EU grants US $5 million

The European Union (EU) has given Swaziland a US $5 million grant for fiscal reform to help maintain Swaziland’s “stable” macro-economic environment. According to media reports, the EU’s grant will reduce the country’s dependence on trade-related taxation from the five-member Southern African Customs Union (SACU) of Botswana, Lesotho, Namibia, Swaziland and South Africa. It is expected that Swaziland’s earnings from SACU - which have made up over 50 percent of its budget - are expected to dwindle as new World Trade Organisation (WTO) and Southern African Development Community (SADC) trade pacts come into effect.