Development planning in Swaziland : presented by the Government of Swaziland

UNITED NATIONS

ECONOMIC AND

SOCIAL COUNCIL

Distr.

LIMITED

E/CN.14/CAP.2/INF 15

4 December

Original: ENGLISH

ECONOMIC COMMISSION FOR AFRICA Conference of African Planners Second session

Addis Ababa. 4-15 December 1967

DEVELOPMENT PLANNING IN SWAZILAND

(Presented by the Government of -Swaziland)

M67-1712

e/cn.h/cap:.2/inf 15

. ... . development planning in swaziland _ u

■ ' Swaziland has had five Development Plans'since 1948. These plans

* have coincided with the allocation of'development funds by the UKand-'-

'X ... _ , ■

<y have''taken'the form of public sector expenditure programmes rather than

development plans in the wider sense of the term now in use- The'sectoral

proposals were'prepared by the various departments, education, agricul-ture, Health,' public works, and made into unified plans' by the department'

responsible for finance and "economic' development, in the-light of the-

"funtis available. Plans had to receive the'approval of the UK ■Government, which' released funds quarterly on proof of need. The implementation--'■

of sectoral programmes was the responsibility of departments,-with' overall financial control exercised by the Finance' Department." ••'

2. . Swaziland received its pre-independence constitution in April 19^7»

f '*--■'■ ■ ■ ■ • ■ ' -

and a Ministerial system was introduced- The department dealing with financial affairs became the Ministry of Finance, Commerce and Industry, which retained control of development planning.-. The new Government is, however, considering the establishment of a planning unit attached to the office of the Prime Minister- The preparation of a country paper

for the 1967 Conference of African Planners therefore provides a suitable

opportunity for reviewing past planning policies and procedures and what they have achieved, and for considering how this experience can be of use in deciding the precise form and functions of any new planning unit.

3. Swaziland is a small country, less than 7,000 sq- miles in extent and with just under 400,000 people. It is bordered on three sides by the Republic of South Africa and on the fourth by the Portuguese province of Mozambique. A little over half the country is occupied by the Swazi under a system of communal ownership. Apart from a few small areas"

reserved by Government for urban development the remainder is held under freehold title and nearly all of it is owned by Europeans, In terms of a Customs Agreement dating back to 1910 Swaziland has a common external customs tariff, similar excise duties and free exchange of goods with South Africa. Swaziland also uses South African currency though it

. .... ■"■ . -.■■:■.-.■■>■ S?--l

operates its own exchange and import control*

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Page 2

4. The first Development Plan (1948-56) was launched on a sea of immense

financial and economic problems,, The per capita Public Revenue was just

over£2j and well over a quarter of it came from one mining company. -

The per capita figure for exports was about &.7.10/- but p]?aQtioally all

export production came from mining, and agriculture on European land* "

In the Swaz.i areas conservation farming was.unknown; ploughing was carried out up and down hill and extended to sponges and the very banks of streams; seed was planted by broadcast methods; kraal manure was regarded as a saleable commodity and virtually no use was made of arti ficial fertilizer,, Only about 17 per cent of African children of school age were at school, and it was .not until 1951 that the first Swazi

student wrot.e iho matriculation exam (that of the University of South

Africa) at school in his own country,. Medical facilities were limitod, 10 doctors and 214 hospital beds for just under 200,000 people. Malaria,

tuberculosis, and bilharzia were prevalent. The road system in 1'948

was primitive, none of it black -topped," and, with the onset of the summer rains, large stretches became impassable: bridges were lacking, even over some of the most important rivers, and travelling at all seasons of the year was very difficult/ Postal and telephone services were very poor.

Fren in the towns life was uncomfortable since there were no electricity or' Beverage schemes and a piped water supply was the exception rather '

than the rule. : '

5- There was accordingly enormous scope for development, and the problem was essentially one of deciding upon priorities. Following an economic appraisal, it was decided that the most urgent problem was to:

stabilize and improve the use of the soil in'the Swazi areas, and between I948, when the first Development Plan came into operation, and 1955 a minor revolution had been achieved. By 1955 "the greater proportion of 'arable land had been protected by the establishment of grass strips and

the construction of major contour furrowso This was accomplished largely by'a spectacular increase in the extension staff whose efforts in■this"

period were inevitably directed mainly towards the protection of the soil rather than towards achieving an increase in its"productivity. '

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Page 3

The second priority was education, with emphasir; on African education necessarily directed to primary enrolments There, was also increased

expenditure on medical services notably to eradicate malaria and on the geological survey department to investigate the prospects for mineral development.

6. During the next three plans, which covered the years 1955 to 1966,

development policy underwent a ma.jc-r reorientation. Even before the start of the 1948-56 plan very heavy investment had been made by the .Commonwealth Development Corporation and by private enterprise, mainly

in the forest industry and irrigation agriculture, and- it was abundantly clear that major improvements would have to be made to' the road system if it was to cope with the large tonnages of traffic involved in the' development and exploitation of the newly established projects. Under

the first (1955-60) of the three plans therefore by far the largest

allocation of funds went to road development. Other infrastructure expenditure in this plan included the construction of Government housing and public buildings, and the improvement of water sewerage and electri city services in the townships. A start was also made on what proved to be a series of railway surveys- The,- Agricultural Department was the second largest spender of development funds* Here tbo main emphasis- continued to be placed on the conservation of soil and water supplies, both by mechanical means and by stock redistribution; on the teaching of improved agricultural and animal husbandry practices; and on the

establishment of an export research branch, including a soil survey unit.

The balance of development funds was devoted to education, telecommunica tions development, medical services and geological survey in that order.

The second plan (1960/63) saw the consolidation of this programme. The

main emphasis was placed on the task of completing the infrastructure needed for the successful development of primary and secondary industry and the bulk of the available development funds was again spent on public works, principally roads. The main project was the beginning of a black- topping/programme which, by 1964 ^^ provided 95 miles of first class highway. This period also saw the start of two large scale development

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Page 4

projects designed to have an important bearing on the future economy of

the country. The first was the rail link between the iron ore deposits in north western Swaziland and the coast at. Lourehy? barques. Although

primarily designed to handle ore traffic, the line was routed through V some of the most productive areas of Swaziland with a view -J-> topping

other traffic for export overseas. The second project was the hydro

electric scheme at Sdwaleni which was designed in its initial stage to meet the power requirements of the iron ore mine, as well as those of the towns of Mbabane and Manaini and the Malkerns area- Lack of power had been an inhibiting factor in the development of secondary industry in Swaziland .and it was hoped that when the electricity undertaking was commissioned in I964 the last main obstacle in the way of such develop ment would have been removed. ■ During this period eduoation overtook agriculture as the second priority, and in the third period (1963/66), the .emphasis on education increased.-' This emphasis was however masked by .the heavy infrastructure expenditure on the railway and the electricity projects. By the end of the period the programme of infrastructure had been very largely completed and in the fifth plan (1565/68) the educa

tion sector emerged as the first priority, followed closely by agriculture.

7. The amounts and percentages of development funds allocated to the various sectors during these five plans is set out in Table 1. What

did this expenditure achieve? Some of the results are set out in Table 2.

1/ (This does not show up fully in Table 1 because part of the expendi

ture, relating to the establishment of .an agricultural college,, is

shown under agricul ture) ■>

TABLE1

ii/CN.l4/CAP.2/INF 15 Page!5

Infrastructure:-■■■ Education;..• Agriculture Health,.■";:. GeologicalSurvey"; Other.Social:r

Administrative

"■'-:'<■'.

1948/56

R'000 112 474 8C6 348 .^60 - 2,000

5. 23. 40. 17. 13. - -

6. 7; 3. 4-

o:

R1 4, 5,

1956/60

000 580 200

637

160 155 7^2

7 1

%

9-9 3.5 1.1 2.8 2.7 -

1960/63

R'000

:"..8,:352 ;;! 1,190

610 ;347 ■35 10,354

1*

79 11 5 3.3 .3" .8 -3 .3 -

R1 20 1 2 26

1963/66v

000 ,300 ,878 ,252

"742

:74 384 416 ,046

1o

77.9 7.2 8.6 2.9 .3 1.5 1.6

1966/68

R'000

1,895

2,146 1,915 162 .82 180 316 6,696

28.3

3-?-l

28.6

2.4

1.2 2.7 .4-7

1 - frotal

R'OOO 35,239

'■.5,888

.6,220

'1,7159

■606

: 564

732 51,008

i*

69.1 11.5 12.2 3-5 1.2 1.1 1.4 100.0

E/CN.14/CAP.2/INF 15 Page 6

TABLE 2

Public Revenue Revenue per capita Exports

Exports per capita

Total Capital Formation 1960-1966

No. of African Children at School 'fo of School Age Population at School No. of African" Males in Employment

in .Swaziland :::

No. as $ of Total

Miles of Public Road

Maintenance Expenditure per mi le- Slectricity Generating Capacity No. of Telephone Connected : Urban African Population

*

1948 ; ; -

R

" 780^000 -" ■ - 4

2,870,000 ; ■ c 14

11,600 "' ; c 17?6 .. ' c 7,500(1946)- i c

c 20$ ;

1124 ■-

45 . ■

less than ..2 mw. : -

380(1954.)

less than 3000; :

8. These figures are impressive, even taking into account a

; t

.*.: !

19 66

R 6,805,000

;" : 17

3.8,186,000

c 96

95,000,000 56,500

c 47^

40,coo

. c 55^

1326 :■ 186

* ■ 45mw<

s . 3700 .45,500

drop in the

value of money of at least 40 per cenj (based .on /the S.A. wholesale price

index). They do not however tell the whole story; indeed it may be said

that they conceal as much as they reveal. Khat they"do"not -bring ^out is

the following African Population

European Population

Other Non-African Population Wage Employment Participation

Rate (Males)

No. of Income Tax Assessments

1946 . ■'-. . ■ : 181,000 ■ '

3,000

1,000 :

African

"European - Other Non-African

African 201 Liability

- European 4823 "

:•". :1966

; 382,000

4 ,uou a Orrf

487°

!. R20,000

62/0

R2,800,000

9. The heavy investment in infrastructure expenditure certainly: promoted

economio development on a very large

scale, .but it did so in

r, ...

a situation

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Page 7

j because of a combination of inadequate educational facilities and thei preservation of the traditional social structure, the'Swazi population was riot equipped to take advantage of the opportunities for employment except at the unskilled level- The result was" an influx Of foreign labour, both black and white, to fill even the semi-skilled posts- This influx

■was of course facilitated by Swaziland's geographical position between South Africa and Mozambique, and the inflow of private capital which gave rise to this influx was largely attributable to Swaziland's close economic relationship.with South Africa. The effect cf this investment was not therefore .widely spread through the population, and a comparison of 1956

■and 19.66 census figures shows that the economic activity rate for African

males.has-in fact remained static, and therefore only kept pace with the growth of the working age population

10. What right does the experience of the past thror 5n the planning problems of the future? The central economic task is to enable the ■ Swazi population to play a full part in the" development1 of the country*

This requires an all-out attack on two inter-related problems^, the development of education and training facilities and the transformation

of the rural_ economy., 'This can only be done if_there are'well defined-.-

targets for absorbing trained manpower and for integrating the rural

subsistence sector into the cash economy of trade and industry. It will ;

also require a very larpo expenditure programme in both the capital and

th'e recurrent budgets,

11. Increased expenditure is a key consideration in the light of Swazi land's present budgetary position- The build up of recurrent expenditure "

which has accompanied infrastructure investment has not yet been offset by increased public revenue, and it will take until about 1971 to balance the recurrent budget at roughly the present level of expenditure* This has two

important consequences, Firstly, in the absence of budget surpluses

Swaziland will have to look to foreign sources for a large part of the

public, as well as the private sector, investment capital needed for

future economic development. Secondly, because international aid' will

nof-cover all the types of expenditure which the educational and agricul

tural development policies will require, it will be necessary to accelerate

E/CN.14/CAP.2/INF 15 Page 8

development of primary and secondary industry to provide the expanded tax base from which to raise quickly the additional revenue needed to finanoe these expenditures. This may present a ;;.ilemraa, because it will tend to accentuate the present disparity of Incomes and living standards-between

the rural and urban communities. . .,

12. 'As the development of-industry is essentially a function of .the private sector, there must be adequate inducements to attract investment capital.

Such inducements affect a wide range of Government policies-, taxation, labour, wages, foreign relations etc. apart from the more basic factors affecting the location of industry. It must be assumed that the most likely source.of private sector funds will continue to be South Africa. In addi tion by reason of the Customs Agreement South Africa is virtually an-"exten- sion of Swaziland's domestic market* which is an important factor in-indus- trial expansion. All development planning in Swaziland must therefore take account of economic relations with South Africa=

13* . This must not.be taken to imply, however, that Swaziland should "Took only to its immediate environment in Southern Africa. This point is" brought

out in. Table 3- • ' '

TABLE 3 .

YflAT

I960 1961 1962

1963 1964

1965 1966

Swaziland's Total Exports value in R,000

■ 10,864

12,513

15,055

21,519 22,211

■ 29,920

, . .--38,629

Exports to and Total Exports to S. Africa

5,402 6,737 9A35

9,540

7,979

5,082 7,553

Imports from S- Africa Total Imports

value in R,000 8,200 10,204 14,502 19,750 19,000

26,471

■ ■• 25,685

Total Imports from S. Africa

5,74C '

7,143 . . U',151

13,825

. 13,300 - 18,530"

■ 17,980

This shows that South Africa is providing a progressively smaller...proportion of the export market. In view of the similarities in the export structure of both countries in so far as most primary products are concerned, this trend is likely to continue. Table 3 also demonstrates that.Swaziland.is important much more from South Africa than it is exporting.to that country.

Although there are no balance of payments or foreign exchange implications in this it must clearly be in Swaziland's interest to correct this.imbalance by developing those manufacturing and processing industries which can take full advantage of being part of a common customs, trade and currency area.

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14. One of the major planning problems will be how to transform the rural subsistence sector without creating insuperable difficulties for a manpower planning policy- The position in the rural areas will in any event be difficult enough in the light of anticipated population trends. It is

estimated from 1966 census data that the African population will rise

from its present level of 400,000 to 510,000 by 1975, i-e. a growth rate of 2.9 per cent per annum and that over the longer terra the position will be as follows:-

TABLE 4

Projections of total African population 1980-2000

■ _^_______________________________________________________i_______________

Year Constant Fertility Declining Fertility

. Declining Mortality .

579,293

641,244 691,047

755,202

832,293

Even on the assessment of declining fertility the rapid natural.growth of population must bring with it serious social and eoonomio problems. .A very tentative assessment of population growth in relation to available, land is as follows.

TABLE 5

Human Carrying Capacity of Agricultural Land: Swazi Areas

Population (1967) 300,000

No. of Families (7 persons) 43,000

Area (acres) 2,400,000

.Cropland available (slope under 22%) 605,000

'Cropland per farA.17. (acres) 14

'Natural Pasture, acres 1,500,000

Yields', per acre .: \

c 255,000 acres x R7 per acre « fil.9_

c 350,000 acres x B13 per acre- R4.6m

Add Rl per acre for pasture = El.5m R8.Qm

Average Income per family p.a. RI85.

'Yields of R7 and R13 p.a. assume improvement in the general standard .to

'master' farmer level.

1980

1985 199*

1995

2000"

1 1

599 708

843

,009 .216

,536

,825

,430 ,995 ,726

Page 10

15« An average income per family of Sl85 is about the equivalent of the present minimum wage rate for unskilled rural labour. Population increase unaccompanied by a dramatic rise in productivity would therefore expand cultivation to unsuitable land, and shorten the rotational period for land at present under cultivation; both of which would lead to ..

lower per capita income. (Some relief would, be possible by introducing

irrigation where practicablej but the cost of this would represent.an

investment which it is difficult to visualise the country being able to afford, except on a relatively small rxaie). To avoid lower .per capita

income it would be necessary to absorb the population increase in wage employment; either on other agricultural land? in trade .or in industry, fchile these calculations probably slightly overstate the present pressure on land., population, increase will soon swing' the balance the other way e.g.

by 1971 the African population-will ■■reach 450,000. ,"'""' 16. Although a certain amount of information is available on all - these

problems? and indead a great deal on mineral and water resources, ■*a. good deal more is'needed to understand them properly and to frame plans which will contribute effectively to their solution. It is implicit in this view that tlie uxiccess ci past" 'development policies, especially in

education'and agxiculture, cannot- easily be determined. However, in the

case, of education the* starting poinv vas so low (17 per cent see Table 2)

■that it could hardly bra argued that any of the projects were misconceived for lack of a comprehensive plan. As regards agriculture, while there has been no major broak-through in land tenure, livestock improvement and the general; i_eye3;:;Q.t.iprod>activi-.tyj- there have bean notable.successes, in soil conservation, crop research and, latterly, the development of ■"

agricultural education. Work on improved data collection has .already started in a number cf Ministries- A oarefully planned population cerijjus

was carried out in 1966, and a statistical and economic unit was set up

in the same year., Tho basis for manpower planning has been laid and the

development of an agricultural "statistical service is "in hand. A start

has been made to tho preparation..of national .income statistics, one difficulty in tho way cf producing these statistics has been the customs unipri with: South, Africa P and the'consequent absence of 'ready made1

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Page :11*" v»-.^'VW

import statistics* Another difficulty has teen the finding of trained staff to undertake /the collection' of-the. basic-data ".upon^ which-planning depends. ' As a..,rssult the development of a.is-tatistical and planning organioation h'ai:

had tcinclude the training of ^even-low level staff', -which has inevitabiy impeded-.progressc *. •: .■ ■ --- <.<"■"'?r..-- *-j- ' ~. ' ' ~> --■ -'

17**' Finally, there'is th'e 'question1 of how plane shouid "be prepared and

implemented.. In Swaziland the sectoral approach has been adopted, and

•■ "■ ■ r ■ ' •*. *.--r- -:' v j ;,; ,. , "~ .' ..' * I '.'., '*'.-'■.'' :. ■- Y't.1'.:>.■■':'• ■ ..■'■..■. -. v -•' v .. ..:■

development plans have consisted of groups of sectoral projects which

r - ,-. •■'■•■ • ■ .-;• ■ .'^ .; r;. ... ■,,'.-. !:.:.■ "■■ .■-: -• ■--■.■ - ' '*-■■■■ .■'■-■ :- $ *-•

have""tee'n""brought' togetlief 'to "the extent that funds have been available

to finance'"them." The co-ordinating authority, the department responsible

fofrfinance "arid economic development, has therefore to a large extent

influenced priori ties* This approach has so far been suited to plans

.'. >■ --W'- >: vi>n'-> -v :j.\}; i'-:-' ^ > l* ." ■_: it:-*:,'? .":;.-.'*'. ■ v - - --■

which have- concentrated on infrastructure projects because these have general-ly^.been^clo'sely- related to' the -'normal3" economic and financial

functions of the coordinating authdri-'t'yj-f; e.rgi° railway -arid-■'electricity '■J*

development. It has also had the merit that sectoral plans, are exe.cuted

by the same Ministry cr authority which prepared them (agriculture,

education, communications etc-)"

18. Some countries have preferred to, esrta'bli:shf,a^separate planning- j ^,

organisation which,, thougtuit may, draw, on-..the experience and advice of.

Government departments, is solely responsible^ tor.the Government for , formulating, planning pplicies.- .This.-devel^opment-stems from the. view* t_..

that r departments are.of ten too concerned#.v;ith: their, day to.. day:- functions to take the wider view, .and that even^if-they.dOy thi.s they. arie>liable, to do so, in isolation- %These.countries have f elt ,rthat^a separate-planning

authority .is necessary. . . ,r ■ ,.>:i , - .. ... ..

19•• 'In ^considering^ tlie matter i-t'may-;be useful ■"'■tov say something about-

the. planning functions itselfV ' There'^i-s'-nbihihg' new 'in' the concept ofn

planning. It springs from a long-held acceptanrce"Jof 'the 'fntef-relatediiess „ of all social and, economic,activity, and its7functron;is to. overcome.,the •.; ; if* compartmentalism _of Government organisation,-.and.-to ensure that polici-es

in the various sectors are ..contributing to .the main, social .-and: economic- objectives within a ..well. coordinated framework.- Tp/achieye, this^it is1.*

Page 12

necessary ^o know -as..much-as.-pqssible a"bout_exis.ting. social.-and. economic - ■■

m£9^.^Bms-r;:,Tlli.3 i^YQiyss ^e collection.of statistical -and ■■ other data.- * Once, this.is achieved, itvis: a relatively,, simple matter-to- see what .must -■ .- be done to improve the mechanisms. The extent of which, these improvements.- can be incorporated in a development plan-depends on a number of .factors, . mainly political and financial. " une of the main values of planning.in a newly independent country is therefore that it gives the Government a bird's

eye view of the economic and social mechanisms and focusses attention .on

these parts which are not functioning properly. Just how this esaon-tial function should be carried out will depend upon the particular circumstances of each country. It will be of great assistance to evaluate the experience of other African countries at the forthcoming .Planning Conference.

20. To summarise .in. terms; of, tho.se.^aspects of planning.-.to -be .dismissed' .-, at the .19.67--pon/.e,.re1nce of; African. Planners. .; ■ - - ;,, .:- - *; ,"-.. \ •".*;•■■•

1. '■'^Prdject -Idehtification '■''■''i '■' ■'■" ' "-:?■' •■"'■■'■> '■ ' ■ '; •'•*-*■"-■■<:

(a) This has largely been achieved in the public sector, and in the case

... o: • '■■ ■■ - >•'- '■ ..'■".•■.v..'- . : ■ .■■■ ... .:>

of infrastructure projects (roads, railway, telecommunications,

elec:trici:ty, 'water' eiippIresV' s'ewerag6j: iridustrial" area) 'the' ground "" '

has b'eert" well-prepared-:fbr'--private-sector investment. " In the" case' "'■'' of edubatioh'-'&ridJ'agri'cUl'ture- the-1 broad'-aims- have' been identified,1' : ' ' but> it"still" remains ^to'i*elate':7individual projects 1. e. secondary' ''': ''"

.educati'on; "vocational ' trkihing, the' various' aspects'of agficultural ' '*

^improvement ets." to--the;ispecific'requirements" of' a comprehensive ' "

development plan. jI:h--the'case of Agriculture projects will* be largely

concerned with adjustments to the traditional social1structure'wh^ch

cannot .be-effectively.imposed,, and,which mus.t be..brought about; in the'..;

context, of, a .comprehensiye, approach- to community development, .v in .-.the ■■■ ■.

. widest, sense ,of, the-term. !: -.,.'#J- ■ ;-, ...:■... -^ ;:-.- : -,-■■.-■■■ / * -" :>.-■■:■

(b) '-The' development of'the-private sector is :to' be "achieved by creating; "

■an"'attractive^-enviromnent-'for'-'investmeht capital.''7 To :this;end "projeci;'1

i'dent'if ica'ti'on'assume3: a wider - meaning "thaiv'se:ems to be envisaged in '''

the" Conf erence'Agehda'J It'iricrudes-:those^aspects":6f 'policy suoii;a:s:' "1<*

E/C2J.14/CAP.2/lNF 15

Page 13

external economic relations and the improvement of the budgetary- position, which are fundamental to the success of any development planning.

2. Collection of "basic data for project identification

Much work has been done in certain fields, notably in the investigation of mineral and water resources. The need for more information to

facilitate..

(a) detailed planning of public sector projects in education and agriculture;

and

(b) the establishment of private sector projects

is recognized, and steps have been taken to build up the necessary s ta ti s ti cal pi c ture.

3» Plan Control and Implementation

As the success of any plan must depend upon broad economic, financial and

taxation policies, and the attraction of investment capital it will be necessary to devise a planning machinery which is not isolated from this

stream of policy making. There is more than one school of thought as to how this should be achieved. This is therefore a matter on which the experience of countries participating in the Conference will be carefully

examined.

4* Personnel, Training and research requirements

The shortage of statistical and planning staff is acknowledged, but in view of the fact that Swaziland is a very small country the training programmes already instituted should overcome this difficulty within the

foreseeable future. I