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afrol.com / AENS, 17 November - Swaziland's violent clampdown on pro-democracy activists and its defiance of US and international union calls for less repressive labour legislation may have cost the country 20,000 jobs promised by investors. Swaziland's Chamber of Commerce and Industry executive secretary Sibusiso Sibandze confirmed on Friday that investors had warned they were holding back on plans for new factories and other ventures because of increasing civil unrest and government's apparent inability to address public concerns. Those concerns are set to grow when the kingdom's union and pro-democracy movement unites with South Africa's largest labour union federation, the Congress of SA Trade Unions (Cosatu), to blockade all Swaziland's border posts for two days starting November 29. The economic blockade forms part of a rapidly escalating campaign to force absolute monarch King Mswati III into liberalizing the kingdom's labour laws and repeal a 1973 royal decree banning party politics. The South African-based Swaziland Solidarity Network (SSN) and a broad alliance of other banned political parties called for international trade sanctions this week, while the International Labour Organisation (ILO) has threatened to lobby against the kingdom too unless reforms are forthcoming. The growing protest action saw the 81 000 member umbrella Swaziland Federation of Trade Unions (SFTU) and its 21 affiliates strike illegally for two days earlier this week. The stayaway was eventually broken when Swazi police arrested or hospitalised key labour and political leaders. The turmoil, and growing anti-monarchist sentiments across the border in South Africa, are set to hit Swaziland's already ailing economy at the worst possible time. Swaziland is desperately gearing for the loss of Southern African Customs Union revenue receipts when the union is dissolved as part of regional trade tariff reform. The customs receipts currently make up almost 50 percent of government revenue. The inevitable drop in revenue mirrors sliding economic grow rates of roughly 2,7 percent, down from six percent during the heady days of apartheid inspired prosperity when the tiny kingdom served as sanctions hedge to disguise South African exports. Sibandze warned on Friday that the planned Cosatu / SFTU blockade of border posts would have a serious longterm economic impact on Swaziland. "[Business] can plan around the blockage by rescheduling movements to days before and after the blockage, but the longterm effects cannot be countered by contingency planning," said Sibandze. - The main effect of the blockage will be psychological. If tourists are turned away at the border, for example, the resultant negative publicity could hurt the tourism industry for years. Government may finally be attempting to contain that fallout, reversing its original ban on trade union meetings late this week and committing to Labour Advisory Board negotiations to resolve worker concerns over a controversial, three-month-old Industrial Relations Act. SFTU secretary general Jan Sithole on Friday dismissed the apparent concessions as "mere politicking", however, and said the pro-democracy movement would push ahead with the blockade. "COSATU [staged] a meeting to discuss strategy this weekend," said Sithole. A two-member ILO fact-finding mission meanwhile wrapped up a weeklong visit to Swaziland on Friday. The task team is expected to recommend whether or not the US should include Swaziland in two key trade pacts it offers developing countries. The US has already excluded Swaziland from trade benefits under the recently passed Africa Growth and Opportunity Act and is threatening to expel the country from the Generalised System of Preferences unless it amends its industrial laws by year-end. Analysts warn that Swaziland's exclusion from the trade pacts would force its already troubled economy to its knees. Swaziland's traditionally pro-monarchy business leaders ganged up to publicly condemn government earlier this week. - The events of recent weeks have received international media attention. The impact on business and investors goes deep as it affects the viability of our businesses to provide employment, pay taxes and earn foreign exchange, the Swaziland Chamber of Commerce and Industry, the Federation of Swaziland Employers, and the Association of Swazi Business Community said in an unprecedented joint statement.
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