Africa-Press – Eswatini. The loss of 650 jobs as a result of a textile firm’s closure is difficult to overlook, as it adds salt to an already raw wound for the unemployed population. Though job prospects exist in the form of planned projects and potential new markets under AGOA, safeguarding existing jobs is equally, if not more, important. The Golden Jubilee Textile Factory, a sub-factory of the Tex Ray Eswatini Group, closed due to disruptions in the global production and supply chain system caused by the COVID-19 pandemic, the Russia-Ukraine war, and a drop in orders from the global market.
Some countries, such as South Africa, have incentivised their companies to buy from their own industries, similar to our ‘buy eswatini’ campaign. This change has resulted in fewer orders for the Eswatini textile sector, causing temporary layoffs and, more recently, retrenchments. As a result, other nations are creating more jobs for their people, while we are losing our own. The main takeaway from this is that if we are to truly address the unemployment issue, we must do everything possible to save existing jobs while creating new ones. We must ensure that all sectors responsible for fostering a favourable business climate prioritise job creation above all else, following the example of the countries that are our customers.
Some of these job-securing actions include enacting legislation and policies that improve the ease of doing business, competitive tax incentives, seamless licensing and permit acquisitions, paying for services rendered within 30 days to avoid cash flow challenges, competitive utility fees, providing the appropriate skills for the industry, securing markets, and having a fair and just adjudication of business disputes by our judicial system, among others.
Recently in Sibaya, the people’s parliament discussed the high unemployment rate as one of the four major national concerns (emanyeva), and His Majesty the King declared it a national tragedy in his closing address, underscoring the need for appropriate implementation of the aforementioned. Other troublesome issues were the health crises, corruption, and a lack of service delivery.
Following this, the government promised to use these issues as a guide for policy direction. The public was promised action based on a preliminary strategic plan, which would be followed by a master plan that is still in the making. It is fair to note that there have been positive movements towards implementing measures to improve the business environment, such as the Citizens Economic Empowerment Act, the reduction of corporate tax from 27.5 per cent to 25 per cent, improvements in tax payments, online business registration, and lower data charges, to name a few. What does not seem clear is the judiciary’s role in guaranteeing equitable and timely resolution of commercial disputes in order to avoid potential job losses.
Criticism
The judiciary was also put under the spotlight at Sibaya and faces criticism from the legal fraternity, with questions raised regarding the bench’s impartiality in carrying out its mandate. The Law Society of Eswatini has called for the impeachment of Chief Justice Bheki Maphalala, citing his alleged interference in the administration of justice. The allegations involve two firms, Big Tree Filling Station and Galp, among other allegations. Given that one of the affected parties received a judgement on this matter from a police officer rather than in open court, the courts’ handling of this matter does little to foster confidence in the judiciary and borders on a mockery of justice. Cases coming up without notification of the other party and applications for judge recusals are refused even where, in the eyes of the layman, conflict exists. Not to mention giving judgements in the wrong case, let alone the number of years it has taken to resolve this business dispute.
The significance of the courts in employment creation is key. Their actions have far-reaching consequences, as evidenced by the fact that a huge number of unemployed employees are sitting idle in hunger while waiting for justice to be served. They are questioning: if the courts will not save them, who will? In a paper on ‘The Judiciary’s Role in Economic Prosperity,’ former Indiana Supreme Court Justice Randall Shepard posed the question; ‘What can courts do to help with employment creation and retention?’ He listed three imperatives.
“First, courts must strive to handle similar instances uniformly by using clear and predictable tort and contract law norms. Second, courts must be neutral and treat all litigants equally, whether they are businesses or people. Third, the judiciary must seek to settle conflicts efficiently and affordably,” he stated. He emphasised the importance of courts in promoting economic and political stability, as well as the need to prioritise job creation efforts. “The answer is that courts must perform what they do better, especially during difficult economic times. Courts must retain independence and impartiality. Clear regulations must be established and followed consistently to allow firms to prepare accordingly.
Courts must handle issues swiftly and diligently. After all, courts do influence economic behaviour; therefore, the courts must do their share to collaborate with the other two branches—within the scope of the judicial role—to help establish a more affluent society,” he said. Can we say that Eswatini’s courts help to create jobs by carrying out their mandate judiciously?
Certainly not in the current judicial environment. Now is the time to take this seriously, or else all other job development initiatives will fail. Since unemployment is a national crisis, we must give each threat—even to a single job—proper and meaningful attention in accordance with the ‘Nkwe declaration’.
Source: times
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