The Minister of Finance recently announced that the country will slash the number of parastatals from 49 to 30. But, how much does each parastatal cost the government per year? Well, the Eswatini Revenue Service receives the biggest subvention from the government, as they get around E436 million, with Red Cross receiving the least amount at E9.8 million.
Photo Credit: www.insidebiz.co.sz
By Ntokozo Nkambule
Eswatini’s State Owned Enterprises (SOEs) are now a huge burden on the economy and on the fiscus, with transfers to Category A parastatals approaching the E3 billion mark (E2, 4 billion) in 2020/21.
This is information contained in the SOEs Restructuring Framework in Eswatini 2021 report prepared by the Eswatini Economic Policy Analysis and Research Centre (ESERPARC) for the Ministry of Finance. The report unearthed that the number of SOEs in Eswatini is on the increase, with some mandates admittedly encroaching on each other and creating the risk of duplication of roles.
The framework further notes that that the pace at which the country is setting up these enterprises is concerning; as most Bills tabled in Parliament come with a quasi-government entity attached to them, which points to lack of policy/framework for establishing SOEs in Eswatini.
So, how much exactly does each SOE cost government per year? Well, according to the report, the Eswatini Revenue Service (ERS) receives the biggest subvention from the government per year, as they get E436 million. The ERS is followed closely by the Royal Eswatini National Airwaves Corporation (RENAC) which receives E356 million, the third being the University of Eswatini (UNESWA) at E338.5 million. Worth noting is that these figures are based on the 2020/21 national budget.
Subvented Entities
- Eswatini Revenue Service- E436, 000,000
- Royal Eswatini National Airwaves Corporation (RENAC)- E356,330, 637
- University of Eswatini E338, 500, 609
- RFM – E252 774 694
- ESWACAA – E149 312 724
- Good Shepard – 87 314 845
- ETVA – E41 282, 042
- NERCHA- E38 503, 000
- EIPA – E22 634 900
- RSTP – E19 385 500
- ENTC – E17 777, 945
- CMAC – E15 771, 288
- NDMA – E15 000, 000
- ETA – E14 876, 930
- ESWADE – E13 942 293
- EEA – E13 922, 925
- ER – E11 946, 843
- EMCU – E10 800 000
- SEDCO – E10 278 360
- YERF – E10 000 000
- RED CROSS – E9 886 995