Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
ESEPARC ESWATINI ECONOMIC POLICY ANALYSIS AND RESEARCH CENTRE
2018/19
ANNUAL REPORT
1 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
2 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
3 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
4 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre CONTENTS
06 Board Members 27 Capacity Building
07 Chairman’s Remarks 28 Knowledge Dissemination
08 PAC Members 29 Graduate Development Programme
09 Executive Director’s Remarks 30 Corporate Social Responsibility
10 Management 31 Through the lens
11 ESEPARC at a Glance 32 Our Global Footprint
13 Governance 34 Social Media Presence
16 ESEPARC Staff 35 ESEPARC APP
18 ESEPARC Evidence Translation 36 Officers & Professional Advisors
20 Research and Policy Analysis 37 Directors Responsibilities & Approval
26 Policy Dialogue 38 Report of the Independent Auditors
39 Directors Report
40 Financial Statements
5 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
BOARD MEMBERS Mr.D.E. Masilela
Chairperson
Mr. P.E. Ginindza Mr. M.V. Sithole
Member Member
Prof. J.M. Thwala Mr. A.T. Dlamini
Member Member
Ms. T.R. Zwane Mr. M. Dlamini
Member Member
Ms. W. Dlamini Ms.H. Motsa
Member Member
6 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
CHAIRPERSON’S REMARKS Mr.D.E. Masilela
Chairperson
ESEPARC’s mandate and purpose is to provide universities across the world - in order to tap into policy research and analysis on social and economic the global brainpower for economic policy analysis issues in the Kingdom of Eswatini. To achieve this and research. mandate, the Centre conducts research, organises public seminars and conferences, publishes results I am very grateful to the Ministry of Finance for in mainstream media and academic journals, and granting ESEPARC the permission to acquire its conducts policy and data analysis workshops. own office building. This has created opportunities Guided by the strategic plan endorsed by the for the Centre to host a larger number of visiting Centre’s directors, ESEPARC delivers on its researchers, not only from Eswatini but also from mandate through both demand and supply other parts of the world. driven studies. Demand driven studies include consultancies and government commissioned On behalf of the ESEPARC Board, I would like research projects while the Centre’s researchers to invite you to read our annual report, which initiate supply driven studies after having scanned not only demonstrates the strides made in the last the economic environment. year but also gives an indication of the Centre’s potential contribution to evidence-based policy I am happy that the Centre has started preparations formulation in Eswatini. Once again, we reinforce for the 2019 Eswatini Economic Conference, our promise to build sustainable national capacity which will provide a platform for economists, that improves the quality and timeliness of public policy-makers, and the public to discuss economic policies in the Kingdom. opportunities around the knowledge economy in Eswatini. The success of the 2017 Eswatini Economic Conference fuels my confidence that the up-coming Conference will contribute significantly to economic policy formulation in the Kingdom of Eswatini.
ESEPARC continues to deliver on its mandate despite limited financial resources. The Centre has not yet attained the full structure of its organogram. However, I am pleased that the Centre is constantly devising strategies to defy the odds. One such strategy is linking up with experts from other research institutions - including
7 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
PAC MEMBERS Dr. Dumsile Dlamini
Member
Ms. Bonsile Ntando Mr. Linda Hlophe
Member Member
8 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
EXECUTIVE DIRECTOR’S REMARKS Dr.Thabo Sacolo
Acting Executive Director
The financial year 2018/19 has been a memorable ESEPARC continued with the initiative of generating one for ESEPARC. We moved into our new offices evidence to shape policy strategies aimed at and published six research papers in a peer-reviewed improving the delivery of education in the country. international journal, the African Review of In collaboration with the Self Help Action to Mitigate Economics and Finance. the Burden of HIV and Aids (SHAMBA) Trust, the Centre embarked on a Survey of Early Childhood Once again, in collaboration with the Central Bank Care and Development in Eswatini. The Centre also of Eswatini and the University of Eswatini, ESEPARC started working on another study aimed at evaluating began preparations for the 2019 Eswatini Economic the National School Feeding Programme in Eswatini. Conference (EEC). The theme for this Conference ESEPARC will continue to direct its efforts towards is ‘Knowledge, Innovation, and Development in fully understanding the education system in Eswatini Eswatini: Current and Future Prospects’. for an effective contribution towards improved policies in this sector. The purpose of the Conference is to provide a platform to discuss and begin to materialise the In line with our strategic plan, ESEPARC also knowledge economy Eswatini can become. Its aim is conducted studies at the regional level, one of which to bring together economic policy-makers, researchers, focused on understanding the energy demand in the development practitioners, captains of industry, Common Market for Eastern and Southern Africa development partners, and other Eswatini stakeholders (COMESA) region. The Centre also participated in to discuss the opportunities and challenges of numerous government processes, one of which was the knowledge, innovation, and development on the formulation of the National Development Plan. country’s economy. As envisaged in 2018, the Centre moved to a new Insights emanating from this interaction are expected office building in the outskirts of the city, Mbabane to contribute towards the country’s attainment of Township, during the second quarter of the 2018/19 Vision 2022, the Sustainable Development Goals financial year, and I would like to thank the directors (SDGs), and the African Union Agenda 2063. The for their unwavering support in this regard. key here is to leverage the country’s bold initiative of building a science and technology park. On behalf of the ESEPARC team, I would like to reassure all our stakeholders that the Centre shall Building human capital remains key in attaining without a doubt, remain committed to its mandate to the country’s developmental objectives. One of the generate empirical evidence aimed at shaping economic focus areas for the Centre is the education sector. policy in Eswatini. In the 2017/18 financial year through to 2018/19, ESEPARC focused on understanding higher education in Eswatini, particularly technical and vocational education and training (TVET). 9 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
MANAGEMENT
Dr.Thabo Sacolo
Acting Executive Director
Mangaliso Mohammed Teetee Zwane
Acting Senior Research Fellow Knowledge Mangaer
Qiniso Mthethwa
Finance & Admin Officer
10 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
ESEPARC AT A GLANCE
The Eswatini Economic Policy Analysis and Research Centre (ESEPARC) is a semi-autonomous think tank that specialises in economic policy research and analysis in Eswatini. The entity was established in 2008 through a joint funding arrangement between the Government of Eswatini and the African Capacity Building Foundation (ACBF). The overall goal of ESEPARC is to build sustainable national capacity that must improve the quality and timeliness of public policies in Eswatini, within the existing national policy and legislative framework.
The Centre’s staff compliment currently stands at 13, comprising the executive director, five researchers, a knowledge manager, and six administration staff. Since it began operations in 2012, ESEPARC has endeavoured to build the capacity for research and policy analysis within Eswatini through offering training opportunities for ESEPARC staff and officers from government ministries, parastatals, the private sector, and non-governmental organisations (NGOs) in order to ensure a performance driven workforce and leadership for the country’s future growth.
ESEPARC, in collaboration with the United Nations Development Programme (UNDP), offers a 12-month graduate research programme that gives graduates intensive on-the-job training to build their capacities in research skills, personal development, and leadership. The programme is designed for motivated, driven, and dedicated individuals with leadership potential for policy research. ESEPARC hopes that this training programme will provide interns with a solid foundation to pursue research careers and generate the necessary data and information for innovative policy solutions geared towards achieving national sustainable development.
11 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
12 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
ESEPARC PERFORMANCE 2018/19
GOVERNANCE
The Centre falls under the Ministry of Finance portfolio and a Board of Directors governs it. The Finance Minister is responsible for appointing a Board chairperson. A Finance and Administration Committee (FAC) supports the Board. The Board oversees the governance of ESEPARC and prepares its strategy, while the FAC advises and guides the Centre’s management on financial and administrative aspects.
The Board has nine members from different key stakeholder institutions: the Ministry of Finance; Ministry of Economic Planning and Development; Eswatini Revenue Authority; Central Bank of Eswatini; University of Eswatini; Ministry of Commerce, Trade and Industry (Trade Promotions Unit); Eswatini Industrial Development Corporation (EIDC); Public Policy Coordination Unit (PPCU); non-governmental organisations (NGOs); and ESEPARC executive director, who acts as the board secretary.
13 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
The Centre acquired new premises this financial year CORPORATE PROFILE and its offices are now located at Plot 874 Mbabane Township, Siphefu Street.
ESEPARC is a semi-autonomous entity established VISION in 2008 through a joint funding arrangement To be the think tank of think tanks. between the Government of Eswatini and the African Capacity Building Foundation (ACBF). The overall goal of ESEPARC is to build sustainable national capacity that must improve the quality and timeliness of public policies in Eswatini, within the MISSION STATEMENT At ESEPARC, we generate evidence and existing national policy and legislative framework. knowledge on economic policy effectiveness to enable informed decision making in the Kingdom of Eswatini.
CORPORATE VALUES Our values are as follows:
Credibility: We conduct reliable, accurate, and impartial research that will enhance economic welfare for Eswatini.
Accountability: We hold ourselves responsible for delivering research of the highest standard, and to give policy advice that will enable effective decision-making.
Innovation: We find new ways to make our work more efficient, impactful, and user friendly, so that we can expand our footprint as the first-choice research provider in economic policy.
Holistic Approach: We deal with research problems in such a way that our solutions eradicate the root cause of each problem.
Reciprocal Relationships: We choose our relationships in such a way that all parties benefit.
14 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
also reports to the executive director, provides support THE GOALS AND to the Research Department as well as the Finance and OBJECTIVES OF ESEPARC Administration Department.
The Finance and Administration Department - which provides support to the Research Department – has a ESEPARC has a critical role to play in the recovery and staff compliment of six. The finance and administration development of the economy, especially in generating officer (FAO), who reports to the executive director, the much-needed evidence for policy formulation and heads the department and is senior. decision-making.
The primary goal of ESEPARC is to improve economic governance in the Kingdom of Eswatini through generating evidence for use by government institutions responsible for various aspects of economic policy formulation and implementation, the private sector, civil society, and development partners to ensure functional public policy in Eswatini.
The Centre’s intent is to become a think tank that other think tanks will benchmark against and one that is a world leader in economic policy that leads to income generation and wealth creation.
To this end, the specific mandate of ESEPARC is to: • Conduct economic research and policy analysis; • Build capacity for economic research; and • Initiate public policy dialogue and dissemination.
HUMAN RESOURCES
ESEPARC has a team of dedicated professionals who conduct work under two divisions: • Research Department • Finance and Administration Department.
The Research Department - which comprises five researchers and a knowledge manager - performs the core duties of the Centre and has two sub- divisions: Macroeconomics and Microeconomics. The organisational structure of ESEPARC is such that associate researchers report to research fellows, who in turn report to the senior research fellow. The senior research fellow and the knowledge manager report to the executive director. The knowledge manager, who
15 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
RESEARCH
Dr Thabo Sacolo: Teetee Zwane: Acting Executive Knowledge Manager Director
Mangaliso Tengetile Hlophe: Mohammed: Research Fellow Acting Senior Research Fellow
Gugulethu Mgabhi: Thembumenzi Associate Researcher Dlamini: Associate Researcher
16 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
FINANCE AND ADMINISTRATION
Qiniso Mthethwa: Comet Nkwanyana: Finance & Admin Assistant Finance Officer Officer
Nomkhosi Dlamini: Thuli Masilela: Assistant Admin Officer Personal Assistant to Executive Director
Esau Kunene: Sibongile Sithebe: Driver Cleaner
17 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
formulation and decision-making. This is particularly ESEPARC EVIDENCE so because there is overwhelming evidence supporting TRANSLATION the fact that evidence-based policy making is vital to shape not only decisions on public spending within a context of resource constraints, but also to inform decision makers of key priority areas for growing their economies.
In this regard, all the efforts of ESEPARC aim at enhancing the implementation of the National Development Strategy (NDS) and the Poverty Reduction Strategy and Action Plan (PRSAP), as well as other national development policy frameworks and A focus on income generation plans in support of the development of the private and wealth creation sector and civil society organisations.
The economy of Eswatini has not realised its true potential in recent years due to several factors. These factors include high and increasing levels of unemployment; low levels of foreign direct investment; slow pace of economic and legislative reform; lack of efficiency in public expenditure; the preponderance of subsistence agriculture over commercial agriculture; persistence poverty and unequal income distribution; and limited economic diversification and excessive commodity and market concentrations.
Factors that induce slow economic development include weak economic policy management; increased dependence on the Southern African Customs Union (SACU) revenues with high volatility; low rates of employment creation; non-conducive investment climate; droughts and unfavourable weather; and more. Against this backdrop, the Centre has strengthened its research mandate to focus on evaluating current development programmes to grasp the link between government programming, income generation, and wealth creation within Eswatini.
By emphasising on income generation and wealth creation, ESEPARC believes it will be better positioned to use its work to bring about a mind-set change throughout the government system and amongst stakeholders such that focus will shift from poverty eradication to income generation and wealth creation in Eswatini. The Centre has a critical role in the recovery and development of the economy, especially in generating the much-needed evidence for policy
18 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
Opinion Editorials
Conducting economic policy research is a long process. To disseminate the ideas generated by researchers at the Centre to the public and stakeholders, ESEPARC produces opinion editorials that are published in the local press, the Centre’s website and App (SEPARC Insights).
Over the period under review, five (5) opinion editorials were published in the Nation Magazine and the Sunday Observer:
1 Magongo, T., Mohammed, M. and Dlamini, T. S. (2018) ‘VAT on electricity might not be such a very good idea for ailing economy’, Nation Magazine, April 2018
2 Mohammed, M. (2018) ‘If it’s made Eswatini, it would be a vote with your Lilangeni’, Nation Magazine, May 2018
3 Hlophe, T. and Dlamini, T. S. (2018) ‘Tapping into the foretold future of artificial intelligence for development in Eswatini’, Sunday Observer, 10 June 2018
4 Mhlanga, Z. (2018) ‘Making irrigation schemes sustainable for agriculture and food security Eswatini’, Nation Magazine, November 2018
5 Hlophe, T. and Dlamini, T. S. (2019) ‘The prospects of indigenous knowledge systems (IKS) in Eswatini’, Sunday Observer, 03 February 2019
19 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
RESEARCH AND identifies the areas in which teenage pregnancies are most prevalent, teenage mothers who are POLICY ANALYSIS more vulnerable to have more babies, the factors associated with the number of previous pregnancies that teenagers have, and uses cultural stories to identify the unique key socio-economic factors in the areas experiencing high teenage pregnancy rates in Eswatini. Information from such an analysis is crucial in the development of policies and programmes that will help to address the issue as the study maps out the exact areas where teenage pregnancy is a problem and attach monetary losses OPERATIONAL REVIEW on the economy.
• Inequality of Opportunities in Education in Eswatini
This section presents the research activities undertaken The study traces the causes and effects of inequality by the Centre during the reporting period. At the close of opportunities in education in Eswatini over a of the financial year, various projects were at different 50-year period. This study identifies some of the stages of completion, while some were still ongoing. major causes of inequality and seeks to identify potential sources of inequality at all levels of the general education system in Eswatini and how Demand Driven Research these interplay with learner achievement. The study also analyses and discusses the outcomes of Completed Studies the observed education and health inequalities, particularly in relation to education.
• Assessing the Economic Impact of the Eswatini Small Scale Enterprise Loan Guarantee Scheme (SSELGS)
The purpose of this study is to evaluate/analyse the impacts of the Small Scale Enterprise Loan Guarantee Scheme (SSELGS) to SMEs, the economy and the banking sector in Eswatini since its initiation 26 years ago. The scheme was initiated to bridge the gap of access to financial services of SMEs from the financial institutions in the country. It is therefore fundamental to evaluate • The Implications of Teenage Pregnancies or analyse the extent to which the scheme has had in Eswatini: A Trend and Spatial an impact in bridging the gap. The study also seeks to find out if the scheme plays a role in promoting Analysis the development of SMEs and whether there are any programmes for support to SMEs, particularly The study investigates the major causes of teenage in terms of access to financial services, at the macro pregnancies in Eswatini and to understand level. the economic costs on the national purse. It
20 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
• The Impact of the Demographic industrialisation and economic growth. Transition on Energy Demand in COMESA: A Pooled Mean Group • Determinants of Households’ Primary Estimation Choice of Cooking Energy in Eswatini
This study examines the impact of an increase in Access to energy is crucial for any country’s the working age population on energy demand in economic development. It is an important input the COMESA region. It also highlights empirical in the welfare of the consumers in any economy: evidence, which reveals that Africa is experiencing from its role in providing extra hours for working a demographic transition. An interrogation of the and studying to reducing adverse health impacts by current method used by COMESA member states reverting from using wood fuel for cooking to using to estimate energy demand reveals that the current cleaner and health-friendlier stoves for cooking. estimation procedure does not take into account This study attempts to identify the various factors the demographic structure of the population. that are associated with Eswatini households’ cooking fuel choices. It will examine the various Ongoing Studies forms of cooking energy available and used by households in Eswatini, determine the primary choice of cooking energy among households, and examine the factors that influence the choice of cooking energy among the households. The results will provide policymakers with information on the factors that can be altered in order to nudge households to use cleaner sources of energy.
• Factors Contributing to Success or Failure of Native versus Foreign Owned Retail SMEs in Eswatini
The study aims to assess the business operations, • Implications of Migration to Cost- entrepreneurial behaviour, and determinants of success or failure among native versus non- reflective Tariffs in Eswatini’s Electricity native SMEs at firm-level. Descriptive method is Sector used to explain and examine the operations and performance of SMEs run by natives and non- Eswatini has witnessed significant reforms and natives, as well as the entrepreneurial behaviours of restructuring within the electricity sector. One the business owners. The findings of the study will of the key changes that need to take place in provide specific local information on firm-level the country is to restructure electricity tariffs to factors that enable or inhibit SME performance reflect true long-run marginal costs of electricity within the different sectors of the economy. Such supply and the Government of Eswatini has since information will assist policymakers to design approved migration to cost-reflective tariffs. To strategies to improve native owned retail SMEs as understand the potential electricity consumption well as finding ways to create a conducive business responses to future price changes, the study will environment for SMEs. ascertain whether the consumption behaviour that could be induced by cost-reflective tariffs will be consistent or incongruent to the overall goals of the National Energy Policy on affordability and positioning the electricity sector as a stimulant for
21 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
• Trends of Women’s Participation in the country. Given the growth in the popularisation Sectors of the Economy of Eswatini: of innovation in national development, the study Status and Disparity conducts a historical analysis of the innovations that have been part of Eswatini’s development. It examines how societies have evolved over The aim of this study is to examine the the years and the stock of knowledge that has participation rate of women within the sectors of informed innovative activities in the country. The the economy. There is need to design strategies study tries to document a national perspective that will bridge the gender gaps and highlight the of innovation and understand the potential of gender responsive interventions to enhance the innovation-driven economic development. likelihood of success of the Poverty Reduction Strategy Action Plan (PRSAP). Decreasing inequality and allowing everyone to be part of the • Harnessing the Demographic Dividend productive system could improve the country’s to Fast-Track Industrialisation in development outcomes and make the economy Eswatini: A Case in the ICT Sector grow faster in a smarter way. Therefore, the study will assist policymakers to identify the sectors that Eswatini ranks very low in the Global need improvement in terms of gender equality, Competitiveness Index (GCI). Conceivably, this which might be inhibiting economic growth. draws from the fact that Eswatini is a consumer of goods and services produced from outside • Opportunities for Growth in the economy. Consequently, this has robbed the the Eswatini Economy: A Social country of the opportunity to exercise an industrial Accounting Matrix Approach policy regime that puts small-medium enterprises at the centre of industrial development. This A social accounting matrix (SAM) provides a first- study analyses panel data of five African countries hand view of the size and structure of an economy. to illustrate that manufacturing in the ICT sector This study presents a SAM of the Eswatini could contribute to increased economic growth, economy to characterise the sectors of production particularly if targeted towards technologies that and their relative importance to income and are in high demand among the youth, such as wealth creation. The paper investigates the key smartphones, laptops, and other similar gadgets. features of the Eswatini economy and identifies The paper will come up with some considerations the most important sectors of the economy in for industrial policy in Eswatini. terms of production, value addition, capital formation, employment creation, and overall • The Role of Industry in Skills impact on household income. The study also Development for Industrialisation in calculates the positioning of each sector in terms Eswatini of the inputs it demands from other sectors for the creation of gross domestic product (GDP). In a rapidly automated and technological world, With information on all the economic activities skills and knowledge intensity are fundamental accentuated and prominently distinguished, drivers of industrialisation. This study examines this paper will provide knowledge on Eswatini’s the current role played by industry in technical income and commodity flows and rank the key and vocational education and training (TVET). priority sectors for investment opportunities for It correlates factors contributing to the skills gap the Eswatini economy. between industry needs versus skills supplied by TVET institutions. The paper will contribute • Innovation in Eswatini: Past, Present, knowledge on the role of industry in closing the and Future Prospects skills gap for the country’s current and future industries. It will identify the various institutional This study looks at the history of innovation in the mechanisms created by industry that could play
22 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
a critical role in upgrading technical skills in the the fact that Eswatini, similar to and other African country and transforming education and training countries, needs to regularly assess progress made into a process of continuous learning and lifelong towards achieving its developmental objectives job competencies. and provide such information to stakeholders, including but not limited to policymakers, • The Economic Benefits of Technical academia, and the private sector (particularly investors in the agricultural sector). This Vocational Education and Training in information will be useful for planners and the Kingdom of Eswatini policymakers when prioritising investments within the agriculture sector of Eswatini.
• Stokvels: An Instrument for Income Generation and Wealth Creation?
This study seeks to evaluate the economic value of stokvels in Eswatini. The snowball sampling technique will be used to identify the stokvels and a regression model used to analyse their impact. The study is in line with the National Financial Inclusion Strategy which aims to reduce financial exclusion in rural areas from 27% to 15% by 2022. In determining the contribution of stokvel funds to income generation, wealth creation, This study covers public technical and vocational and the features that make them successful, the education and training (TVET) institutions, study will add to knowledge on informal savings tracing the graduates with a view to assess the facilities to inform the review of rural financial economic return to the government of Eswatini’s development policies. investment into the institutions. The purpose of the study is to investigate the economic benefits • Community-based Ecotourism: A of TVET in Eswatini using the cost of training Possible Pathway to Sustainable from 12 TVET institutions and the TVET Natural Resource Management in graduates’ income covering a period of 17 years (2000 to 2017). The study hopes to close the gap Eswatini of unavailability of literature on the economic benefits of TVET in Eswatini, Southern Africa, Tourism has been recognised as a priority sector and Africa as a whole. with the potential of catalysing economic growth in Eswatini. Community-based eco-tourism is being used as an engine for income generation and • Identifying Growth Opportunities wealth creation for rural households in Eswatini. within the Agriculture Sector of This study aims to quantify the economic benefits Eswatini that accrue to the host communities, assess the perceptions of community members towards eco- The study seeks to conduct the first agricultural tourism and whether their expectations from such sector review for Eswatini. The study aims to projects are met. The results will highlight the assess the performance of the agriculture sector strengths and weaknesses of selected community- in terms of investment (budget allocation to and based eco-tourism projects around the country within the agriculture sector), output growth, and and thus provide policymakers with information changes in commodities (produced, exported, on the factors that need to be altered in order to and imported). The need for review arises from improve the overall functioning and likelihood for success of these projects. 23 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
• Assessing the Economic Impact of Brain Drain in Eswatini
Eswatini has a rich history of international migration and in spite of limited literature, emigration has played a significant role in the Supply-driven Research economy of the country. The purpose of this study is to assess and quantify the impact of brain
drain on the economy of Eswatini. The goal is to understand the economic impact of the increasing emigration of educated and skilled citizens of the country, and the impact this has on GDP and the Completed Studies strengthening of human capital development.
• The Impact of Unemployment on the Youth: A Case of Mental Illness in Eswatini
This study examines the relationship between youth unemployment and mental health, in order to understand the link between increasing mental illness cases and rising youth unemployment in Eswatini. This understanding will allow for effective strategies that will break the cycle of poverty, unemployment, and mental illness which lead to long-term economic unproductivity. This study will assist policymakers to address the socioeconomic determinants of unemployment in different communities, understand the • The Economic Impacts of the Lower barriers that young people are facing, and how Usuthu Irrigation Project the unemployed youth can be channelled to productive economic activities. This is an impact study that was commissioned by the Eswatini Water and Agricultural Development Enterprise (ESWADE). It assesses the economic and social benefits derived from investment in dams in Eswatini. The focus is on the first phase of the Lower Usuthu Irrigation Project (LUSIP) administered by ESWADE. The study seeks to provide evidence on the impact of LUSIP on agricultural production and by default on households that would lead to the generation of useful information for the continued sustainability of the project into the future. It also provides evidence on the contribution of the project in empowering rural households and social development in the area, which will provide indispensable information for continued government programming. 24 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
in access to ECCE centres providing pre-primary education, and to assess the gap between current provision, access, and the international and national targets of full access to quality ECCE, especially by the most vulnerable children.
• Evaluation of the Eswatini National School Feeding Programme
The Ministry of Education and World Food Programme (WFP) Eswatini has commissioned ESEPARC to evaluate the National School Feeding Programme (NSFP) in Eswatini. The study is to assess the effectiveness of the school feeding programme in achieving stated goals, • The Potential Economy Wide Impacts and generate evidence on its contributions to of Introducing VAT on Electricity in education outcomes and other developmental Eswatini objectives, including use of schools as centres of care and support. It will also document the The Eswatini Energy Regulatory Authority cost of implementing the programme as well (ESERA) commissioned ESEPARC to undertake as identify and recommend design adjustments a study to determine the potential economic and government needs to make in order to achieve its social impact of introducing VAT on electricity policy objectives. on households, industry, and the country’s economy at large. The study sought to determine • The Impact of Procurement on the short and long-term effect on national tax Sustainable Economic Development in revenues of each position; the price elasticity of demand of electricity on the business and/or Eswatini for Attainment of Vision 2022 industrial customer; assess the potential impact of the proposed amendment on other economic The Eswatini Public Procurement Regulatory indicators such as inflation and economic growth; Agency (ESPPRA) has engaged ESEPARC to and to recommend the best policy decisions to conduct a study on the impact of procurement inform government on the issue. on sustainable economic development in the country. The study is expected to demonstrate how Eswatini’s state owned enterprises Ongoing Studies (parastatals), the local and central government can use ESPPRA as an instrument in developing and strengthening the local economy. The study • Survey of Early Childhood Care and seeks to identify the core principles of public Education in Eswatini procurement that can be used as an accelerator for economic growth and recovery, and further ESEPARC has been commissioned by the Self recommend how these principles should be Help Action to Mitigate the Burden of AIDS applied to drive local procurement to achieve (SHAMBA) Trust to conduct a survey that will domestic economic development. provide baseline information on the status quo of Early Childhood Care and Education (ECCE) provision in Eswatini, as well as comprehensive policy and programme analysis on ECCE. The survey seeks to assess progress made since 2008
25 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
POLICY DIALOGUE
ESEPARC hosted the following policy dialogues guest presenter was Dr Paul Alagidede, a Professor of during the financial year under review: Finance at Wits Business School.
(i) Culture Public Lecture iv) Think Tanks Day
ESEPARC hosted a public lecture on July 26, themed The Centre, in coordination with the Lauder ‘Knocking on Moral Values to Integrate Indigenous Institute of the University of Pennsylvania’s Think Knowledge with Development’ to spur on a Tanks and Civil Societies Programme, on January 31 conversation on some pertinent cultural issues that hosted a breakfast meeting themed ‘Why Facts and impact the lives of emaSwati. The guest presenter was Think Tanks Matter’. The guest speaker was Minister Ms Joy Ndwandwe, a Heritage and Development of Economic Planning and Development Dr Tambo Consultant. Gina (represented by Minister of Tourism and Environmental Affairs Hon. Moses Vilakati). Other (ii) Trade fair seminar keynote speakers were Business Eswatini President Mr Andrew Le Roux and Editors Forum Secretary The Centre hosted a seminar during the Eswatini General Mr Jabu Matsebula. International Trade Fair 2018 under the theme; ‘Rekindling Made in Eswatini for the Next 50 Years The Centre’s capacity building activities focus mainly of Trade… A Conversation’, to kick-start dialogue on on workshops, seminars, and short courses. ESEPARC how the country can achieve its developmental goals. also offers training opportunities to undergraduate and graduate students to build capacity for research The seminar was held on September 03. and policy analysis within Eswatini. During the year under review, the Centre hosted a number of iii) SME Public Lecture workshops to capacitate officers in the public and private sectors. On January 17 (2019), ESEPARC partnered with the Ministry of Commerce, Industry and Trade’s SME Unit to host a public lecture themed ‘SMEs and Industrialisation: Materialising SDGs 8 & 9 in Eswatini’, with support from UNDP Eswatini. The
26 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
and the private sector participated and subsequently CAPACITYBUILDING came up with a list of research priorities that may form the basis for ESEPARC studies in the 2019/20 financial year. i) Interdisciplinary Science Workshop
On May 22 – 23, ESEPARC and the Royal Science and Technology Park (RSTP), in collaboration with the University of Arkansas (USA), hosted a two-day workshop on Interdisciplinary Science, Economic Development, and Sustainability in Eswatini. In total, there were 27 participants from the Ministry of Agriculture, Ministry of Economic Planning and Development, Ministry of Natural Resources and Energy, the University of Eswatini, RSTP, MTN Eswatini, Eswatini Christian University, Central Statistical Office, Southern African Nazarene University, Eswatini Post and Telecommunications Corporation, and ESEPARC. ii) Cost-Benefit Analysis Workshop
ESEPARC engaged Conningarth Economists from South Africa to train government economists and planners, as well as the Centre’s graduate researchers on the Theory and Application of Cost-Benefit Analysis. In total, 23 participants received training on September 17 - 20. These were government officers from the Ministries of Economic Planning and Development; Finance; Public Works and Transport; Information, Communication and Technology; Agriculture; Education; and Deputy Prime Minister’s Office. Other participants were from the Eswatini Energy Regulatory Authority (ESERA), Central Bank of Eswatini, and ESEPARC. iii) Consultative Research Agenda Setting Workshop
ESEPARC hosted a consultative agenda setting workshop on economic policy research in Eswatini. The workshop held on February 12, 2019 was to solicit information to inform future economic policy research and to determine where gaps exist in economic policy research in the country. A total of 28 representatives from the public sector, parastatals,
27 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
KNOWLEDGE iii) Fifth COMESA Annual Research DISSEMINATION Forum
A research paper produced by ESEPARC was one of 11 papers chosen for presentation and discussion at the Fifth COMESA Annual Research Forum held in Nairobi, Kenya on August 06 - 10. The paper titled ‘The Impact of the Demographic Transition on Energy Demand in COMESA: A Pooled Mean Group Estimation’ was co-authored by Associate Researcher Tanele Magongo and Senior Research Fellow Dr Thabo Sacolo (who presented it at the Forum).
iv) Dissemination of SADC Instruments on STI
ESEPARC Executive Director Dr Thula Sizwe Dlamini made a presentation on ‘The Role of STI in Eswatini’s Development’ at a seminar on the ‘Dissemination of SADC Instruments on Science, Technology, and Innovation (STI) held at the Royal Swazi Spa on August 22 - 23.
i) Nedbank Breakfast Meeting v) Nedbank Eswatini Strategy Review
The Centre was invited by Nedbank Eswatini to Research Economist Mangaliso Mohammed was deliver a presentation on ‘Opportunities and Value invited by Nedbank Eswatini to deliver a presentation in the Current Economic Climate’ during the bank’s on the ‘Current Economic Climate in Eswatini’ breakfast meeting on May 25, themed ‘Creating Value during the financial institution’s Strategy Review in a Constrained Economy’. Research Economist held on September 04. Mangaliso Mohammed delivered the presentation. vi) 56th AEASA Annual Conference ii) Science, Technology, and Innovation Symposium Associate Researcher Thembumenzi Dlamini presented a research paper on the ‘Determinants Associate Researcher Tengetile Hlophe represented of Choice of Credit Sources by Eswatini SMEs: ESEPARC at a Science, Technology, and Innovation A Focus on the Agriculture Sector’ at the 56th Symposium and Exhibition hosted by the Royal Agricultural Economic Association of South Africa Science and Technology Park (RSTP) and the (AEASA) Annual Conference. The conference Eswatini Environmental Authority on June 28 – 29, was on September 25 – 27 under the theme, where she delivered a presentation on the ‘National ‘Practicing Agricultural Economics in an Uncertain System of Innovation in Eswatini’. Neighbourhood’, at the Lord Charles Hotel in the Western Cape, South Africa.
28 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre vii) Eswatini Science Week Studies produced under the programme in the The Executive Director was invited to deliver a 2018/19 financial year are: presentation under the sub-theme; ‘Spotlight on Eswatini Scientific Discoveries: 50/50 Celebration’ • The Implications of Teenage Pregnancies in during the Eswatini Science Week hosted by the Eswatini: A Trend and Spatial Analysis by Ministry of Information, Communication and Nompulelo Dlamini Technology in collaboration with the University of • Inequality of Opportunities in Education in Eswatini on September 24 – 28 at Sibane Hotel. Eswatini by Nhlanhla Zulu • Assessing the Economic Impact of the Eswatini Small Scale Enterprise Loan Guarantee Scheme (SSELGS) by Maqhawe Zwane PROFESSIONAL DEVELOPMENT ii) UNESWA research interns PROGRAMME The Centre signed a Memorandum of Agreement with the University of Eswatini (UNESWA)’s Department of Agricultural Economics and Management to strengthen and broaden cooperation between the institutions. Among other activities, the institutions seek to work collaboratively to identify workable policy initiatives for the development of UNESWA and Eswatini, and maximise ESEPARC’s access to UNESWA technical expertise and assistance through cooperation in the development and pilot testing of agricultural innovations and policy options.
In January 2018, two students joined the Centre on internship for six months.
iii) University of Arkansas graduate i) ESEPARC/UNDP Graduate interns Programme The Centre collaborates with the University of ESEPARC has a Memorandum of Understanding Arkansas to take advantage of opportunities availed (MoU) with the United Nations Development by the American institution’s graduate internship Programme (UNDP) Eswatini for funding support programme for developing countries. The University’s that enables the Centre to run a graduate research colleges - the Dale Bumpers College of Agricultural, programme that offers qualified and eligible Food and Life Sciences; and the Sam M. Walton candidates the unique opportunity to acquire College of Business – committed to bring graduate practical experience in policy analysis and research interns to companies and organisations in Eswatini, work under the direct supervision of experienced to assist in ongoing projects that could utilise and ESEPARC researchers. benefit from their expertise. The graduate students come from the university’s pool of international The second cohort of three graduate researchers research programmes and made available for one to successfully completed their 12-month programme two months, depending on their levels of study and on November 30, 2018. Four new graduate research focus of their theses/areas of research. interns then joined the Centre and began their internship in January 2019.
29 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
During the reporting financial year, the Centre hosted Erin Farmer and Lancaster Richmond for six weeks from June to July.
CORPORATE SOCIAL RESPONSIBILITY
i) Job Shadow
As part of the Centre’s corporate social responsibility, ESEPARC hosts learners under the Junior Achievement (JA) Eswatini job shadow programme. In August 2018, the Centre hosted three learners from Ka-Boyce High School, Ngomane High School, and Mhlume High School.
ii) Schools Outreach Programme
During the reporting financial year, ESEPARC initiated a Schools Outreach Programme which sees the Centre’s staff visiting high school pupils to impart knowledge on available opportunities for undergraduate study within the country, regionally, and globally. A team from the Centre visited Mhubhe High School on April 06, Mlindazwe Secondary School on June 06, Sigangeni High School on June 13, Mbekelweni High School on July 11, Londunduma High School on February 13, 2019 and Bhunya High School on March 20, 2019.
30 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
THROUGH THE LENS
Representatives of ESEPARC and UNISA during the signing ceremony of an MoU between the two institutions. The event was held at UNISA in Pretoria.
Dr Thabo Sacolo (l) with ESEPARC staff giving out water and fruits to runners at the FSRA Marathon, Participants in discussions Mangaliso Mohammed and where the Centre had sponsored a water point. during ESEPARC’s Research Dr Thula Dlamini making a Agenda Setting Workshop at presentation at ESWADE. Sibane Hotel.
Central Bank of Eswatini Governor Mr Majozi Sithole (c) officially launch- We made it to the top!!!... ing the Eswatini Economic Conference (EEC) 2019. Also present were ESEPARC staff at the summit representatives from ESEPARC and UNESWA. of Sibebe Rock.
Acting Executive Director Indigenous Knowledge Expert, People and faces captured at the ESEPARC exhibition stand during the Dr Thabo Sacolo welcoming Joy Ndwandwe making a Eswatini International Trade Fair 2018 participants at the Research submission at the SME Public Agenda Setting Workshop Lecture held at Happy Valley hosted at Sibane Hotel. Hotel.
31 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
OUR GLOBAL FOOTPRINT
As per ESEPARC’s strategic objective to increase the impact of our research outputs, the Centre piloted new ways of reaching wider audiences across the world by utilising the power of digital media platforms, particularly social media. In the 2018/19 financial year, the Centre (1.46%) CANADA revamped its website and mobile phone app (SEPARC Insights), created social media pages on LinkedIn, Facebook, Twitter, Instagram, and (12.59%) UNITED STATES a YouTube channel. User traffic on the website and app increased exponentially by over 200%, while the social media platforms have played a major role in increasing the Centre’s global visibility and reach.
Website Traffic
Where our top 10 website visitors are based
UNITED STATES SOUTH AFRICA CANADA INDIA UNITED KINGDOM
Based on statistics from Google Analytics.
32 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
UNITED KINGDOM (1.14%)
(1.05%) CHINA INDIA (1.46%) (0.95%) TAIWAN
PHILIPPINES (0.81%) (0.90%) KENYA
(11.86%) SOUTH AFRICA ESWATINI (55.15%)
UNITED KINGDOM CHINA TAIWAN KENYA PHILIPPINES
33 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
Social Media Presence LinkedIn top 10 locations SOUTH AFRICA of post viewers globally 87%
UNITED STATES NETHERLANDS 8% 0.05%
UNITED KINGDOM OMAN 3% 0.05%
CANADA 0.1%
TAIWAN INDIA 1.2% 0.1%
MALAYSIA NEW ZEALAND 0.2% 0.3%
Also Follow us on these social media plartfoms...
34 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
35 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
OFFICERS & PROFESSIONAL ADVISORS
for the year ended 31 March 2019
Country of incorporation Eswatini and domicile Swaziland Economic Policy Analysis and Research Centre is a semi-autonomous economic and policy analysis and research centre established to conduct Nature of business and research in areas of economic policy formulation and principal activities management. It provides training to Government officials and policy advice to government and promote policy dialogue within Swaziland through dissemina- tion workshops, conferences and publications.
Chairperson: Mr. Dumisani Masilela Members: Mr. Phiwayinkosi Ginindza (Re-appointed on 02 May 2018) Ms. Thembi R Zwane (Re-appointed on 02 May 2018) Prof. Cisco M Magagula (Re-appointed on 02 May 2018) Mr. Majozi Sithole (Re-appointed on 02 May Directors 2018) Mr. Abner Dlamini Ms. Hlobsile Motsa (Appointed on 2 May 2018) Mr. Mluleki Dlamini (Appointed on 2 May 2018) Ms. Winile Dlamini (Appointed on 2 May 2018) Executive Director: Dr. Thula Sizwe Dlamini (Resigned 31 March 2019)
Business address Plot 874 Mbabane Township, Siphefu Street Mbabane, Swaziland
Postal address P. O. Box 8804, Mbabane, H100, Eswatini
Bankers Standard Bank Swaziland Limited Central Bank of Swaziland
Auditors Kobla Quashie and Associates Chartered Accountants (Swaziland) Manzini
36 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
DIRECTORS’ RESPONSIBILITIES AND APPROVAL
for the year ended 31 March 2019
The directors are required in terms of the endeavours to minimise it by ensuring that Companies Act of 2009 to maintain adequate appropriate infrastructure, controls, systems and accounting records and are responsible for the ethical behaviour are applied and managed within content and integrity of the annual financial predetermined procedures and constraints. statements and related financial information included in this report. It is their responsibility to The directors are of the opinion, based on ensure that the annual financial statements fairly the information and explanations given by present the state of affairs of the centre as at the end management, that the system of internal control of the financial year and the results of its operations provides reasonable assurance that the financial and cash flows for the period then ended, in records may be relied on for the preparation of conformity with International Financial Reporting the annual financial statements. However, any Standards. The external auditors are engaged to system of internal financial control can provide express an independent opinion on the annual only reasonable, and not absolute, assurance against financial statements. material misstatement or loss.
The annual financial statements are prepared in The directors have reviewed the centre’s cash flow accordance with International Financial Reporting forecast for the year to 31 March 2020 and, in Standards and are based upon appropriate the light of this review and the current financial accounting policies consistently applied and position, they are satisfied that the centre has or supported by reasonable and prudent judgments has access to adequate resources to continue in and estimates. operational existence for the foreseeable future.
The directors acknowledge that they are ultimately The external auditors are responsible for responsible for the system of internal financial independently reviewing and reporting on the control established by the centre and place centre’s annual financial statements. The annual considerable importance on maintaining a strong financial statements have been examined by control environment. To enable the directors to the centre’s external auditors and their report is meet these responsibilities, the board of directors presented on pages 4 to 5. sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate Chairperson: Mr. D. E. Masilela segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the centre and all employees are required to maintain the highest ethical standards in ensuring Director the centre’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the centre is on identifying, assessing, managing and monitoring all known forms of risk across the centre. While operating risk cannot be fully eliminated, the centre
37 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
REPORT OF THE INDEPENDENT AUDITORS
for the year ended 31 March 2019
To the Board of Directors of Eswatini Economic for the purpose of expressing an opinion on the effectiveness Policy Analysis and Research Centre of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used We have audited the accompanying annual financial and the reasonableness of accounting estimates made by the statements of Eswatini Economic Policy Analysis and directors, as well as evaluating the overall presentation of the Research Centre, which comprise the directors’ report, annual financial statements. the statement of financial position as at 31 March 2019, the statement of comprehensive income, the statement of We believe that the audit evidence we have obtained is changes in equity and statement of cash flows for the year sufficient and appropriate to provide a basis for our audit then ended, a summary of significant accounting policies opinion. and other explanatory notes, as set out on pages 8 to 21. Scope limitation/ Disagreement/ Inadequate Directors’ Responsibility for the Financial disclosure/ Basis for Qualified Opinion Statements In our opinion, the annual financial statements present The company’s directors are responsible for the preparation fairly, in all material respects, the financial position of the and fair presentation of these annual financial statements centre as of 31 in accordance with International Financial Reporting March 2019, and of its financial performance and its Standards, and in the manner required by the Companies cash flows for the year then ended in accordance with Act of 2009. This responsibility includes: designing, International implementing and maintaining internal control relevant Financial Reporting Standards, and in the manner required to the preparation and fair presentation of annual financial by the Companies Act of 2009. statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate Emphasis of Matter accounting policies; and making accounting estimates that are reasonable in the circumstances. Without qualifying our opinion, we draw attention to a significant and unusual related party transaction disclosed Auditors’ Responsibility in Note to the annual financial statements, which includes an appropriate description of the company’s sale of the office equipment division to a member of the company’s Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted management team for L -. our audit in accordance with International Standards on Auditing. Those standards require that we comply with Accounting and Secretarial Duties ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial Without qualifying our opinion, we draw your attention statements are free from material misstatement. to the fact that with the written consent of all board of directors, we have performed certain accounting and An audit involves performing procedures to obtain audit secretarial duties. evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditors’ considers internal control Kobla Quashie and Associates 09 July 2019 relevant to the entity’s preparation and fair presentation Chartered Accountants of the annual financial statements in order to design audit (Swaziland) Manzini procedures that are appropriate in the circumstances, but not Registered Auditor: Daniel Bediako 38 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
DIRECTORS’ REPORT
for the year ended 31 March 2019
The directors submit their report for the year ended 31 finance future operations and that the realisation of assets March 2019. and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. 1. Review of activities The ability of the centre to continue as a going concern is Main business and operations dependent on a number of factors. The most significant of these are; the Swaziland Governance continuance to provide Background subvention to the centre and that the directors continue to The centre was incorporated on the 30th of April 2008. procure funding for the ongoing operations for the centre . Eswatini Economic Policy Analysis Research Centre (ESEPARC) is a semi-autonomous economic policy 3. Events after the reporting period analysis and research centre established to conduct research in areas of economic policy formulation and management. The directors are not aware of any matter or circumstance It provides training to Government officials and policy arising since the end of the financial year. advice to government and promote policy dialogue within Eswatini through dissemination workshops, conferences 4. Directors and publications. Chairperson: Mr. D. E. Re-appointed on 02 May 2018 Funding of ESERPAC Masilela Member: Mr. P. E. Re-appointed on 02 May 2018 The centre is funded by the Government of Eswatini. Ginindza ESEPARC receives an annual subvention from the Government of Eswatini. ESEPARC has signed an Member: Ms. T. R. Re-appointed on 02 May 2018 agreement with UNDP to collaborate on areas of mutual Zwane interest specific to high level research and policy services, Member: Prof. C. M. Re-appointed on 02 May 2018 and in line with the UNDP Country Programme Document Magagula 2016-2020 and as implied under the Facility for Upstream Member: Mr. Majozi V. Re-appointed on 02 May 2018 Engagement Project for implementation from 2016 to 2020. Sithole UNDP will support ESEPARC wit financial and technical Member: Mr. A. resources in line with mutually agreed national development Dlamini objectives Annual Work Plans signed between the parties. Executive Director: Resigned This agreement will also enable key capacity development Dr. Thula Sizwe initiatives in the country to build the necessary capacities Dlamini for research and building the technical expertise in the country in line with the Facility for Upstream Engagement Member: Ms. Hlobsile Appointed Project Document, and through the ESEPARC Internship Motsa Programme. Member: Mr. Mluleki Appointed Dlamini The operating results and state of affairs of the centre are Member: Ms. Winile Appointed fully set out in the attached annual financial statements and Dlamini do not in our opinion require any further comment. 5. Auditors 2. Going concern The auditors are Kobla Quashie & Associates. The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to
39 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
STATEMENT OF FINANCIAL POSITION
for the year ended 31 March 2019
Figures in Lilangeni Note(s) 2019 2018 Assets Non-Current Assets
Property, plant and equipment
2 5,047,889 4,542,098
Current Assets
Trade and other receivables 3 152,742 151,216 Cash and cash equivalents 4 1,520,299 4,071,022 1,673,041 4,222,238 Total Assets 6,720,930 8,764,336
Reserves and Liabilities Reserves
Share capital
5 2 2 Revaluation Reserves 6 824,295 824,295 824,297 824,297
Liabilities Non-Current Liabilities
Borrowings
7 1,097,334 1,373,231
Current Liabilities
Borrowings 7 277,402 226,769 Trade and other payables 8 290,906 310,350 Deferred income 9 4,042,729 5,814,409 Provisions 10 188,262 215,280 4,799,299 6,566,808 Total Liabilities 5,896,633 7,940,039 Total Equity and Liabilities 6,720,930 8,764,336
40 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2019
Figures in Lilangeni Note(s) 2019 2018
Grant Income 8,124,198 8,175,495 Other income 125,973 334,516 Operating expenses (8,250,171) (8,510,011) - -
41 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
STATEMENT OF CHANGES IN FUNDS
for the year ended 31 March 2019
Figures in Lilangeni Share Capital R Valuation Total equity reserves
Balance at 01 April 2017 2 2
Changes in equity
Total comprehensive income for the year 824,295 824,295 Total changes 824,295 824,295
Balance at 01 April 2018 2 824,295 824,297
Balance at 31 March 2019 2 824,295 824,297
42 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
STATEMENT OF CASH FLOWS
for the year ended 31 March 2019
Figures in Lilangeni Note(s) 2019 2018
Cash flows from operating activities
Cash used in operations 13 (1,647,275) (1,043,236)
Cash flows from investing activities
Purchase of property, plant and equipment 2 (678,184) (2,914,153)
Cash flows from financing activities
Movement in borrowings (225,264) 1,600,000 Net cash from financing activities (225,264) 1,600,000
Total cash movement for the year (2,550,723) (2,357,389)
Cash at the beginning of the year 4,071,022 6,428,413 Total cash at end of the year 4 1,520,299 4,071,024
43 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
1. Presentation of Annual Financial application of judgement is inherent in the formation of Statements estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include: Eswatini Economic Policy Analysis and Research Centre is a Government parastatal established in terms of the Companies Act of 2009. It is a corporate body with Trade receivables perpetual succession capable of suing and being sued, The centre assesses its trade receivables for impairment at subject to the provisions of the Act the end of each reporting period. In determining whether an impairment loss should be recorded in the income The addresses of the office and principal place of business statement, the centre makes judgements as to whether there are disclosed in the introduction of the annual report on is observable data indicating a measurable decrease in the page 1. estimated future cash flows from a financial asset.
1.1 Basis of preparation 1.2 New standards and interpretations not yet adopted a) Statement of compliance Amendments mandatory effective for the year ended 31 The financial statements are prepared in accordance with March 2019. the International Financial Reporting Standards (IFRS). The following is a summary of the new and revised The following are the principal accounting policies adopted IFRSs that are mandatory effective for the annual periods in the preparation of these financial statements as set out beginning on or after 1 January 2018. IFRS 15 Revenue below. These policies have been consistently applied in from Contracts with Customers Amendments to IFRS all material respects with those of the previous year, unless 15: Clarifications to IFRS 15 Revenue from Contracts with otherwise stated. Customers Amendments to IFRS 1: Annual Improvements to IFRS 2014 - 2016 cycle IFRIC 22 Foreign Currency b) Basis of measurement Transactions and Advance Consideration IFRS 9 Financial Instruments The financial statements have been prepared on the histrocial cost basis. IFRS 15 Revenue from Contracts with Customers c) Functional and presentation currency IFRS 15 Revenue from Contracts with Customers is These financial statements are presented in Emalangeni, based on the principle that revenue is recognised when which is the entity’s functional currency. All financial control of a good or service transfers to a customer. The information presented in the Emalangeni have been centre has adopted IFRS 15 Revenue from Contracts with rounded to the nearest figure. Customers from January 1, 2018 which resulted in changes in accounting policies. In accordance with the transition provisions in IFRS 15, the centre had restated comparatives d) Use of estimates and judgements for the 2018 financial year.
In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the
44 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
Amendments to IFRS 15: Clarifications Classification and measurement to IFRS 15 Revenue from Contracts with Customers The IFRS 9 standard includes changes in the classification and measurement bases of the centre’s financial assets to amortised cost, fair value through other comprehensive The amendments address three of the five topics identified income or fair value through profit or loss. Amounts (identifying performance obligations, principal versus owing by related parties, trade and other receivables, agent considerations and licensing) and provide some other financial assets and cash and cash equivalents are transition relief for modified contracts and completed measured at amortised cost. There is therefore no change contracts. The IASB concluded that it was not necessary to to classification of these assets. amend IFRS 15 with respect to collectibility or measuring IFRS 9 requires financial assets to be classified on the noncash considerations basis of two criteria: The business model within which financial assets are managed, and Their contractual cash Amendments to IFRS 1: Annual flow characteristics (whether the cash flows represent Improvements to IFRS 2014 - 2016 cycle solely payments of principal and interest).Financial assets are measured at amortised cost if they are held within a business model whose objective is to hold financial The amendment deleted shortterm exemptions covering assets in order to collect contractual cash flows, and transition provisions of IFRS 7, IAS 19 and IFRS 10 their contractual cash flows represent solely payments of which are no longer relevant. The amendments have no principal and interest.Financial assets are measured at fair impact on the centre’s financial statements. value through other comprehensive income if they are held within a business model whose objective is IFRIC 22 Foreign Currency Transactions and achieved by both collecting contractual cash flows and selling financial assets, and their contractual cash flows Advance Consideration represent solely payments of principal and interest. Other financial assets are required to be measured at fair value IFRIC 22 Foreign Currency Transactions and Advance through profit and loss if they are held for the purposes Consideration. The interpretation clarifies how to of trading, if their contractual cash flows do not meet the determine the date of transaction for the exchange rate to ‘solely payments be used on initial recognition of a related asset, expense
or income where an entity pays or receives consideration in advance for foreign currency denominated contracts. 1.2 New standards and interpretations not The amendment has no impact on the centre’s financial yet adopted (continued) statements. of principal and interest’ criterion, or if they are managed on a fair value basis and the centre maximises cash flows IFRS 9 Financial Instruments through sale. IFRS 9 allows an entity to irrevocably designate a financial asset as at fair value through profit The centre has adopted IFRS 9 as issued by the IASB in or loss if doing so eliminates or significantly reduces a July 2014 with a date of transition of 1 January 2018, measurement or recognition inconsistency (that is, an which resulted in changes in accounting policies and accounting mismatch). adjustments to the amounts previously recognized in the financial statements. The centre did not early adopt IFRS 9 in previous periods. Impairment calculation
The impairment model has been changed from an “incurred loss” model from IAS 39 to a forward looking “expected credit loss” (ECL) model under IFRS 9.IFRS
45 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
9 outlines a “three stage” model for impairment based on ECL estimates are based on multiple future scenarios credit quality since initial recognition, as summarized encompassing with favourable and unfavourable economic below:A financial asset / loan issued that is not conditions. credit impaired on recognition and has not undergone significant deterioration in credit risk (SICR) since initial recognition in classified in “Stage 1”. If a significant 1.3 Property, plant and equipment increase in credit risk since initial recognition has been identified, the financial asset is classified in “Stage 2” but is The cost of an item of property, plant and equipment is not yet deemed to be credit impaired. If the financial asset recognised as an asset when: is credit impaired then it is classified in Stage 3.Within the • it is probable that future economic benefits associated centre the following definitions exist for the classification with the item will flow to the centre; and of financial assets and identification of SICR: Any financial • the cost of the item can be measured reliably. Property, asset which is performing and up to 30 days in arrears is plant and equipment is initially measured at cost. considered Stage 1: Any financial asset with a maximum arrears level of between 31 and 90 days is considered Stage Costs include costs incurred initially to acquire or 2: Any financial assets with a maximum arrears level of construct an item of property, plant and equipment and greater than 90 days is considered credit impaired and costs incurred subsequently to add to, replace part of, or stage 3: Once the portfolio has been classified into the service it. If a replacement cost is recognised in the carrying three given stages, IFRS 9 loss allowances are measured on amount of an item of property, plant and equipment, the either of the following bases: Stage 1 : 12 month expected carrying amount of the replaced part is derecognised. loss – A 12 month ECL implies the loss expected in the 12 months following reporting date Stage 2 and Stage 3 : When an item of property, plant and equipment is Lifetime ECLs – that is, the loss expected over the lifetime revalued, any accumulated depreciation at the date of the of loans falling within this category. revaluation is restated proportionately with the change in the gross carrying amount of the asset so that the carrying ECL Methodology amount of the asset after revaluation equals its revalued amount. The methodology adopted by the centre to calculate Expected Credit Losses relies on historical cash flow data The revaluation surplus in equity related to a specific item across all jurisdictions. This data allows for an accurate of property, plant and equipment is transferred directly to estimation of historical losses, given certain levels of retained earnings when the asset is derecognised. arrears reached. This data takes into account any recoveries made from accounts which rectify from arrears, as well as written off amounts from accounts which failed to rectify. 1.3 Property, plant and equipment The historical data is distilled into Expected Credit Loss (continued) rates which are applied to individual accounts, based on the level of arrears for that account. Property, plant and equipment are depreciated on the reducing balance method over their expected useful lives In addition to the historical cash flow modelling, to their estimated residual value. Expected Credit Losses are subjected to forward looking adjustments based on “upside” and “downside” Property, plant and equipment is carried at cost less scenarios. That is, the final ECL value is a weighted accumulated depreciation and any impairment losses. average of the current impairment number (given current The useful lives of items of property, plant and equipment portfolio dynamics), a projected value based on favourable have been assessed as follows: conditions and a projected value based on unfavourable conditions. This is based on the IFRS 9 requirement that
46 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
Item Average useful life Subsequent measurement
Land and Buildings 0 years Loans and receivables are subsequently measured at amortised cost, using the effective interest method, less Furniture and fixtures 11 years accumulated impairment losses. Motor vehicles 5 years Office equipment 11 years Derecognition Computer 3 years Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been The residual value, useful life and depreciation method transferred and the centre has transferred substantially all of each asset are reviewed at the end of each reporting risks and rewards of ownership. period. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. Loans to managers and employees
The depreciation charge for each period is recognised in These financial assets are classified as loans and receivables. profit or loss unless it is included in the carrying amount of another asset. 1.4 Financial instruments (continued) Trade The gain or loss arising from the derecognition of an item and other receivables of property, plant and equipment is included in profit or loss when the item is derecognised. The gain or loss arising Trade receivables are measured at initial recognition at fair from the derecognition of an item of property, plant and value, and are subsequently measured at amortised cost equipment is determined as the difference between the net using the effective interest rate method. Appropriate disposal proceeds, if any, and the carrying amount of the allowances for estimated irrecoverable amounts are item. recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial difficulties 1.4 Financial instruments of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are Classification considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference The organisation classifies financial assets and financial between the asset’s carrying amount and the present value liabilities into the following categories: of estimated future cash flows discounted at the effective • Loans and receivables interest rate computed at initial recognition.
Classification depends on the purpose for which the The carrying amount of the asset is reduced through the financial instruments were obtained / incurred and takes use of an allowance account, and the amount of the loss place at initial recognition. Classification is re-assessed on is recognised in profit or loss within operating expenses. an annual basis, except for derivatives and financial assets When a trade receivable is uncollectable, it is written designated as at fair value through profit or loss, which off against the allowance account for trade receivables. shall not be classified out of the fair value through profit Subsequent recoveries of amounts previously written off or loss category. are credited against operating expenses in profit or loss.
47 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
Trade and other receivables are classified as loans and If the recoverable amount of an asset is less than its carrying receivables. amount, the carrying amount of the asset is reduced to its recoverable amount. That reduction is an impairment Trade and other payables loss.
Trade payables are initially measured at fair value, and An impairment loss of assets carried at cost less any are subsequently measured at amortised cost, using the accumulated depreciation or amortisation is recognised effective interest rate method. immediately in profit or loss. Any impairment loss of a revalued asset is treated as a revaluation decrease. Cash and cash equivalents 1.6 Employee benefits Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly Short-term employee benefits liquid investments that are readily convertible to a known The cost of short-term employee benefits, (those payable amount of cash and are subject to an insignificant risk within 12 months after the service is rendered, such as paid of changes in value. These are initially and subsequently vacation leave and sick leave, bonuses, and non-monetary recorded at fair value. benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. Bank overdraft and borrowings Pension obligation Bank overdrafts and borrowings are initially measured at The centre currently contributes pension to Aon fair value, and are subsequently measured at amortised cost, Swaziland on behalf of employees. The centre pays using the effective interest rate method. Any difference contribution to a privately administered pension plan on between the proceeds (net of transaction costs) and the a mandatory, contractural or voluntary basis. Once the settlement or redemption of borrowings is recognised over contribution have been paid, the centre has no further the term of the borrowings in accordance with the centre’s payment obligation. The regular contributions constitute net periodic costs for the year in which they are due and as accounting policy for borrowing costs. such are included in staff costs. 1.5 Impairment of assets Terminal benefits Termination benefits are repayable whenever an The centre assesses at each end of the reporting period employees’ employment is terminated before the whether there is any indication that an asset may be normal retirement date or when ever an employee accepts impaired. If any such indication exists, the centre estimates voluntary redudancy in exchange for these benefits. the recoverable amount of the asset. The centre recognises termination benefits when it is demonstratably committed to either terminate the If there is any indication that an asset may be impaired, the employment of current employees according to a detailed recoverable amount is estimated for the individual asset. If formal plan without possibility or withdrawal or to it is not possible to estimate the recoverable amount of provide termination benefits as a result of offer made to the individual asset, the recoverable amount of the cash- encourage voluntary redudancy. Benefits falling due more generating unit to which the asset belongs is determined. than 12 months are discounted to present values. The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its Statutory obligations value in use. The centre contributes to a statutory fund, Swaziland
48 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 2019
National Provident Fund (SNPF) in accordance with the Swaziland National Provident Fund Order of 1974.
1.7 Revenue
Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the centre and the amounts of revenue can be reliably measured.
Government grants Grants from Government are recognized at their fair value where there is a reasonable assurance that they will be received, and the centre will comply with the conditions applying to the grants. The balance of grants received but not shown as income is classified as deferred income.
Interest income Interest is recognised, in the income statement, using the effective interest rate method. When a recievable is impaired, SEPARC reduces the carrying amount, being the estimated future cash flow discounted at original effective interest rate of the instrurment, and continues unwinding the discount as interest income.
1.8 Related parties
The major related party to the centre apart from its directors is the Government of Swaziland who exercises a significant influence over its financial and operating decisions as it provides funding for its annual budget. The centre received a subvention of E5,400,000 (2018: E5,400,000) for the year under review.
49 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2019
Figures in Lilangeni 2019 2018
Cost / Accumulated Carrying Cost / Accumulated Carrying Valuation depreciation value Valuation depreciation value Land and Buildings 4,272,954 - 4,272,954 3,630,000 - 3,630,000 Furniture and fixtures 561,397 (255,165) 306,232 561,397 (224,542) 336,855 Motor vehicles 621,120 (483,542) 137,578 621,120 (449,148) 171,972 Office equipment 194,668 (93,606) 101,062 194,668 (83,500) 111,168 Computer equipment 866,727 (636,664) 230,063 831,497 (539,394) 292,103 Total 6,516,866 (1,468,977) 5,047,889 5,838,682 (1,296,584) 4,542,098
Reconciliation of property, plant and equipment - 2019
Opening Additions Depreciation Total
Balance
Land and Buildings 642,954 642,954 - 4,272,954 Furniture and fixtures 336,855 - (30,623) 306,232 Motor vehicles 171,972 - (34,394) 137,578 Office equipment 111,168 - (10,106) 101,062 Computer Equipment 292,103 35,230 (97,270) 230,063 4,542,098 678,184 (172,393) 5,047,889 Reconciliation of property, plant and equipment - 2018
Opening Additions Revaluations Depreciation Total balance
Buildings - 2,805,705 824,295 - 3,630,000 Furniture and fixtures 356,894 13,210 - (33,249) 336,855 Motor vehicles 214,965 - - (42,993) 171,972 Office equipment 122,285 - - (11,117) 111,168 Computer Equipment 312,940 95,238 - (116,075) 292,103 1,007,084 2,914,153 824,295 (203,434) 4,542,098
The land and buildings is situated on Plot 874, Mbabane Township.
3. Trade and other receivables
Shamba Trust 90,000 - Staff advances 10,500 7,823 Prepayments 52,242 140,980 Director’s advance - 2,413
152,742 151,216 50 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
STATEMENT OF CASH FLOWS
for the year ended 31 March 2019
Figures in Lilangeni 2019 2018
4. Cash and cash equivalents
Cash and cash equivalents consist of: Petty cash 5,000 3,000 Bank balances 1,515,299 4,068,022 1,520,299 4,071,022 Bank balances
Standard Bank - Current a/c 372,327 2,563,559 Central Bank of Swaziland - Fixed deposit a/c 1,140,000 1,500,000 UNDP Current a/c 331 1,881 African Alliance 2,642 2,582 1,515,300 4,068,022 5. Share capital Authorised
1000 Ordinary shares of E1.00 each 1,000 1,000 Issued
Ordinary 2 2 6. Revaluation reserves
Revaluation surplus 824,295 824,295 The revaluation surplus arises from a revaluation of property on Plot 874, Mbabane Township conducted by Ngwenya Wonfor, the property valuator.
7. Borrowings
Standard Bank Swaziland (Limited) mortgage loan 1,374,736 1,600,000
Non-current liabilities
At amortised cost 1,097,334 1,373,231 Current liabilities
At amortised cost 277,402 226,769 1,374,736 1,600,000 Standard Bank Swaziland Limited mortgage loan terms are as follows:
1. The loan facility is to be repaid in full no later than 60 months after the date of the initial draw down;
2. The loan facility is to be repaid in 60 monthly instalments of E35,600.00 inclusive of the interest rate, payable on the last day of each month.
3. The interest rate on the mortgage loan facility will be charged at the bank’s prevailing prime rate plus 1.5% per annum on the amount drawn down.
4. Security on the mortgage loan of E1,600,000.00 will be held over Plot 874, Mbabane Township, Mbabane valued at
E3,630,000.00 by Ngwenya Wonfor dated 4th December 2017.
51 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2019
Figures in Lilangeni 2019 2018
8. Trade and other payables
Trade payables 290,906 310,350 Trade and other payables
Trade payables 109,483 60,627
PAYE accruals 111,298 76,234
Accrued expenses - 2,500
SRA PAYE penalties - 170,990 220,781 310,351 9. Deferred income
Opening Balance 5,814,408 7,023,655
Swaziland Government Grant 5,400,000 5,400,000 UNDP 347,418 745,414 Consultancy fees 596,000 774,450 Other Income 125,973 334,516 Provisions written off - 217,374 PAYE liability (late filing 2014 9,102 (170,990) penalties) Grant utilized (8,250,171) (8,510,011) 4,042,730 5,814,408 10. Provisions
Reconciliation of provisions - 2019
Opening Additions Utilised during Total balance the year Contract commitments 133,000 48,982 (76,000) 105,982 Audit fees 82,280 82,280 (82,280) 82,280 215,280 131,262 (158,280) 188,262 Reconciliation of provisions - 2018
Opening Additions Utilised during Reversed Total balance the year during the year Contract commitments 217,375 133,000 - (217,375) 133,000
Audit fees 74,800 82,280 (74,800) - 82,280 292,175 215,280 (74,800) (217,375) 215,280 11. Sundry income SEC Advert refund - 70,284 Swaziland Economic Conference - 65,000 Nedbank 5,500 - Eswatini National Provident Fund 28,325 - 52 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2019
Figures in Lilangeni 2019 2018 Figures in Lilangeni 2019 2018
8. Trade and other payables 12. Auditors’ remuneration
Fees 82,280 82,280 Trade payables 290,906 310,350 Trade and other payables Audit fees Kobla Quashie and Associates Trade payables 109,483 60,627 82,280 82,280 13. Cash used in operations PAYE accruals 111,298 76,234
Accrued expenses - 2,500 Surplus for the year
SRA PAYE penalties - 170,990 Adjustments for: - - 220,781 310,351 Depreciation and amortisation 172,393 203,435 9. Deferred income Movements in provisions (27,018) (76,895) Opening Balance 5,814,408 7,023,655 Changes in working capital: Swaziland Government Grant 5,400,000 5,400,000 Trade and other receivables (1,526) (99,610) UNDP 347,418 745,414 Trade and other payables (19,444) 139,080 Consultancy fees 596,000 774,450 Deferred income (1,771,680) (1,209,246) Other Income 125,973 334,516 (1,647,275) (1,043,236) Provisions written off - 217,374 14. Related parties
PAYE liability (late filing 2014 9,102 (170,990) Relationships penalties) Grant utilized (8,250,171) (8,510,011) Parastal organisation Government of Swaziland 4,042,730 5,814,408 Donor UNDP 10. Provisions Members of key management Mr. D. Masilela (Re-appointed on 02 May 2018)
Reconciliation of provisions - 2019 Mr. P. Ginindza (Re-appointed on 02 May 2018) Ms. T. R. Zwane (Re-appointed on 02 May 2018) Opening Additions Utilised during Total balance the year Prof. C. M. Magagula (Re-appointed on 02 May 2018) Contract commitments 133,000 48,982 (76,000) 105,982 Audit fees 82,280 82,280 (82,280) 82,280 Mr. M. Sithole (Re-appointed on 02 May 2018) 215,280 131,262 (158,280) 188,262 Mr. A. Dlamini Reconciliation of provisions - 2018 Dr. T. S. Dlamini (Resigned 31 March 2019)
Opening Additions Utilised during Reversed Total Ms. H. Motsa (Appointed on 02 May 2018) balance the year during Mr. M. Dlamini (Appointed on 02 May 2018) the year Ms. W. Dlamini (Appointed on 02 May 2018) Contract commitments 217,375 133,000 - (217,375) 133,000 Related party transactions Audit fees 74,800 82,280 (74,800) - 82,280 Income 292,175 215,280 (74,800) (217,375) 215,280 Government of Swaziland grant 5,400,000 11. Sundry income Board expenses SEC Advert refund - 70,284 Sitting allowances 203,848 Swaziland Economic Conference - 65,000 231,186 Nedbank 5,500 - 15. Rent paid Eswatini National Provident Fund 28,325 - Eswatini National Provident Fund 249,495 496,435 53 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
DETAILED STATEMENT OF FINANCIAL PERFORMANCE
for the year ended 31 March 2019
Figures in Lilangeni Note(s) 2019 2018
Income
Government grant 7,180,780 6,655,631 Consultancy fees 596,000 774,450 UNDP grant 347,418 745,414 8,124,198 8,175,495 Other income
Interest received 92,148 199,232 Sundry income 33,825 135,284 125,973 334,516 Operating expenses
Agenda setting workshops - 13,916 Auditors remuneration 12 82,280 82,280 Bank charges 100,632 91,816 Board expenses 236,886 203,848 CPIA Country Policy Institutional Assessment - 12,000 Computer expenses 69,121 113,530 Consultancy fund 97,212 488,156 Depreciation 172,393 203,435 Employee costs 4,737,318 4,105,621 Finance costs 164,733 - Insurance 112,571 118,416 Motor vehicle repairs & maintenance 30,649 74,552 Municipal rates 86,857 - Office expenses 135,850 118,566 Project Advisory Committee - 8,375 Publicity and communications 364,230 216,176 Rent 249,495 496,435 Repairs and maintenance 55,294 47,714 Research policy analysis costs 336,629 178,186 Resource centre and library - 91,580 Security 53,448 - Staff welfare 187,448 258,000 Subscriptions 18,213 20,227 Swaziland Economic Conference - 309,366 Swaziland Energy Regulatory Authority Study 22,500 21,203 TVET Industry Skills GAP Analysis - 122,074 Technical Sub-Committee Expenses - 274 Telephone 99,914 81,436 Training 366,448 145,027 Travelling expenses 66,253 72,793 UNDP 326,400 745,414 Utilities 59,553 38,500 Website development 17,844 31,095 8,250,171 8,510,011 54 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
55 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
56 Annual Report 2018/19 Eswatini Economic Policy Analysis and Research Centre
57 Eswatini Economic Policy Analysis and Research Centre Annual Report 2018/19
ESEPARC ESWATINI ECONOMIC POLICY ANALYSIS AND RESEARCH CENTRE
Plot 874, Mbabane Township, Eswatini, Siphefu Street Contact: +268 2404 9077/3033/2823 Email: [email protected] Website: www.separc.co.sz App: SEPARC Insights
58