Wednesday, 13 April 2011

Swaziland protests slow SA exports

 


Swaziland1
Independent Newspapers
Inkosi Mswati III of Swaziland. Photograph: Bongiwe Mchunu.
Protests in Swaziland yesterday shut down the major economic hub Manzini and slowed down South African exports to the tiny kingdom as armed forces spared no effort in quashing the first of four days set for an “uprising”.
Both Manzini and Mbabane, the administrative capital, were quieter than usual throughout the day as many businesses, especially those in Manzini, remained closed.
“Some of our members informed us that they would not open… because they feared that protest action might turn violent,” said Zodwa Mabuza, the chief executive of the Swaziland Federation of Employers and Chamber of Commerce.
No figures on the effect of the protests were available at the time of reporting yesterday.
A number of people were injured during clashes with police, among them a 20-year-old man who was on his way to board a bus home.
“The government assured us that everything would be fine and I decided to come to town to do some shopping,” said Muzi Mkhatshwa, a shopper, who not only found shops closed but he got a gaping wound in his head.
Police, in hot pursuit of protesters, blockaded public transport terminals and searched buses, which affected the transport industry.
Comment from labour unions, political parties and pressure groups could not be obtained as most representatives had been arrested earlier.
Police spokeswoman Wendy Hleta said yesterday morning that “hundreds of protesters” were being interrogated as they had been warned that the protest was illegal.
Mabuza said: “This is very unsettling because the confrontation does not resolve the issues that the labour movement is complaining about.”
She said most of the workers’ demands, such as nullifying gazetted circular number one, which gives politicians lucrative perks, were also relevant to employers. “ Circular number one widens the gap between the rich and the poor.”
And for the business sector, argued Mabuza, unresolved political issues resulted in decreased productivity as many businesses yesterday suffered losses. Among them were the hotels that had to deal with last-minute conference cancellations in the face of uncertainty.
A source close to hospitality industry said organisers of conferences were unsure of the extent of the uprising and opted to shelve plans until there was certainty of security, which explained why business was slow.
However, area general manager of the Sun International group Lance Rossouw said any effect the demonstration would have had could not be quantified at this stage. The group had anticipated a quiet period prior to the Easter rush.
“There were no major cancellations, the majority of people have chosen to come and stay with us,” he said.
Jiten Bechoo, an equity analyst at Avior Research, said Illovo Sugar had big business in Swaziland, producing 211 000 tons of sugar in 2010, of which 60 percent was produced locally. He said 109 000 tons were consumed by the local population, 50 000 tons went to the Southern African Development Community region and 47 000 tons went to the rest of the world market.
Swaziland contributed 9.4 percent to Illovo’s revenue and in terms of operating profit, the country accounted for 8 percent. South Africa’s contribution to Illovo was 40.7 percent, Bechoo said.
He said Swaziland was very profitable for the company, which had also undergone expansion plans as it aimed to produce ethanol from sugarcane for fuel and electricity.

He said the envisaged impact on the sugar production industry included workers missing work, which could cause delays in harvesting and on production with cane that is being delivered to mills.

Cosatu and other pressure groups manning a solidarity blockade on the South African side of the Oshoek border post were not able to entirely disrupt the flow of goods.
Cosatu’s deputy international relations secretary, Zanele Matebula, said the federation considered its input successful as it delivered a memorandum to representatives of the Mpumalanga provincial commissioner demanding Swaziland democratise. It was awaiting a response in fourteen days.
Rich Mkhondo, the head of corporate affairs at MTN, said the protests had not affected the group’s operations.

“Our operations in Swaziland are running smoothly. We don’t subscribe to any political parties, movement or affiliation,” he
said. - Manto Phakathi and Ayanda Mdluli

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