BY PRINCESS MAHLALELA
MBABANE- Chairperson of the SACU Council of Ministers Minister of Finance Neal Rijkenberg has expressed optimism about finding an amicable settlement to the ongoing Russia-Ukraine conflict.
Rijkenberg said resolving the conflict is vital for the global and SACU economy, given its negative impact on various sectors.
Speaking during the opening of the 49th Meeting of the SACU Council of Ministers in Ezulwini, the Minister highlighted the spillover effects of the conflict, such as constraints on global economic growth prospects and threats to food security. He said the surge in food and energy prices has left citizens vulnerable, further intensifying the urgency of reaching a resolution.
The Minister acknowledged the recently concluded Ministerial Retreat, praising the engagement and reflection on the strategic, policy, and governance challenges facing SACU. He emphasized the importance of finding solutions to enable the organization to achieve the objectives outlined in the SACU Strategic Plan 2022-2027.
The minister also shed light on the current global economic prospects, noting a projected slowdown in growth. According to the International Monetary Fund (IMF) forecasts, the global economy is expected to decline from 3.4% in 2022 to 2.8% in 2023. Advanced economies are also projected to experience a decline from 2.7% to 1.3% in 2023, with limited improvement in 2024.
Similar trends are anticipated for emerging market and developing economies, with a lower growth rate of 3.9% in 2023 compared to 4% in 2022. Within Sub-Saharan Africa, SACU member states are expected to record an average weighted growth rate of 1.8% in 2023, compared to 2.3% in 2022.
However, Rijkenberg highlighted positive signs regarding global inflation, which is expected to decline from 8.7% in 2022 to 7% in 2023, primarily due to lower commodity prices. Nevertheless, political developments in the region, such as the upcoming national elections in the Kingdom of Eswatini, remain important considerations.
The minister emphasized the need for SACU to accelerate the implementation of its Strategic Plan, as it presents a valuable opportunity to expedite industrialization and stimulate economic growth in the post-COVID-19 era. Rijkenberg urged member states to dedicate their time and resources to ensuring the plan’s successful implementation, which will provide significant employment opportunities for citizens.
As the SACU Council of Ministers convenes in Ezulwini, the regional body remains hopeful for a positive resolution in the Russia-Ukraine conflict. The emphasis on finding solutions aligns with SACU’s commitment to bolstering the global and regional economy.
