ignore the backlash from every direction; it’s part of the journey,” he remarked, emphasizing the importance of collaborative governance.
He also urged immediate approval of the remaining E30 million for the Luke Commission, recognizing its crucial role in providing health services nationwide.
Despite the skepticism, the PM affirmed that the government is on track to fulfill its plans and is making progress, claiming that 40-50% of its objectives have been achieved.
He welcomed the questions and statements made by MPs, stating, “All the questions directed to the statement are constructive and I appreciate them, along with the debate as a whole.
Let me clarify that the policy statement outlines a problem. This problem was articulated at Sibaya, where emaSwati expressed significant challenges that have persisted for years.
We have witnessed an increase in poverty levels and worsening unemployment, alongside declining institutional strength.”
He emphasized the need to address the concerns raised during Sibaya and seek viable solutions. The Premier noted that the policy statement serves as a vehicle for addressing these issues, and it should be accompanied by an action plan.
“Let’s take a different approach. If we aim high, we can reach incredible heights. Here we are, setting lofty goals. Even achieving 50% of this target could transform our country.
As emaSwati, we have undervalued ourselves for too long. We often dismiss our initiatives as unworkable, while we readily embrace foreign ideas, regardless of their shortcomings,” he concluded.