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Swaziland: Recent Economic Developments

Author(s):
International Monetary Fund
Published Date:
April 1997
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III. Money and Banking22

A. Institutional Framework

49. The financial system in Swaziland consists of the Central Bank of Swaziland (CBS), five commercial banks, one building society, and other financial institutions. Four of the five locally incorporated commercial banks-Barclays Bank, First National Bank (FNB), Standard Chartered Bank, and Stanbic—are foreign-owned banks, with government minority ownership, except for the FNB. The fifth commercial bank is the Swaziland Development and Savings Bank (SDSB), which is wholly government owned. The FNB, the most recent foreign bank, was established through the purchase of the former Meridien Bank in April 1995. 23 All foreign-owned banks are engaged mainly in short-term credit financing.

50. The SDSB functions as a commercial and a development bank and provides the main source of long-term funding, particularly for the agriculture, livestock, and housing sectors. The performance of SDSB deteriorated sharply in recent years, reflecting substantial nonperforming loans and increased operating costs. Following the assessment of the bank’s financial situation by Coopers and Lybrand, the CBS took over the daily management of the SDSB in May 1995. On March 1, 1996, the African Management Services Company (AMSCO) was appointed to undertake the management of the SDSB. The government has agreed to recapitalize the bank with an estimated amount of E 150 million, including about E 60 million of government deposits held at the SDSB. To this end, the Ministry of Finance transferred to the bank E 30 million in August 1996 and E 83 million in December 1996.

51. Other financial institutions include the Swaziland Building Society, which is the main provider of housing financing; the Swaziland Industrial Development Company Limited, a development finance company established by the government in conjunction with major international development finance institutions; the Swaziland Royal Insurance Corporation, which operates exclusively in domestic insurance markets; and the National Provident Fund, which provides life insurance schemes to private sector employees.

B. Monetary Policy

52. Given Swaziland’s membership in the CMA and the 1:1 peg of the lilangeni to the South African rand, there is limited scope for monetary policy.24 Thus, monetary policy instruments available to the CBS include reserve requirements, liquidity requirements, and treasury and CBS bills. In addition, until May 1, 1996, the CBS maintained a Local Asset Requirement (LAR), which required commercial banks to hold 95 percent of their deposits in domestic assets. The reserve requirement is applied to all banks, and on January 1, 1994, the ratio was raised to 6 percent, from 5 percent. In addition, the CBS imposes a liquidity requirement ratio of 17.5 percent of deposits on all banks, with the exception of the SDSB, which is required to maintain a ratio of 10 percent. Since May 1, 1996, banks have to comply with the liquidity requirement ratio on a weekly average basis, instead of an end-month basis.

53. Over the past several years, the LAR contributed to an accumulation of excess liquidity in the form of excess reserves balances at the CBS. On May 1, 1996, the LAR was abolished and the CBS discontinued remunerating excess reserves. As a prudential measure, commercial banks were required to include a foreign exchange risk component in the calculation of their capital asset ratios, in accordance with the Basle standards, in order to limit their net open foreign exchange positions. In addition, in May 1996, the CBS, in line with international banking practices, stopped accepting time deposits from commercial banks.

54. The monthly auction of treasury bills, which was reintroduced in December 1993, continued throughout 1995-96. In May 1996, the CBS reintroduced the issuance of CBS bills in the amount of E 10 million, in order to absorb part of the excess liquidity. The outstanding stock of treasury bills has since end-1994 remained constant at E 50 million (Appendix III, Table 23). Historically, the commercial banks have held most of the outstanding treasury bills, although, in recent months, nonbank financial institutions have increased their share. The secondary market for government paper is very illiquid and most buyers tend to hold the bills until they mature.

C. Overall Developments

55. Broad money growth averaged 17.9 percent annually over 1991-93 (Appendix III, Table 24), mostly on account of an increase in net foreign assets (NFA).25 NFA rose significantly in 1992, by more than 45 percent, as a result of the creation of the capital investment fund (CIF)—with proceeds accumulated from fiscal surpluses of previous years—and steady inflows of capital 26 At end-1993, though, NFA fell by about E 100 million, to E 904 million, reflecting a pickup in economic activity, adverse developments in the balance of payments, and public financing requirements (Appendix III, Tables 24-26). Credit to the private sector increased by about 22 percent due to rising demand for credit from the construction industry and the post-drought recovering agricultural sector (Appendix III, Table 29).

56. In 1994, broad money grew by approximately 11 percent, as a result of strong growth in domestic credit, including a rise in credit to the government caused by the deterioration in the fiscal situation. The government met its financing requirements, largely by drawing down its deposits with the CBS. This increase in domestic credit growth led to a decline in NFA by about 8 percent. However, the growth of broad money decelerated sharply in 1995, to about 4 percent, because of depressed domestic credit growth and a turnaround in the overall balance of payments position. As a result, NFA rose sharply, by about 25 percent. The decline in domestic credit was primarily due to the decline in government credit, as moderation in government financing requirements led to a buildup of government deposits. The stagnant growth in private sector credit reflected a slowdown in the economy, along with a sharp fall in trade financing. Lending to the agricultural sector declined by 46 percent, which was partially offset by a 15 percent increase in lending to the construction sector.

57. Developments in the first nine months of 1996 mirrored those of 1995. Broad money growth on an annual basis was weak. The major factor for the decline in domestic credit was a substantial increase in government deposits, partly driven by the sale of government shares of the Simunye sugar company and proceeds from the fuel equalization fund (SASOL). A 13 percent decline in private sector credit also contributed to the decline in domestic credit. Consequently, NFA rose markedly, by about 49 percent.

Interest rates

58. Although Swaziland’s interest rates were expected to remain broadly in line with those in South Africa, the country managed to maintain significant negative interest differentials in the past. The difference peaked at end-1989, when Swaziland’s discount rate was

6 percentage points below that of South Africa. These differences were also observed with regard to their deposit and lending rates. The large interest rate differentials between Swaziland and South Africa resulted from the CBS’s policy of keeping its discount rate below that of South Africa and the LAR, which resulted in a buildup in excess reserves (Appendix III, Table 28)27 During 1991-93, Swaziland’s interest rates declined, however, in line with developments in South Africa, and the interest rate differential between the two countries narrowed (Figure 3; and Appendix III, Table 30). In real terms, over 1991-92, Swaziland’s deposit and lending rates were positive. With a rise in inflation in 1993, though, real deposit interest rates turned significantly negative.

Figure 3.Swaziland: Year-End Interest Rates, 1984-961/

Sources: Central Bank of Swaziland.

1/ November data for 1996.

59. The CBS tightened monetary policy in the second half of 1994 and in 1995. The discount rate was raised to 12 percent in October 1994, from 11 percent. Consequently, domestic interest rates offered by banks increased. However, despite the increase in nominal interest rates, real deposit rates remained negative. In 1995, the CBS further tightened monetary policy, raising the discount rate to 13.75 in March, and in July, to 15 percent—a rate equal to that prevailing in South Africa. Consequently, domestic interest rates rose and the interest rate differential between Swaziland and South Africa narrowed. In May 1996, the CBS further raised its discount rate to 15.75 percent, following a rise in the South African discount rate to 16 percent in April 1996. In line with this rise in the discount rate, domestic interest rates increased. Moreover, the removal of the LAR led to a drop in the liquidity ratio to 21 percent by end-June 1996.

Capital market

60. The Swaziland stock market was established in 1990 with a listing of E 24 million in government stocks, as well as an E 15 million issue by the Swaziland Electricity Board.28 Only a handful of companies—including Standard Chartered Bank, Swaziland Spa Holdings Limited, and Royal Swazi Sugar Corporation—have listed their shares with Swazi stockbrokers. Owing to the lack of alternative long-run assets, trading in the market is limited, as investors tend to hold on to their shares. On November 30, 1995, the government issued long-term bonds in the amount of E 30 million. At that time, the issue was under-subscribed and the CBS underwrote the remaining E 20 million. In order to make holding of bonds attractive to commercial banks, the CBS included bonds in the group of assets that may be held to satisfy the liquidity requirement.

Appendix III
Table 1.Swaziland: Gross Domestic Product by Sector of Origin at 1985 Constant Prices, 1990/91-95/96
1990/911991/921992/931993/941994/951995/96
(In millions of emalangeni)
Primary production184.1185.3155.7151.9158.6149.5
Agriculture and livestock143.9154.0120.4114.4118.1109.2
Crop production on SNL 1/43.246.918.429.622.724.1
Crop production on TDL 1/85.685.880.676.083.773.4
Other (SNL and TDL)15.121.321.48.811.711.7
Forestry14.815.013.414.716.116.7
Mining (excluding ore)25.416.321.922.824.423.6
Secondary production469.6473.7496.7509.5535.9557.4
Manufacturing412.1417.5429.0432.9451.9469.0
Electricity and water31.532.636.137.538.538.9
Construction26.023.631.639.145.549.5
Services439.9461.0478.5505.8512.9531.1
Wholesale and retail74.979.172.880.884.193.3
Hotels and restaurants24.418.121.522.326.128.5
Transport42.549.054.055.052.553.9
Communications17.621.722.724.430.623.1
Banking, finance, insurance44.438.239.541.038.035.4
Real estate and other business services39.639.741.543.244.346.1
Owner occupied dwellings31.131.631.932.132.432.8
Producers of government services188.3200.5212.3224.9223.2232.9
Producers of other services 2/18.919.119.420.321.221.9
Imputed bank service charge-41.8-36.0-37.1-38.2-39.5-36.8
GDP (at factor cost)1,093.61,120.01,130.91,167.21,207.41,238.0
Indirect taxes less subsidies216.0221.7227.9237.4245.3251.3
GDP at market prices1,309.61,341.71,358.81,404.61,452.71,489.3
(Annual percentage change)
Agriculture and livestock-3.87.0-21.8-5.03.2-7.5
Forestry0.71.4-10.79.79.53.7
Manufacturing20.31.32.80.94.43.8
Services6.64.83.85.71.43.5
GDP at market prices8.92.51.33.43.42.5
(In percent of GDP at factor cost)
Agriculture and livestock13.213.810.69.89.88.8
Forestry1.41.31.21.31.31.3
Manufacturing37.737.337.937.137.437.9
Services40.241.242.343.342.542.9
Sources: Central Statistical Office; and Economic Planning Office.

Swazi Nation Land (SNL), Title Deed Land (TDL).

Includes forestry, mining, electricity and water, real estate and other business services, and other community, social, and personal services, owner-occupied dwellings less imputed bank service charges.

Sources: Central Statistical Office; and Economic Planning Office.

Swazi Nation Land (SNL), Title Deed Land (TDL).

Includes forestry, mining, electricity and water, real estate and other business services, and other community, social, and personal services, owner-occupied dwellings less imputed bank service charges.

Table 2.Swaziland: Gross Domestic Product by Sector of Origin at Current Prices, 1990/91-95/96

(In millions of emalangeni)

1990/911991/921992/931993/941994/951995/96
Primary production288.4325.4318.2430.8464.3429.0
Agriculture and livestock225.9273.7250.1357.4384.6353.0
Crop production on SNL 1/59.379.230.852.847.549.9
Crop production on TDL 1/134.7142.2170.2279.7294.2260.2
Other (SNL and TDL)31.952.349.124.942.942.9
Forestry21.428.723.425.728230.8
Mining (excluding ore)41.123.044.747.751.545.2
Secondary production741.1815.1912.21,036.41,233.71,317.8
Manufacturing647.3719.3787.0884.41,042.01,092.6
Electricity and water41.242.748.949.861.968.1
Construction52.653.176.3102.2129.8157.1
Services771.8836.91,017.01,187.21,341.71,422.3
Wholesale and retail133.0142.6145.3173.9208.1233.1
Hotels and restaurants47.849.855.861.267.783.5
Transport83.4100.0122.1136.2131.1145.7
Communications22.427.829.438.353.764.1
Banking, finance, insurance107.194.9110.6114.9109.099.3
Real estate and other business services47.051.753.655.757.059.0
Owner-occupied dwellings67.275.280.886.991.392.5
Producers of government services301.9332.2462.3567.0675.1704.6
Producers of other services 2/42.546.853.659.265.467.6
Imputed bank service charge-80.5-84.1-96.5-106.1-116.7-127.1
GDP (at factor cost)1,801.31,977.42,247.42,654.43,039.73,169.1
Indirect taxes less subsidies422.7450.1517.7575.1740.2991.9
GDP at market prices2,224.02,427.52,765.13,229.53,779.94,161.0
Memorandum items:
GDP deflator
(percent change)11.76.512.513.013.27.4
Sources: Central Statistical Office; and Economic Planning Office.

Swazi Nation Land (SNL), Title Deed Land (TDL).

Includes forestry, mining, electricity and water, real estate and other business services, and other community, social, and personal services, owner-occupied dwellings less imputed bank service charges.

Sources: Central Statistical Office; and Economic Planning Office.

Swazi Nation Land (SNL), Title Deed Land (TDL).

Includes forestry, mining, electricity and water, real estate and other business services, and other community, social, and personal services, owner-occupied dwellings less imputed bank service charges.

Table 3.Swaziland: Gross Domestic Product by Expenditure Category at Current Prices, 1990/91 -95/96
1990/911991/921992/931993/941994/951995/96
(In millions of emalangeni)
Final consumption expenditure1,973.32,223.92,524.42,845.73,185.73,745.2
Private1,561.01,749.22,034.32,064.72,311.72,794.2
Government412.3474.7490.1781.0874.0951.0
Capital formation435.9499.6639.8744.2893.2868.3
Gross fixed capital formation419.6477.1614.9715.2859.3830.9
Government159.3294.8338.4330.9349.0290.0
Private260.3182.3276.5384.3510.3540.9
Change in stocks16.322.524.929.033.937.4
Balance of payments for goods and services-185-296-399-360-299-453
Exports of goods and
nonfactor services1,757.31,953.92,205.62,644.93,060.93,387.1
Imports of goods and
nonfactor services-1,942.5-2,249.8-2,604.7-3,005.3-3,359.9-3,839.6
Gross domestic product2,224.02,427.52,765.13,229.53,779.94,161.0
Gross domestic savings250.7203.6240.7383.8594.2415.8
(In percent of GDP)
Final consumption expenditure88.791.691.388.184.390.0
Private70.272.173.663.961.267.2
Government18.519.617.724.223.122.9
Capital formation19.620.623.123.023.620.9
Gross fixed capital formation18.919.722.222.122.720.0
Government7.212.112.210.29.27.0
Private11.77.510.011.913.513.0
Change in stocks0.70.90.90.90.90.9
Balance of payments for goods and services-8.3-12.2-14.4-11.2-7.9-10.9
Exports of goods and
nonfactor services79.080.579.881.981.081.4
Imports of goods and
nonfactor services-87.3-92.7-94.2-93.1-88.9-92.3
Gross domestic product100.0100.0100.0100.0100.0100.0
Gross domestic savings11.38.48.711.915.710.0
Memorandum items:
Net factor income83.973.6118.2-50.5-217.1-72.9
GNP2,307.92,501.12,883.33,179.03,562.84,088.1
Sources: Central Statistical Office and staff estimates.
Sources: Central Statistical Office and staff estimates.
Table 4.Swaziland: Summary of Developments in Crop Production, 1990/91-1995/96
1990/911991/921992/931993/941994/951995/96
(1985/86 = 100)
Volume indices
Sugarcane113116115108112101
Cotton1473356423539
SNL 1/1503337492329
TDL 2/1182667284658
Maize913744565886
SNL 1/523542545469
TDL 2/646963737897
Citrus fruit9795120114115138
Pineapples868852525130
(In metric tons per hectare)
Yield
Sugarcane1051071059810090
Cotton - TDL 1/111111
Maize
SNL 1/212212
TDL 2/222222
Pineapples413033333225
(In emalangeni per metric ton)
Producer prices
Sugarcane533600630708812904
Cotton1,0541,2681,4101,4111,4121,412
Maize379350420420422422
Citrus fruit302312491520625869
Pineapples133133126126127169
Sources: Central Statistical Office; and Central Bank of Swaziland.

Swazi Nation Land.

Title Deed Land.

Sources: Central Statistical Office; and Central Bank of Swaziland.

Swazi Nation Land.

Title Deed Land.

Table 5.Swaziland: Developments in Sugar Production, Processing and Consumption, 1990/91 - 1995/96 1/
1990/911991/921992/931993/941994/951995/96
(In thousands of hectares)
Crop area
Area under cultivation373837373838
Area harvested363737373737
(In thousands of metric tons)
Production and processing
Cane3,8423,9413,8853,88837983440
Sucrose542537548548528482
Sugar496490495457485421
End-year stocks450225446
(In metric tons per hectare harvested)
Sugarcane yield106105106107100100
(In thousands of metric tons of raw value)
Domestic consumption 2/425654111165177
Source: Swaziland Sugar Association.

Crop year extends from May to April.

Calendar year.

Source: Swaziland Sugar Association.

Crop year extends from May to April.

Calendar year.

Table 6.Swaziland: Production of Other Major Crops on Title Deed Land, 1990/91 -1995/96 1/
1990/911991/921992/931993/941994/951995/96
(In thousands of metric tons)
Production
Pineapples29.033.519.719.719.711.6
Rice0.40.40.50.30.30.3
Maize8.43.95.06.08.25.0
Citrus fruits73.061.170.066.266.287.2
Total110.898.995.292.294.4104.1
(In thousands of hectares)
Area harvested
Pineapples0.70.80.60.60.80.4
Rice0.10.10.10.10.10.1
Maize3.73.63.63.64.52.4
Citrus fruits 2/2.62.52.52.52.82.5
Total7.17.06.86.88.25.4
(In metric tons per hectare)
Yield
Pineapples41.441.932.832.825.030.0
Rice5.16.16.66.46.04.7
Maize2.31.61.41.61.82.1
Citrus fruits 2/20.028.7
(In thousands of emalangent)
Total value
Pineapples3,8694,5262,6622,6622,6541,957
Rice279343379300229239
Maize3,1883,3133,0003,6004,9203,070
Citrus fruits22,04619,06334,37034,42441,37579,659
Total29,38127,24540,41040,98549,17884,925
(In emalangeni per metric ton)
Unit value
Pineapples133135135135135169
Rice752789800800850900
Maize379571600600600614
Citrus fruits302312419520625869
Sources: Central Statistical Office; and Central Bank of Swaziland.

Variable crop years.

Area harvested refers to area under cultivation, an unknown portion of which is harvested. Calculations of yields is therefore not possible.

Sources: Central Statistical Office; and Central Bank of Swaziland.

Variable crop years.

Area harvested refers to area under cultivation, an unknown portion of which is harvested. Calculations of yields is therefore not possible.

Table 7.Swaziland: Production of Food Crops on Swazi Nation Land, 1990/91-1995/96 1/
1990/911991/921992/931993/941994/951995/96
(In thousands of metric tons)
Output
Maize144.653.984.576.276.1128.8
Sorghum3.30.00.30.40.41.4
Beans0.40.01.21.22.24.8
Groundnuts0.90.12.53.34.15.3
Jugo beans0.60.00.41.12.33.0
(In thousands of hectares)
Area under cultivation
Maize90.857.354.855.359.758.0
Sorghum0.90.30.40.60.51.1
Beans4.10.03.93.13.44.6
Groundnuts2.91.01.82.33.13.8
Jugo beans1.80.51.11.92.51.9
(In metric tons per hectare)
Yield
Maize1.60.91.51.41.32.2
Sorghum3.70.00.80.70.81.3
Beans0.10.00.30.40.61.0
Groundnuts0.30.11.41.41.31.4
Jugo beans0.30.00.40.60.91.6
Source: Central Statistical Office.

Crop year beginning September 1.

Source: Central Statistical Office.

Crop year beginning September 1.

Table 8.Swaziland: Livestock Population and Processing, 1990-95
199019911992199319941995
(In thousands of head)
Livestock population
Cattle660.2740.1752.8607.5613.6642.0
SNL 1/540.2613.4622.8491.8518.6495.4
TDL 1/120.0126.7130.0115.795.0146.6
Goats257.0334.2409.8421.8459.2435.1
Sheep37.923.827.831.027.024.3
Pigs10.427.931.030.037.930.0
Cattle statistics
Births85.4103.393.956.087.094.4
Deaths24.642.089.373.530.833.5
Offtake51.461.354.955.062.562.7
Ofwhich
SMC 2/ abattoir tl13.514.17.216.217.0-17.8
(In thousands of metric tons)
Beef exports to EEC0.80.90.00.31.00.5
EEC beef export quota3.43.43.43.43.43.4
Source: Central Statistical Office.

SNL, Swazi Nation Land; TDL, Title Deed Land.

Swaziland Meat Corporation discontinued its operations in 1988; operations resumed in January 1989; as Swaziland Meat Industries (SMI). Operations under SMI again stopped in March 1992 to resume in July 1992 under new ownership of SMI.

Source: Central Statistical Office.

SNL, Swazi Nation Land; TDL, Title Deed Land.

Swaziland Meat Corporation discontinued its operations in 1988; operations resumed in January 1989; as Swaziland Meat Industries (SMI). Operations under SMI again stopped in March 1992 to resume in July 1992 under new ownership of SMI.

Table 9.Swaziland: Forest Area, Processing, and Consumption of Forestry Products, 1990-95
199019911992199319941995
(In thousands of hectares)
Total forest area109.1105.7107.6107.5103.7105.3
Swazi Nation Land4.54.54.54.54.54.5
Commercial forests104.6101.2103.1103.099.2100.8
Ofwhich
Pines81.082.481.181.579.379.5
Wood processing
Wood pulp
(thousands of metric tons)133.2153.4159.4181.5181.5170.9
Sawn timber
(thousands of cubic meters)75.271.575.474.062.666.5
Mine timber
(thousands of cubic meters)49.742.245.145.646.747.0
(In thousands of metric tons)
Memorandum items:
Exports of wood pulp133.1154.9163.0170.8166.3157.1
Source: Central Statistical Office.
Source: Central Statistical Office.
Table 10.Swaziland: Mineral Production and Exports, 1990-95

(In thousands of metric tons)

199019911992199319941995
Production
Chrysolite asbestos35.913.932.333.627.027.9
Coal152.7122.5100.249.6227.7171.7
Exports
Chrysolite asbestos34.39.825.031.825.024.6
Coal151.4113.2130.049.6113.198.0
Stock
Chrysolite asbestos0.02.93.02.11.84.9
Sources: Central Statistical Office; and Geological Survey and Mines Department.
Sources: Central Statistical Office; and Geological Survey and Mines Department.
Table 11.Swaziland: Index of Industrial Production, 1990-95

(1985 = 100)

199019911992199319941995
Mining109.7106.4134.6139.7149.7145.0
Manufacturing
Sugar refining137.7126.9135.1125.3132.9128.3
Other agro—processing65.573.075.481.083.283.2
Drink processing1,294.31,286.21,263.81,332.51,551.31,756.3
Wood pulp, timber, and84.497.0107.0103.0102.0103.9
packaging
Other manufacturing605.5604.8549.7598.2649.8682.9
All industries212.2211.3213.4215.4234.8247.3
Source: Central Statistical Office.
Source: Central Statistical Office.
Table 12.Swaziland: Electrical Power and Demand, 1990-95

(In millions of kilowatt-hours)

199019911992199319941995
Total local production and
imports 1/557.0507.5647.0662.0692.0714.9
Local production 2/150.0150.080.0130.0114.095.6
Hydroelectric148.0148.077.0129.0113.092.6
Diesel2.02.03.01.01.03.0
Imports (from ESKOM) 3/407.0357.5567.0532.0578.0619.3
Total sales 1/476.1493.7570.0567.6582.8701.6
Household99.0102.2114.0114.4120.8123.4
Commercial48.142.957.049.851.752.1
Irrigation power and bulk329.0348.6399.0403.4410.3526.1
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.

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.

Table 13.Swaziland: Retail Price Indices of Urban Families, December 1990-95

(In millions of emalangeni)

199019911992199319941995
(September 1988 = 100)
Middle- and high-income index 1/125.8135.6146.6166.0188.6207.7
Food127.2151.6172.2176.6244.0277.5
Alcohol and tobacco121.9141.9152.1165.4181.0196.7
Clothing and footwear121.0124.1134.0147.3155.2162.4
Housing117.8132.7142.4151.4153.9157.2
Fuel and power126.7119.4120.8156.2157.0158.9
Furniture and appliances121.2122.0128.1138.7143.4155.1
Household operations117.8135.8144.2153.4181.4189.9
Healthcare129.5100.6107.1128.0140.3158.3
Transport and communications139.6139.3143.6164.4181.4199.5
Leisure123.8114.6118.5130.1140.3145.7
Education115.3119.3128.8174.0193.2265.3
Personal care135.4132.8141.7172.3181.4189.8
Miscellaneous109.5106.1107.9154.5159.3162.3
Low-income index 2/128.8139.9153.0173.8200.6224.4
Food139.3154.6174.9197.5241.8273.6
Alcohol and tobacco124.1144.9155.2170.9188.5206.3
Clothing and footwear121.3123.8133.2146.5155.0162.7
Housing112.2132.7143.7154.3157.5161.4
Fuel and power120.1121.3123.7151.7152.7156.0
Furniture and appliances120.5120.6126.5138.9146.9160.5
Household operations126.6140.8152.1163.7189.0199.4
Healthcare126.3116.8122.7140.1147.1167.4
Transport and communications133.1153.5157.2170.2197.8227.0
Leisure114.9116.1120.5135.5150.3154.5
Education111.8121.1131.6131.8203.7286.2
Personal care140.6136.4146.5132.8192.9202.2
Miscellaneous104.2106.9109.1145.1151.2154.0
All groups index 3/123.2135.8146.6166.0188.8207.8
(In rates of change)
Middle and high-income index 1/13.011.64.413.213.610.2
Low-income index 2/14.512.65.513.615.411.9
All groups index 3/10.810.28.013.213.710.1
Memorandum item:
Consumer price index in South Africa
(percentage change)14.416.09.59.79.08.7
Source: Central Statistical Office.

Families with incomes between E 2,400 and E 8,760 per annum.

Families with incomes of E 2,399 per annum and below.

The all groups index is derived independently from the two income indexes on the basis of a different basket of goods and services.

Source: Central Statistical Office.

Families with incomes between E 2,400 and E 8,760 per annum.

Families with incomes of E 2,399 per annum and below.

The all groups index is derived independently from the two income indexes on the basis of a different basket of goods and services.

Table 14.Swaziland: Minimum Wages for General Workers in Selected Industries, 1990- 95
199019911992199319941995
(In emalangeni per month)
Retail and wholesale
Mbabane and Manzini249.0281.0323.0398.0398.0487.2
Elsewhere216.0243.0280.0344.0344.0417.0
(In emalangeni per week)
Manufacturing and processing53.060.072.482.094.0112.8
(In cents per day)
Agriculture261.0306.0353.0392.0451.0523.0
(In cents per hour)
Building and construction113.0136.0145.0162.0185.0218-244
Motor and engineering trades124.0160.0172.0189.0189.0215.0
(In percentage change)
Retail and wholesale
Mbabane and Manzini34.612.915.023.00.022.4
Elsewhere35.012.515.023.00.021.2
Manufacturing and processing32.513.017.017.015.020.0
Agriculture15.017.05.041.015.016.0
Building and construction11.920.010.08.014.0
Motor and engineering trades20.429.09.09.00.013.8
Source: Central Statistical Office.1/ As of December of each year.
Source: Central Statistical Office.1/ As of December of each year.
Table 15.Swaziland: Paid Employment in the Private and Public Sectors by Industry, 1990-95 1/
199019911992199319941995
PrivatePublicPrivatePublicPrivatePublicPrivatePublicPrivatePublicPrivatePublic
Agriculture/Forestry19,9792,10420,7722,43822,3181,18820,8882.30819,9291,01120,9361,021
Mining and quarrying2.2020991059901,06201,24601,1720
Manufacturing14,31217216,67217016,56722016,40517016,05518215,950184
Electricity and water01,69001,79101,18801,63301,12801,139
Construction3,6431,5443,4561,6523,8852,1003,7158993,3688703,668878
Distribution12,942012,444011,937012,268010,942010,0880
Transportation3,3422,8693,4503,0471,7883,1031,8382,6961,7843,4841,8743,517
Finance4,6961,6293,7072,3413,7401,3543,7122,5743,9112,0093,8102,028
Social services3,52917,3472,94416,0633,65118,4973,67617,2823,84918,5223,87218,698
Total64,64527,35564,43627,50264,48527,65063,56427,56261,08427,20661,37027,465
Memorandum items:
Swazi migrant labor24,00025;160
Of which: mining19,32719,15616,11615,85414,48815,304
Sources: Central Statistical Office; and staff estimates.

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

Sources: Central Statistical Office; and staff estimates.

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

Table 16.Swaziland: Summary of Central Government Operations, 1990/91 -1995/96 1/
1990/911991/921992/931993/941994/95Budget

1995/96
Est.

1995/96
(In millions of emalangeni)
Total revenue and grants7568179129811,1771,4221,447
Tax revenue6707297749051,1021,3581,364
Of which
SACU receipts338357359455566744744
Nontax revenue76689247443939
Grants11214629312544
Total expenditure and net lending5916941,0151,1531,3981,5071,472
Current expenditure4525117188731,0501,1341,122
Wages and salaries245278383528543630634
Of which
Pension funds005059000
Other goods and services119138188221263279252
Interest payments20202422253232
Subsidies and transfers6876123103219193204
Of which
NFPEs 2/19244246317123
Capital expenditure130187307265349363290
Net lending9-4-1015-1960
Overall surplus/deficit165123-103-172-220-84-25
Financing-165-1231031722208425
Foreign (net)-6-16-8-25-383434
Gross borrowing23132714107373
Amortization29293539483939
Domestic (net)-160-107111197258-9
Domestic bank-128-231184880-207
Central Bank-61-24673269-202
Commercial banks-6715111611-5
Other domestic-3212494149178198
Bonds and bills200-2257
Loans0000
Deposits-2000
Other 3/-3212494151153191
(In percent of GDP)
Total revenue and grants34.033.733.030.431.134.234.8
Tax revenue30.130.028.028.029.232.632.8
Of which
SACU receipts15.214.713.014.115.017.917.9
Company tax6.47.47.56.35.55.94.8
Personal income tax3.02.92.83.03.62.84.0
Sales tax3.53.93.83.83.5434.2
Nontax revenue3.42.83.31.51.20.90.9
Grants0.50.91.70.90.80.61.1
Total expenditure and net lending26.628.636.735.737.036.235.4
Cunrent expenditure20.321.126.027.027.827.327.0
Of which
Wages and salaries11.011.513.916.314.415.115.2
Capital expenditure5.87.711.18.29.28.77.0
Net lending0.4-0.2-0.40.500.21.4
Overall surplus/deficit7.45.1-3.7-5.3-5.8-2.0-0.6
Financing-7.4-5.13.75.35.82.00.6
Foreign (net)-0.3-0.7-0.3-0.800.80.8
Domestic (net)-7.2-4.44.06.16.8-0.2
Memorandum item:
GDP at current market prices2,2242,4282,7653,2303,7804,1614,161
Sources: Ministiy of Finance; and staff estimates.

The fiscal year runs from April 1 to March 31. Data are presented on a fiscal-year basis.

NFPEs, nonfinancial public enterprises.

Includes changes in unpresented checks in accounts payable, changes in funds held in trust, cash in transit, and errors.

Sources: Ministiy of Finance; and staff estimates.

The fiscal year runs from April 1 to March 31. Data are presented on a fiscal-year basis.

NFPEs, nonfinancial public enterprises.

Includes changes in unpresented checks in accounts payable, changes in funds held in trust, cash in transit, and errors.

Table 17.Swaziland: Central Government Revenue and Giants, 1990/91-1995/96 1/
1990/911991/921992/931993/941994/95Budget

1995/96
Est.

1995/96
(In millions of emalangeni)
Tax revenue6717297749061,1021,3581,364
Taxes on net income and profits224261300316365383393
Companies143179207204209246201
Individuals66707996134116168
Nonresident dividends and interest13121415222124
Taxes on property2222223
Taxes on goods, services, and
international trade446465472587735973968
SACU receipts338357359455567744744
Sugar export levy13701000
Hotels and gaming taxes11I1131
Licenses and other taxes4334769
Sales tax7995105123131180173
Road levy and oil tax0000263636
Other taxes10334344
Total nontax revenue76689247443939
Property income56487727212118
Fees, fines, and nonindustrial sales19191420231921
Total revenue7457968669531,1461,3971,403
Grants11214629312544
Total revenue and grants7568179129821,1771,4221,447
(In percent of GDP)
Tax revenue30.230.028.028.029.232.632.8
Taxes on net income and profits10.110.810.89.89.79.29.5
Of which
Companies6.47.47.56.35.55.94.8
Taxes on property0.10.10.10.10.00.10.1
Taxes goods, services, and international trade20.019.217.118.219.423.423.3
Of which
SACU receipts15.214.713.014.115.017.917.9
Nontax revenue3.42.83.31.51.20.90.9
Grants0.50.91.70.90.80.61.1
Total revenue and grants34.033.633.030.431.134.234.8
(In percent of total revenue and grants)
Tax revenue88.889.284.992.393.695.594.3
Taxes on net income and profits29.632.032.932.231.026.927.2
Of which
Companies18.922.022.720.817.817.313.9
Taxes on property0.20.20.20.30.10.20.2
Taxes goods, services, and international trade59.057.051.859.862.468.466.9
Of which
SACU receipts44.743.739.446.348.152.351.4
Nontax revenue10.08.310.14.83.72.82.7
Grants1.42.55.12.92.71.83.0
Total revenue and grants100.0100.0100.0100.0100.0100.0100.0
Memorandum item:
GDP at current market prices2,2242,4282,7653,2303,7804,1614,161
Sources: Ministiy of Finance; and staff estimates.

The fiscal year runs from April to March.

Sources: Ministiy of Finance; and staff estimates.

The fiscal year runs from April to March.

Table 18.Swaziland: Economic Classification of Central Government Expenditure and Net Lending, 1990/91-1995/96 1/
1990/911991/921992/931993/941994/95Budjet

1995/96
Outturn

1995/96
(In millions of emalangeni)
Current expenditure452511718.5873.31,049.61,134.41,121.2
Wages and salaries245278383.4527.6542.6630.1634.1
Of which
Pension plans005059000
Other purchases of goods and service119138.187.8220.4262.7279.1251.8
Interest payments202024.321.624.832.031.2
Domestic432.94.07.23.010.6
Foreign171621.417.617.629.020.6
Subsidies and other current transfers6876123.0103.7219.5193.2204.1
Of which
Subsidies to NFPEs 2/192494631
Capital expenditure130187306.9265.7349.0363.2290.0
Education21302733
Agriculture12193628
Transport and communications4713118118
Other5012612687
Net lending9-4-1014-1-2259.7
Gross lending122732.422.716.81763.2
Repayments33142.78.317.9403.5
Total expenditure and net lending5916941,0151,1531,3981,4751,471
Current expenditure20.321.126.027.027.827.326.9
Capital expenditure5.87.711.18.29.28.77.0
Net lending0.4-0.2-0.40.4-0.0-0.51.4
Total expenditure and net lending26.628.636.735.737.035.535.4
(In percent of total expenditure and net lending)
Current expenditure76.673.770.875.775.176.976.2
Wages and salaries41.440.137.845.738.842.743.1
Of which
Pension plans004.95.1000
Other purchases of goods and service20.219.818.519.118.818.917.1
Interest payments3.42.82.41.91.82.22.1
Capital expenditure21.926.930.223.025.024.619.7
Net lending1.5-0.6-1.01.3-0.1-1.54.1
Total expenditure and net lending100.0100.0100.0100.0100.0100.0100.0
Memorandum item:
GDP at current market prices2,224.02,427.52,765.13,229.53,779.94,161.04,161.0
Sources: Ministry of Finance; and staff estimates.

The fiscal year ru ns from April to March.

NFPEs, nonfinacial public enterprises.

Sources: Ministry of Finance; and staff estimates.

The fiscal year ru ns from April to March.

NFPEs, nonfinacial public enterprises.

Table 19.Swaziland: Economic Classification of Government Current Expenditure, 1990/91-1994/95
1990/911991/921992/931993/941994/95
(In millions of emalangeni)
General public service121135244346407
General administration7280179258306
Public order and safety48556487101
Defense3943597782
Social services203242284312415
Education138165198211276
Health4852617891
Other1725242348
Economic services6978116124118
Agriculture3032394048
Manufacturing, mining, and construction83031269
Water and sewerage33443
Transport and communication2210405052
Other63347
Interest2020252325
Total4525177278821047
(In percent of GDP)
General public service5.45.68.810.710.8
General administration3.33.36.58.08.1
Public order and safety2.22.32.32.72.7
Defense
Social services
Education6.26.87.26.57.3
Health2.12.12.22.42.4
Other0.81.00.90.71.3
Economic services3.13.24.23.83.1
Interest payments0.90.80.90.70.7
(In percent of total current expenditure)
General public service26.726.133.539.238.9
General administration16.015.524.629.329.2
Public order and safety10.710.78.99.99.7
Defence
Social services45.046.839.135.339.7
Education30.631.927.323.926.4
Health10.510.08.48.98.7
Other3.84.93.42.64.6
Economic services15.315.115.914.111.3
Interest payments4.53.83.42.62.4
Memorandum item:
GDP in market prices2,224.02,427.52,765.13,229.53,779.9
Source: Ministry of Finance
Source: Ministry of Finance
Table 20.Swaziland: Capital Expenditure by Sector, 1990/91 -1994/95

(In millions of emalangeni)

1990/911991/921992/931993/941994/95
General public services33.040.073.830.929.0
General Administration20.119.955.215.816.7
Public Safety and defense12.920.118.615.112.3
Social services33.561.466.177.265.8
Education20.829.726.632.930.5
Health3.910.49.510.65.8
Housing7.211.225.726.225.7
Recreation and culture1.610.14.37.53.8
Economic services63.085.2167.0169.8252.8
Agriculture12.018.535.728.319.5
Industry and mining00.64.79.62.4
Water and Sewage3.83.82.65.45.6
Transport and communications47.256.9118.1117.8218.6
Other05.45.98.76.7
Total capital expenditure142.5206.7325.5293.0347.6
Source: Ministry of Finance.
Source: Ministry of Finance.
Table 21.Swaziland: Government Transfer Payments, 1990/91-1995/96

(In millions of emalangeni)

1990/911991/921992/931993/941994/95Budget

1995/96
Est.

1995/96
SEDCO 1/0.70.80.91.21.71.71.8
Water and Sewerage Board0.80.91.18.310.89.09.0
Royal Swazi Airways01.71.92.1010.010.0
NIDCS 2/0000000
Television Authority1.72.12.52.62.73.43.0
PiggsPeakHotel0.30.600000
Grants to students11.813.616.318.619.720.543.2
Subvention to university15.617.725.831.037.038.341.0
Grants to SEBENTA0.81.01.21.30.41.51.4
Grants to Mission Hospital13.113.815.417.116.423.9
Public assistance0.30.30.80.82.33.7
Grants to town councils2.42.83.23.59.915.915.9
Grants to youth and sports0.20.20.20.40.60.8
U.N. Regular Budget0.20.20.20.20.40.3
Organization of African Unity0.50.50.500.50.6
National Trust Commission1.11.41.93.13.33.43.6
King’s Office0.42.12.80000
Subscription to Preferential Trade Area0.40.60.60.60.50.30.3
Swazi National Treasury4.34.85.86.76.28.7
Cattle Dipping Chemicals0.809.50000
Other12.715.829.431.211.117.9
Total68.180.9119.8121.4123.4103.8185.0
Memorandum item:
Transfers in percent of GDP3.13.34.33.83.32.54.4
Source: Ministry of Finance.

Small Enterprises Development Company.

National Industrial Development Corporation of Swaziland.

Source: Ministry of Finance.

Small Enterprises Development Company.

National Industrial Development Corporation of Swaziland.

Table 22.Swaziland: Flow of Funds from the Nonfinancial Public Enterprises, 1990/91-1995/96

(In thousands of emalangent)

1990/911991/921992/931993/941994/951995/96

Budget
Swaziland Railways91,90086,10078,607071,465
Share capital000048,189
Loan capital91,90086,10078,607023,276
Operating/Transport subsidy00000
Capital subsidy00000
Swaziland Electricity Board77,67174,35465,5930123,978
Share capital000044,352
Loan capital77,67174,35465,593075,527
Operating/Transport subsidy00004,099
Capital subsidy00000
NIDCS 1/5,4215,4215,4215,7998,2058,205
Share capital5,4215,4215,4215,4215,4215,421
Loan capital00002,7842,784
Operating/Transport subsidy000000
Capital subsidy00037800
Small Enterprise Development Corporation7038022,8461,6634,1014,601
Share capital33332,4012,401
Loan capital000000
Operating/Transport subsidy7007991,0191,1671,7001,700
Capital subsidy001,8244930500
Swaziland Television Authority2,8422,1022,5202,5903,5404,320
Share capital950950950950950950
Loan capital000000
Operating/Transport subsidy1,7422,1022,5202,5902,5903,370
Capital subsidy1,1005,0030000
Water and Sewerage Board10,97320,69311,86322,96324,19615,260
Share capital00001,3001,300
Loan capital10,14319,75910,17410,17413,5660
Operating/Transport subsidy8309341,0568,2619,3308,960
Capital subsidy006334,52805,000
Royal Swazi National Airways Corporation56,10156,10057,98358,162
Share capital1,5001,5001,5001,500
Loan capital54,60054,60054,61654,616
Operating/Transport subsidy001,8672,046
Capital subsidy1000
Central Cooperative Union002013,2921,3331,570
Share capital000000
Loan capital0000883883
Operating/Transport subsidy000000
Capital subsidy002013,292450687
Piggs Peak Hotel3,6583,6584,9134,9134,813
Share capital00002
Loan capital3,6583,6584,9134,9134,811
Operating/Transport subsidy00000
Capital subsidy00000
Swaziland Trade Fairs
Share capital222222
Loan capital00002424
Operating/Transport subsidy000000
Capital subsidy0000260251
University of Swaziland15,60017,68225,75151,24641,60139,885
Share capital000000
Loan capital0000533533
Operating/Transport subsidy8,8056,46517,15431,04238,26838,268
Capital subsidy6,79511,2178,59720,2042,8001,084
Swaziland Commercial Board 2/1,9531,95300
Share capital1,9531,95300
Loan capital0000
Operating/Iransport subsidy0000
Capital subsidy0000
Sebenta National Institute9841,1121,2321,2731,4001,450
Share capital000000
Loan capital000000
Operating/Transport subsidy9841,1121,2321,2731,4001,450
Capital subsidy000000
Swaziland Development and Savngs Bank10,0029,9509,8619,8619,86120,000
Share capital9,8619,8619,8619,8619,86120,000
Loan capital000000
Operating/Transport subsidy000000
Capital subsidy141890000
Posts and Telecommunications Corporation44,22547,0000036,64836,648
Share capital000000
Loan capital44,22547,0000036,64836,648
Operating/Transport subsidy000000
Capital subsidy000000
National Tni6t Commission2,1652,1231,9983,0602,6904,751
Share capital000000
Loan capital000000
Operating/Transport subsidy1,1521,3751,9303,0602,6903,350
Capital subsidy1,01374868001,401
Swaziland Housing Board878710,8757511,25011,250
Share capital7575757510,80010,800
Loan capital12110,8000450450
Operating/Transport subsidy000000
Capital subsidy0110000
National Maize Corporation2,4052,4052,4052,4052,405
Share capital52,4052,4052,4052,405
Loan capital2,4000000
Operating/Transport subsidy00000
Capital subsidy00000
National Agricultural Marketing Board5000000
Share capital000000
Loan capital000000
Operating/Transport subsidy000000
Capital subsidy5000000
Total327,692337,497283,021168,254347,772148,217
Share capital19,77022,17020,21720,217125,68340,874
Loan capital284,609285,472224,70369,703158,50241,322
Operating/Transport subsidy14,21312,78726,77849,43960,07757,098
Capital subsidy9,10017,06811,32328,8953,5108,923
Memorandum item:
Gross flow in percent of GDP13.613.310.05.39.63.6
Source: Ministry of Finance.

NIDCS, National Industrial Development Corporation of Swaziland.

In liquidation.

Source: Ministry of Finance.

NIDCS, National Industrial Development Corporation of Swaziland.

In liquidation.

Table 23.Swaziland: Outstanding Domestic Government Debt by Type of Instrument, 1990/91 -1995/96

(In thousands of emalangent; end-March)

1990/911991/921992/931993/941995/96
Government stocks and bonds24,67324,64824,64823,14852,518
Central Bank of Swaziland000020,410
Deposit money banks00000
Other financial institutions17,89617,87117,87117,37117,231
Other6,7776,7776,7775,77714,877
Treasury bills00030,00050,000
Central Bank of Swaziland00000
Deposit money banks00030,00049,700
Other0000300
Memorandum items:
Maturity distribution:
Less than one year11501,50030,63054,885
One-five years2,1307,01515,51514,88517,633
Five-ten years22,51817,6337,6337,63330,000
Over ten years00000
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 24.Swaziland: Monetary Survey, December 1991 -September 1996
DecemberMarchJuneSept.DecMarchJuneSept.
199119921993199419951996
Monetary authorities(In millions of emalangeni)
Net foreign assets6049067927307448098279179351,0421,126
CBS528770775725732798816905894934997
Government761371761111111242108128
Net domestic assets−337−520−501−405−451−489−458−568−637−792−803
Central government (net)−326−500−454−346−379−454−421−535−591−719−665
Claims000000000060
Deposits 1/−326−500−454−386−399−454−421−555−612−724−725
Private sector91091111111213131414
Commercial banks1310766343430383837
Other items, net (asset:+)−33−40−63−76−89−80−83−76−96−125−188
Reserve money267386291326293320369348299250323
Currency in circulation 2/5356757077848880839393
Commercial bank reserves180295172219181203232215171129170
Private sector claims3435443735334953452760
Commercial banks
Net foreign assets808811289127148131107136166415
Reserves180295172219181203232215171129170
Required5048617072717873715588
Excess1292471111491091321551431007465
Credit from CBS−13−10−7−6−6−34−34−30−38−38−37
Domestic credit553514692812843773874801828830787
Central government (net)−93−89−44−53−60−67−56−65−69−63−18
Private sector646603736865903839929866897893805
Other items (net)−102−31−23−39−45−14−151−33−11−100
Deposits6978579471,0751,1001,0751,1871,0941,0631,0761,235
Monetary survey
Net foreign assets6839959048208719579581,0231.0711,2081,540
Domestic credit23624247477475330464279249124136
Central government−419−589−498−399−439−521−477−600−660−783−683
Private sector 3/655613745875914850941878909907819
Other items net−135−71−86−115−134−94−98−75−129−136−288
Broad money7849481,0661,1821,2121,1921,3241,2271,1911,1961,388
Currency in circulation 2/5356757077848880839393
Deposits7318919911,1121,1361,1081,2361,1471,1081,1031,295
Of which
Time deposits440544578640641595737613619565741
(Annual percent change)
Reserve money−5.444.7−24.511.84.811.231.67.02.0−21.9−12.4
Broad money20.520.812.510.95.81.79.13.9−1.80.34.9
Currency in circulation10.05.934.1−7.515.119.18.215.47.711.25.7
Deposits21.421.911.112.35.20.69.13.1−2.4−0.54.8
Of which

Time deposits
27.123.66.310.91.2−10.711.8−4.2−3.6−5.00.5
Private sector credit43.2−6.421.517.510.1−0.82.00.3−0.56.6−13.0
Government credit−40.3−40.615.519.918.5−4.4−18.9−50.4−50.4−50.3−43.2
(Annual change as percent of beginning period stock of broad money)
Net foreign assets7.239.7−9.5−8.0−5.66.213.017.316.521.044.0
Domestic credit11.8−27.123.621.516.0−2.5−4.7−16.8−18.7−17.2−24.8
Central Government (net)−18.5−21.79.79.38.7−1.9−6.2−17.0−18.3−22.0−15.6
Private sector30.3−5.313.912.27.3−0.61.50.3−0.44.7−9.2
Other items net1.48.2−1.6−2.7−4.6−2.00.93.40.4−3.5−14.4
Memorandum items:
Excess liquidity to deposits4.819.012.713.95.68.414.913.213.64.86.4
Currency/broad money ratio6.85.97.15.96.37.06.76.56.97.86.7
Reserves/de posits25.834.418.120.416.418.919.619.716.112.013.8
Money multiplier2.92.53.73.64.13.73.63.54.04.84.3
Source: Central Bank of Swaziland (CBS).

Comprises government domestic deposits with the central bank and the counterpart of government external assets in rand.

Excludes rand in circulation.

Includes public sector entities other than the Government.

Source: Central Bank of Swaziland (CBS).

Comprises government domestic deposits with the central bank and the counterpart of government external assets in rand.

Excludes rand in circulation.

Includes public sector entities other than the Government.

Table 25.Swaziland: Assets and Liabilities of the Central Bank of Swaziland, December 1991 -September 1996

(In millions of emalangeni)

DecemberMarchJuneSeptDecMarchJuneSept
199119921993199419951996
Foreign assets 1/6129127998458588268359959421,1291215
CBS-managed5367757828398478158239849011,0211087
Government761371761211111242108128
Claims on government0004020002120560
Claims on private sector91091111111213131414
Claims on commercial banks1310766343430383837
Assets = Liabilities6349318149018958728811,0591,0131,1861326
Foreign liabilities8661151151777978789
Government deposits326500454386399454421555612724725
Ofwhich
Capital Investment Fund189318383330347358350350431472501
Reserve money267386291326293320369348299250323
Currency in circulation 2/727596949197106107104113120
Commercial bank deposits103206151194167189214189150109106
CBS bills677800000001035
Private sector deposits2426443735334953451760
Demand deposits00000000000
Savings deposits00000000000
Time deposits2425443735334853451760
Other items (net) 3/334063758981847696125188
Source: Central Bank of Swaziland.

Includes CIF deposits.

Excludes rand in circulation.

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

Source: Central Bank of Swaziland.

Includes CIF deposits.

Excludes rand in circulation.

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

Table 26.Swaziland: Assets and Liabilities of Commercial Banks, December 1991-September 1996 1/

(In millions of emalangeni)

DecemberMarchJuneSeptDecMarchJuneSept
199119921993199419951996
Foreign assets 2/120164186166198234228185211256449
Claims on government00303837375050454384
Claims on private sector646603736865903839929866897893805
Reserves135281178216187215242220213171157
Baianceswith CBS71194156191174202224194192151115
CBS bills45690000000015
Notes and coin 2/1919212514141827212027
Other items (net) 3/1070655653789361−3197
Assets = Liabilities9111,1191,1941,3411,3781,4031,54113821,36413831,502
Foreign liabilities4075747771869778759035
Government deposits9389749196103105115115107101
Private sector deposits6978579471,0751.1001,0751,1871,0941,0631,0761,235
Demand deposits158198215242256289261283236268286
Savings deposits416518534604606562689561574548681
Time deposits123141198230238224237251253260268
Balances due to CBS131076811140390
Capital accounts6887939210312813895108101131
Source: Central Bank of Swaziland.

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.

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 27.Swaziland: Commercial Bank Deposits by Sector, December 1991-September 1996 1/

(In millions of emalangeni)

DecemberMarchJuneSeptDecMarchJuneSept
199119921993199419951996
Demand deposits153195215242256285259280235267285
Central government10031110000
Other public bodies 2/1014202828243044232222
Personal3263656671928171798181
Business110118130144157169147165133165181
Time and savings deposits6327467979219408881,0309269429141,050
Central government9289748896103105105115107101
Other public bodies 2/129131164205206191211185174173200
Personal197266341393380363412416421419447
Business215261218235258232303221232215303
Total deposits7859411,0111.1631.1961,1731,2891,2071,1771,1811,335
Central government9389749196103105105115107101
Other public bodies 2/139144184233233215241228197195222
Personal229329406459451455492487500500528
Business324379349380415401451386365380484
Source: Central Bank of Swaziland.

Numbers do not include bank checks outstanding.

Comprises focal government, town councils, and statutory corporations.

Source: Central Bank of Swaziland.

Numbers do not include bank checks outstanding.

Comprises focal government, town councils, and statutory corporations.

Table 28.Swaziland: Commercial Bank Liquidity Position, December 1991-September 1996
DecemberMarchJuneSept.Dec.MarchJuneSept.
199119921993199419951996
Total liquid assets 1/165331288346254285400351346243299
Of which

Balance with CBS
100194156191174202224194192151115
Required liquid assets128150158183187186207191186186213
Domestic liquidity surplus3818113016367991931601625785
Net due from foreign banks75851047713115614295134166301
Total liquidity surplus11326623424019825633595297223386
Memorandum items:
Liquidity ratios
Required liquidty to deposits16.115.815.515.715.615.816.015.815.815.816.0
Actual liquidity to deposits20.934.828.229.721.224.230.929.029.420.622.7
Source: Central Bank of Swaziland.

Comprises cash in tills, treasury bills, and eligible stock of the Swazi Government, balances with the CBS and other banks, and other approved assets.

Source: Central Bank of Swaziland.

Comprises cash in tills, treasury bills, and eligible stock of the Swazi Government, balances with the CBS and other banks, and other approved assets.

Table 29.Swaziland: Commercial Bank Loans and Advances by Category of Borrower, December 1991-September 1996

(In millions of emalangeni)

DecemberMarchJuneSeptDec.MarchJuneSept.
199119921993199419951996
Industry486432530570657582577576589614515
Agriculture and forestry4539939891726845585956
Mining and quarrying02154444555
Manufacturing205160142158229137161153146175157
Construction27376595949479108859368
Distribution and tourism6564549310612711210212310487
Transport, communications,
and other2931353636373632404027
Social and personal services1917172221282131413328
Other9683123637784961019210488
Personal loans 1/121132155189203203220217214228232
Statutory bodies2814141115101319198
Other 2/223234182462
Total611574702775874804824807825867757
Source: Central Bank of Swaziland.

Includes small amounts of loans to nonresidents.

Local authorities and private financial institutions.

Source: Central Bank of Swaziland.

Includes small amounts of loans to nonresidents.

Local authorities and private financial institutions.

Table 30.Swaziland: Interest Rates in Swaziland and South Africa, December 1991 -September 1996 1/

(In percent)

DecemberMarchJuneSept.Dec.MarchJuneSept.
199119921993199419951996
Discount rate
Central Bank of Swaziland13.012.011.012.0013.7513.7515.0015.0015.0015.7515.75
South African Reserve Bank17.014.012.013.0014.0015.0015.0015.0015.0016.0016.00
Treasurv bills
Swaziland12.610.98.38.889.0210.5312.6012.7613.45135813.96
South Africa16.012.310.212.6612.9713.7314.00142214.1615.7015.10
Prime lending rate
Swaziland16.0815.014.015.0016.4016.7518.0018.0018.0018.7518.75
South Africa20.0017.315.316.3017.5018.5018.5018.5018.5020.5019.50
Bank time deposits
Swaziland-31 days10.208.77.27.758.558.709.809.809.8010.2510.25
South Africa-31 days16.5012.410.111.8812.5813.2713.7814.8314.3316.2815.68
Swaziland-12 months11.889.86.98.3010.1010.3011.9011.9011.9012.7012.70
South Africa-12 months15.8011.59.813.9014.2514.9514.2513.9013.5015.1514.85
Bank savings deposits, Swaziland8.5-11.58.0-10.56.75-9.56.5-9.06.75-10256.75-10.57.8-11.87.8-11.87.8-11.88.3-12.38.3-12.3
Source: Central Bank of Swaziland.

End-of-period minimum and maximum rates; rates on large-scale interbank deposits as well as other money market rates often diverge widely from the deposit rates offered to the general public in Swaziland.

Source: Central Bank of Swaziland.

End-of-period minimum and maximum rates; rates on large-scale interbank deposits as well as other money market rates often diverge widely from the deposit rates offered to the general public in Swaziland.

Table 31.Swaziland: Balance of Payments, 1990-95

(In millions of U.S. dollars)

19901991199219951994Est.

1995
Exports, f.o.b.550595639675746798
Of which
Sugar171167149125108122
Imports, f.o.b.−587−633−765−772−816−894
Trade balance−37−39−126−97−70−96
Services (net)8−3028−41−59−53
Nonfactor services (net)−25−56−14−262−33
Factor incomes (net)322741−15−61−20
Investment income (net)−48−51−36−71−111−72
Laborincome (net)898889676267
Goods and services balance−29−68−99−138−130−149
Unrequited transfers (net)9899124998898
Official sector98100124998996
Nonduty SACU receipts514963666975
Other475160332021
Private sector0−10002
Current account balance693126−39−41−51
Direct investment (net)295450312340
Other long-term capital (net)−50−27−8−42−56−13
Official sector−24−1210−12−173
Private sector−26−15−18−29−39−16
Other short-term capital (net)−17−7−4−35−2−35
Official sector−114−23−24−147
SACU claims (net)−114−22−24−148
Other00−10−1−1
Banking sector512−3−76−5
Priva te sector−11−2322−46−37
Capital account (identified)−382038−45−35−8
Errors and omissions−19−3624216389
Overall balance111487−63−1330
Financing−11−14−876313−30
Change in gross reserves (- inc.)−27−29−10535−13−41
Central bank−27−29−10535−16−40
Government00003−2
Change in liabilities to the IMF (- inc.)000000
Valuation (+inc)161517282612
Memorandum items:
Gross official reserves (end of period)205.5221.9319.8244.3237.8274.2
In months of imports of GNFS3.43.44.43.33.13.2
Exports/GDP (in percent)64.067.565.968.270.069.6
Imports/GDP (in percent)68.271.978.978.076.677.9
Current account/GDP (in percent)8.03.52.6−3.9−3.9−4.4
Debt/GDP (in percent)26.224.221.521.317.817.9
Debt service in percent of exports of GNFS7.13.83.02.93.22.6
Export volume (percentage change)3.82.86.914.7−1.82.7
Import volume (percentage change)1.83.014.77.25.02.1
Terms of trade (1985=100)100101959194101
Percentage change−4.81.0−5.8−4.24.17.4
GDP at current prices (millions of U.S. dolla rs)8608819709901,0651,147
Emalangeni per U.S.$ (period average)2.592.762.853.263.553.63
Sources: Central Bank of Swaziland.
Sources: Central Bank of Swaziland.
Table 32.Swaziland: Balance of Payments. 1990-95

(In millions of emalangeni)

19901991199219931994Est.

1995
Exports, f.o.b.1,4221,6391,8212,2032,6462,894
Of which
Sugar442461424409383442
Imports, fco.b.−1,518−1,746−2,181−2,519−2,895−3,243
Trade balance−95−107−360−316−249−349
Services (net)20−8179−134−211−191
Nonfactor services (net)−64−155−39−837−118
Factor incomes (net)8474118−50−217−73
Investment income (net)−123−141−102−231−393−252
Labor income (net)231242254218221242
Goods and services balance−76−188−281−450−460−540
Unrequited transfers (net)254273353324314355
Official sector254276352322315349
Nonduty SACU receipts131136180216245272
Other1251401721067077
Private sector0−411−17
Current accoun t balance1788473−127−146−185
Direct investment (net)7615014310183146
Other long-term capital (net)−130−76−23−136−200−47
Official sector−63−3329−40−6111
Private sector−67−43−52−96−139−58
Other short-term capital (net)−45−20−12−113−6−127
Official sector−2912−65−78−5126
SACU claims (net)−2911−62−78−4928
Other01−3−2−2
Banking sector1232−8−2423−18
Private sector−28−6462−1223−135
Capital account (identified)−9954109−148−123−28
Errors and omissions−50−1016867224321
Overall balance2938249−207−45108
Financing−29−38−24920745−108
Change in gross reserves (- increase)−70−80−300114−47−151
Central bank−69−80−301114−58−144
Government−101011−6
Change in liabilities to IMF (+ increase)000000
Valuation (+in crease)414251959142
Memorandum items:
Gross official reserves (end of period)532612911797844994
In months of imports of GNFS3.43.44.43.33.13.2
Exports/GDP (in percent)64.067.565.968.270.069.6
Imports/GDP (in percent)68271.978.978.076.677.9
Current account/GDP (in percent)8.03.52.6−3.9−3.9−4.4
Debt/GDP (in percent)262421211818
Debt service in percent of exports of GNFS7.13.83.02.93.22.6
Export volume (percentage change)43715−23
Import volume (percentage change)2315752
Terms of trade (1985-100)100101959194101
Percentage change−4.81.0−5.8−424.17.4
GDP at current prices (millions of emalangeni)2,2242,4282,7653,2303,7804,161
Emalangeni per U.S.$ (period average)2.62.82.83.33.53.6
Sources: Central Bank of Swaziland.
Sources: Central Bank of Swaziland.
Table 33.Swaziland: Merchandise Exports, 1990-95

(In millions of U.S. dollars)

19901991199219931994Est.

1995
Sugar171167149125108122
Woodpulp5866655771122
Wood and wood products232625202225
Asbestos12517181713
Canned fruits201916111416
Citrus fruits151414111615
Coal535132
Meat and meat products551444
Diamonds565667
Zippers111111101113
Edible concentrates115123149154157189
Cotton seed and linters23177753
Fruit squashes56891611
Brake linings578688
Cotton yarn103135273748
Other textiles5657117
Face bricks233221
Plastic products222246
Sikanye footwear1098877
Refrigerator31326564953
TV0000313
Window screens023333
Paper products71518201618
Chappies000000
Ethanol000000
Eucalyptus111111
Other food131625466063
Other8682177
Total Domestic exports531579613633655776
Reexports261526142122
Unspecified−70027690
Total exports, f.o.b.550595639675746798
Memorandum items:
Exports to South Africa237301322330321452
Percent of total455253524958
Emalangeni per SDR (period average)2.62.82.83.33.53.6
Source: Central Bank of Swaziland
Source: Central Bank of Swaziland
Table 34.Swaziland: Sugar Exports by Volume, Value, and Unit Price, 1990-95
19901991199219931994Est.

1995
(In thousands of metric tons)
Volume
Total423433417374245246
157129121121134136
United States742118152019
Other1922842782389191
(In millions of emalangeni)
Value
Total442461424409383442
European Union210202210231265277
United States762523162728
Other15623519116290108
(In emalangeni per metric ton)
Average unit price
Total404386357335440494
European Union516568608599618616
United States400437459466474497
Other314300241265321352
(In emalangeni per metric ton)
Average unit price
Total1,0441,0641,0171,0941,5611,793
European Union1,3341,5661,7321,9121,9792,037
United States1,0341,2041,3091,0891,3561,474
Other8128276886809911,184
Source: Swaziland Sugar Association.
Source: Swaziland Sugar Association.
Table 35.Swaziland: Other Principal Exports by Volume, Value, and Average Unit Price, 1990-95
19901991199219931994Est.

1995
Volume(In thousands of metric tons)
Wood pulp144154157179175171
Asbestos341025342728
Citrus fruits443133294943
Canned fruits19151392116
Coal154113130204228172
Value(In millions of emalangeni)
Wood pulp151182185187253441
Asbestos321447605949
Citrus fruits383841355556
Canned fruits515346354859
Coal121013298
(In U.S. dollars per metric ton)
Average unit price
Wood pulp405430415320407711
Asbestos357529661542586483
Citrus fruits331440426371316359
Canned fruits1,0411,2921,2251,131643862
Coal3030354126
(In emalangeni per metric ton)
Average unit price
Wood pulp1,0491,1841,1821,0451,4462,577
Asbestos9241,4591,8841,7692,0781,750
Citrus fruits8561,2121,2131,2121,1211302
Canned fruits2,6913,5603,4923,6912,2823,125
Coal778499124322
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 36.Swaziland: Merchandise Imports (c.i.f.), 1990-95

(In millions of U.S. dollars)

19901991199219931994Est.

1995
Food and live animals97.996.8110.2134.6136.0149.1
Beverages and tobacco11.013.425.419.231.534.5
Inedible crude materials19.335.745.841.077.585.0
Minerals, fuels, and lubricants79.295.0108.190.742.446.5
Animal and vegetable oils and fat3.13.04.64.79.710.6
Chemicals and chemical products63.666.066.686.6109.6120.2
Manufactures classified by material104.297.894.9129.5143.5158.9
Machinery and transport equipment181.5170.3193.4171.6212.9227.6
Miscellaneous manufactures72.167.774.181.585.9106.3
Commodities not classified by kind30.828.932.358.714.916.9
Total imports, c.i.f.663.0621.9694.5756.3803.7907.7
Imports, f.o.b.586.7633.4765.5771.9815.8894.1
Emalangeni per SDR (period average)2.62.82.83.33.53.6
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 37.Swaziland: Services and Income Account, 1990-95

(In millions of U.S. dollars)

19901991199219931994Est.

1995
Nonfactor services: credit110977810098103
Swazi Railways171012141414
Other shipment and transportation8108101112
Travel272625303035
Other official663732
Other private524429404039
Nonfactor services: debit-135-153-89-125-96-135
Shipment and transportation-13-10-9-15-23-27
Travel-14-20-14-27-21-21
Other official-41-40-30-38-12-3
Other private-68-83-35-45-40-83
Factor income: credit165171149141138138
Investment income556260586156
Official293118142922
Interest293118142922
Private253242443234
Labor income11110989837782
Factor income: debit-133-144-115-156-199-158
Investment income-102-113-89-129-171-128
Official and government-
guaranteed-11-11-5-7-8-6
Private-91-103-83-122-163-122
Property income-9-10-10-11-13-15
Labor income-21-21-17-16-15-16
Services and income: credit276268227241235241
Services and income: debit-268-297-204-282-295-293
Total (net)8-3022-41-59-53
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 38.Swaziland: Capital Account, 1990- 95

(In millions of U.S. dollars)

19901991199219931994Est.

1995
Direct investment (net)295450312340
Direct investment (in Swaziland)377981608158
Equity capital71441061
Reinvestment of earnings333428427753
Other long-term capital-912211332
Other short-term capital61929-4-52
Direct investment abroad-8-25-31-29-58-17
Equity capital0010-10
Reinvestment of earnings-4-9-30-19-6-7
Other long-term capital-1-5-1224
Other short-term capital-2-11-1-12-52-15
Long-term capital (net)-50-27-8-42-56-13
Public sector (net)-24-1210-12-173
Loan drawings (liability)15855410
Loan repayments (liability)-36-16-15-16-19-18
SASOL Funds (asset)-3-421-1-211
Private sector (net)-26-15-18-29-39-16
Private sector (liability)-151015919
Corporate equity securities-804-100
Loans (drawings and repayments)-710-36919
Private sector (asset)-11-26-19-34-48-35
Corporate equity securities00-100-2
Debt securities (money market)0-100-40
Loans (drawings and repayment)-1-10010
Other assets including pension funds-9-24-19-34-46-33
Short-term capital (net)-17-7-4-35-2-35
Public sector (net)-114-23-24-147
Received under SACU (liability)101126126125144181
Monetary authority currency/deposits (liability)00-10-1-1
Other liabilities000000
Receivable under SACU (asset)-113-122-147-149-158-173
Private sector (net)-6-1219-1113-42
Banks (net)512-3-76-5
Curreny and deposits (asset)413-15-76-5
Other liabilities (liability)0112010
Other (net)-11-2322-46-37
Trade credits (liability)512429-18-5
Other liabilities (liability)254-28-5
Trade credits (asset)-13-10-27-1714-13
Currency holdings (asset)-5-2021-132-13
Capital account balance-382038-45-35-8
Source: Central Bank of Swaziland.
Source: Central Bank of Swaziland.
Table 39.Swaziland: Public Sector External Debt, 1990/91-1996/97 1/

(In millions of U.S. dollars)

1990/911991/921992/931993/941994/951995/961996/97 2/
Multilateral loans9893107101101104102
IBRD2521182113107
IDA7776666
Arab League2222222
United Nations0000000
AfDB/AfDF45446051596767
EDF/EIB16161716171515
IMF Trust Fund0000000
IFAD3445554
EDESA0000000
Bilateral loans1051069799939088
United Kingdom20221614121010
Federal Republic of Germany36363548424544
United States1010106799
Denmark20212119211717
Canada0000000
Other191816131198
Financial institutions5431000
Total208203207201194194190
Memorandum item:
External debt (in percent of GDP)24.022.521.219.917.917.217.4
Source: Ministry of Finance; and staff estimates.

Fiscal year ending March.

As of June 1996.

Source: Ministry of Finance; and staff estimates.

Fiscal year ending March.

As of June 1996.

Table 40.Swaziland: Public Sector External Debt Service, 1990/91-1996/971/

(In millions of emalangeni)

1990/911991/921992/931993/941994/951995/961996/97 2/
Multilateral loans44414451576214
Interest1716151719183
Principal27252934384410
Bilateral loans1919212432365
Interest6666671
Principal1312161826294
Financial institutions5555500
Interest2111000
Principal4444500
Total68657080949819
Interest2524222425254
Principal43414956687315
Memorandum item:
Debt service in percent of export
of goods and nonfactor services3.73.22.92.82.92.72.0
Source: Ministry of Finance; and staff estimates.

Debt service on government and government-guaranteed debt with original maturity of one year and over, disbursed and outstanding; fiscal years ending March 31.

The first quarter of 1996/97 (April-June).

Source: Ministry of Finance; and staff estimates.

Debt service on government and government-guaranteed debt with original maturity of one year and over, disbursed and outstanding; fiscal years ending March 31.

The first quarter of 1996/97 (April-June).

Table 41.Swaziland’s Export Products and Country of Destination, 1993
TotalExports toShare of
exportsSouth Africaexports to
South Africa
SITC(In millions of emalangeni)(In percent)
Food and beverages1,212,059709,77759
Of which
Citrus fruit35,98734,41096
Canned fruit and fruit juices70,24840,92958
Sugar, mainly raw419,07967,11616
Nonalcoholic beverages504,230425,73484
Crude materials350,904174,69850
Of which
Coke and wood123,336n.a
Pulp and waste paper127,27053,56842
Manufactures classified by material201,342138,85669
Of which
Cork and wood manufactures5,3463,78271
Paper products60,70857,62495
Textiles and yarns69,96136,83053
Nonmetallic mineral40,17228,39471
Machinery and transport equipment177,538153,02186
Of which
General industrial machinery15,89313,08082
Other machinery and equipment159,016138,85187
Miscellaneous manufactured articles193,17398,49951
Of which
Furniture and parts thereof38,04912,55433
Apparel and clothing71,1217,71611
Footwear26,57026,34899
Other21,0597,906
Grand total (f.o.b.)2,156,0751,282,75659
Source: ASB 1993, Central Statistical Office.
Source: ASB 1993, Central Statistical Office.
Table 42.Swaziland’s Main Import Products and Country of Origin, 1993
TotalImports toShare of
importsSouth Africaimports to
South Africa
SITC(in millions of emalangeni)(in percent)
Food and beverages515,957477,30293
Of which:
Live animals33,45133,450100
Dairy products58,48350,33986
Vegetables23,84922,54495
Cereals4239629,46369
Flour, malt, gluten43,94343,943100
Sugar37,35431,64385
Brea and pasta23,89721,56490
Juice, jams31,23131,218100
Ice cream, sauces, soups47,21445,96297
Beverages59,47955,52293
Chemicals and fuels615,913579,91794
Inorganic chemicals33,13833,090100
Pharmaceuticals40,79536,17689
Fertilizers44,02035,28580
Toiletries, perfumes36,25129,41181
Soaps, polishes, wax39,06739,057100
Gelatin and adhesives38,46538,465100
Plastics70,35465,80994
Fuels (coal, petroleum)312,152311,741100
Manufactures classified by materials528313495,83194
Rubber and products thereof35,17032,90494
Wood and products thereof3205732,016100
Paper products70,65169,97999
Newspaper, printed343813023888
Special woven fabrics57,14332,14356
Iron and steel products157,481154,90098
Aluminum products35,56335,10799
Nonmetallic minerals42,61042,546100
Machinery, transport equipment, others802241587,42073
Nonelectric machinery247,468189,19976
Electrical machinery104,63495,59691
Vehicles319,556303,03595
Clothing92,83092,460100
Footwear51,90051805100
Furniture52,94452,902100
Grand total3,006,9102,637,58188
Table 43.Swaziland: Impact of SACU’s Tariff Cuts on Swaziland’s Industrial Imports
TotalImports fromPre-URPost-URPercentageChange in importsChange in importsTotal change
imports in 1993South Africa in 1993tariffstariffschange in pricefrom non-South Africafrom South Africa(E’000)
Own-pricePercentagePercentageChange inCross-pricePercentageChange in
(E’000)(E’000)(percent)(percent)(percent)elasticitychange in import demandchange in importsimports (E’000)elasticitychange in importsimports (E’000)
Nonmetallic minerals42,61042,3462.01.0-1.0-2.02.01.011.0-1.0-417-416
Metallic ores, slag and ash2,30823083.00.0-2.9-2.05.82.901.0-2.9-67-67
Inorganic chemicals33,13833,0906.01.0-4.7-2511.97231.3-6.0-1,974-1,971
Organic chemicals22,57712,5969.02.0-6.4-2.516.29.89811.3-8.1-1,023-43
Pharmaceuticals40,79536,1762.01.0-1.0-2.52.51.5691.3-1.2-449-379
Fertilizers44,02035,2852.00.0-2.0-2.55.03.02621.3-2.5-875-613
Dyes, finishes and pigments15,80514,26611.02.0-8.1-2520512.41911.3-103-1,463-1272
Toiletries, perfumes36,25129,44122.015.0-5.7-2.51458.85981.3-73-2,137-1339
Soaps, polishes, wax products39,06739,05719.015.0-3.4-2.5855.111.3-43-1,661-1,660
Gelatin and adhesives38,46538,4558.03.0-4.6-2.511.77.111.3-5.9-2252-2251
Explosives, fireworks, matches5,4915,49110.03.0-6.4-2.516.19.7013-8.1-442-442
Photographic materials3,0803,0516.05.0-0.9-2.52.41.4013-12-36-36
Lubricating oils, pesticides20,00919,9839.04.0-4.6-2511.67.0213-5.8-1,160-1,158
Plastics and products70,35465,30915.010.0-43-2511.06.730213-55-3,620-3317
Rubber and products35,17032,90413.07.0-53-5327.922.65122.6-14.0-4395-4,083
Hides and skins, raw leather1,0501,04811.04.0-63-1.610.03.700.8-5.0-52-52
Leather products7383731320.025.042-1.6-6.6-2.4-20.833241239
Furs and fur products53653617.020.02.6-1.6-4.1-1500.82.01111
Wood and wood products32,05732,01612.07.0-45-0.73.1-1.4-103-15-493-494
Cork6476472.00.0-2.0-0.71.4-0.600.3-0.7-4-4
Baskets63660013.015.01.8-0.7-12050030.644
Wood pulp and products17318173184.00.0-3.8-0.72.6-12003-13-229-229
Paper and paper products70,65169,97910.07.0-2.7-0.615-12-803-0.8-525-533
Newspaper, printed materials34,38130,2387.04.0-2.8-3.08.45.623215-42-1272-1,039
Silk and silk products73573517.00.0-145-1.116.62.000.6-83-61-61
Wool and wool products2,2642,26420.013.0-5.8-1.16.70.800.6-33-75-75
Cotton28,2052436943.024.0-133-1.115.11.9680.6-7.6-1361-1,793
Flax, hamp, jute4,9802,6768.06.0-1.9-1.12.10360.6-1.1-28-22
Man-made filaments3,1303,13043.021.0-15.4-1.11752200.6-8.8-274-274
Man-made yarns5,7505,27943.021.0-15.4-1.117522100.6-8.8-463-453
Wadding, felt, nonwovens4,7724,74217.016.0-0.9-1.11.00.100.6-05-23-23
Carpeting4,2282,72927.026.0-0.8-1.10.90.120.6-0.4-12-11
Special woven fabrics57,14332,14328.019.0-7.0-1.18.01 JO2460.6-4.0-1288-1,042
Other textile fabrics4,1194,11614.015.00.9-1.1-1.0-0.1-00.6052121
Knitted or crocheted fabrics20,5267,45941.022.0-135-l.l15.41.92470.6-7.7-573-326
Clothing, knitted or crocheted683556832883.040.0-235-3.992.168.6182.0-46.1-31,468-31,450
Clothing, not knitted or crocheted24,47624,13262.046.0-9.9-3.938.728.8992.0-19.4-4,671-4372
Bedding, curtains21421439.026.0-9.4-3.936.727302.0-183-39-39
Footwear51,90051,80529.023.0-4.7-3.918213.6132.0-9.1-4,723-4,710
Hats and headgear97797518.020.01.7-3.9-6.6-4.9-02.0333232
Umbrella and walking sticks65665622.025.02.5-3.9-9.6-7.202.04.83232
Nonmetallic mineral products11,36411,3619.05.0-3.7-2.07.33.701.0-3.7-417-417
Ceramic products11,43911,43412.09.0-2.7-2.97.65.001.4-3.8-436-436
Glass and glass products14,89914,84910.07.0-2.7-1.64.41.610.8-2.2-324-323
Precious stones2,0662,0608.03.0-4.6-2.913,28.611.4-6.6-136-135
Iron and steel26,08024,3116.03.0-2.8-1.44.01.2210.7-2.0-489-467
Iron and steel products157,481154,90010.07.0-2.7-1.43.91.1300.7-1.9-2,999-2,970
Copper products5,1973,9458.04.0-3.7-2.07.43.7461.0-3.7-146-100
Nickel products5433294.00.0-3.8-2.07.73.881.0-3.8-13-4
Aluminium products35,56335,10718.04.0-11.9-2.023.711.9541.0-11.9-4,165-4,111
Lead products6946901.00.0-1.0-2.02.01.001.0-1.0-7-7
Zinc products1,6191,6195.00.0-4.7-2.09.54.701.0-4.7-77-77
Tin products5905903.00.0-2.9-2.05.82.901.0-2.9-17-17
Other metal products2102101.00.0-1.0-2.02.01.001.0-1.0-2-2
Tools, implements, cutlery16,31916,23313.010.0-2.7-3.69.56.961.8-4.8-774-768
Locks, screws13,60312,98114.011.0-2.6-3.69.46.8421.8-4.7-613-571
Nonelectrical machinery247,468189,1997.02.0-4.7-1.04.80.1540.5-2.4-4,509-4,454
Electrical machinery104,63495,59612.07.0-4.5-1.04.50.000.5-2.2-2,134-2,134
Railroad equipment2,6782,6764.00.0-3.8-3.312.68.701.6-6.3-168-168
Vehicles other than rail319,556303,03521.012.0-7.4-3.324.417.02,8021.6-12.2-36,965-34,164
Aircraft131,9739170.00.00.0-3.30.00.001.60.00
Ships1571578.02.0-5.6-3.318.212.701.6-9.1-14-14
Scientific instruments14,86011,8664.01.0-2.9-1.13.10.270.5-1.6-185-178
Watches, clocks1,6791,6297.00.1-6.5-1.17.00.500.5-3.5-57-57
Musical instruments1,1671,1666.00.0-5.6-1.16.10.500.5-3.0-35-35
Furniture52,99452,90219.015.0-3.4-3.010.16.761.5-5.0-2,667-2,661
Toys2,1241,96817.03.0-12.0-2.124.612.7201.0-12.3-243-223
Miscellaneous products2,5422,54219.09.0-8.4-2.117.38.901.0-8.7-220-220
Total2,075,7211,760,3766,952-127,779-120,827
2.2%-7.3%-5.8%
Source: ASB 1993, Centra Statistical Office; tariff data provided ty the Industrial Development Corporation; and own-price elasticities for substitution effects use merchandise imports as proportion of apparent demand, or GDP plus merchandise imports minus oqports from the authorities.
Source: ASB 1993, Centra Statistical Office; tariff data provided ty the Industrial Development Corporation; and own-price elasticities for substitution effects use merchandise imports as proportion of apparent demand, or GDP plus merchandise imports minus oqports from the authorities.
Table 44.Swaziland: Impact of SACU’s tariff cuts on Swaziland’s Industrial Exports
1993Pre-URPost-URPercentageCross-pricePercentageChange in
Exportstariffstariffschange inElasticitychange inexports to
topriceexportsSouth Africa
South Africa
(E’000)(Percent)(Percent)(Percent)(E’000)
Hides, skin raw2,67511.04.0-6.30.5-3.0-81
Cotton seed7387.07.00.00.30.00
Round timber for pulp16,7312.00.0-2.00.2-0.4-69
Unbleached woodpulp1,2224.00.0-3.80.2-0.8-10
Wastepaper6,6324.00.0-3.80.2-0.7-46
Cotton lint20,9430.00.00.00.30.00
Rubber manufactures3,84013.07.0-5.31.6-8.4-324
Cork and wood manufactures4,05512.511.0-1.30.2-0.3-11
Paper products63,29210.07.0-2.70.2-0.5-311
Textiles, yam37,93427.416.4-8.61.2-10.1-3,833
Nonmetallic minerals42,2689.05.0-3.70.6-2.2-931
Manufactures of metals7,7401.00.0-1.00.6-0.6-46
Machinery and transport equipment208,9729.54.5-4.60.3-1.4-2,863
Furniture and parts thereof11,04719.015.0-3.40.9-3.0-334
Travel goods, handbags75419.09.0-8.41.2-9.8-74
Apparel and clothing accessories9,96972.540.0-18.81.2-22.0-2,197
Footwear24,14829.023.0-4.71.2-5.4-1,314
Miscellaneous manufactured atricles41,11419.09.0-8.40.6-5.3-2,177
Total504,072.9-14,621
-3%
Source: ASB 1993, Central Statistical Office; tariff data provided by the Industrial Development Corporation; and cross-price elasticities use merchandise imports as proportion of apparent demand in South Africa
Source: ASB 1993, Central Statistical Office; tariff data provided by the Industrial Development Corporation; and cross-price elasticities use merchandise imports as proportion of apparent demand in South Africa
22Prepared by Salim Darbar.
23Meridien Bank was established in Swaziland in 1991, through an acquisition of two local institutions—the BIAO Swaziland and the local BCCI branch. Meridien was primarily involved in providing confirmed letters of credit for trade finance. In response to the bank’s failure to confirm a letter of credit in December 1994, the CBS seized the bank. Subsequently, the FNB agreed to acquire the local Meridien branch, with a condition that the outstanding losses would be covered. The CBS extended a loan of E 30 million to the FNB, backed by a government bond.
24In 1986, the Rand Monetary Area was replaced with the Common Monetary Area. Under the new arrangement, Swaziland has the right to alter the exchange rate with the rand; commercial banks are subsidiaries of foreign banks, not branches of South African banks; and, these banks are subject to the prudential requirements imposed by the CBS.
25The analysis of broad money growth in Swaziland is complicated by the substantial amount of unrecorded South African rand in circulation in the economy.
26The government created the capital investment fund (CIF) as a repository for unspent portions of the capital budget. An amount of E 165 million was transferred into the CIF in 1990/91. The CIF is held with the CBS, which receives a fee for managing the funds. Because these funds are invested abroad by the CBS, they directly contribute to an increase in foreign reserve holdings.
27The effective ratio of required liquidity to deposits is less than 17.5 percent, as the SDSB is required to maintain liquid assets only at 10 percent of deposits as compared with 17.5 percent for commercial banks.
28See the paper on recent economic developments (SM/94/166) for further details on the operations of the stock market.

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