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Swaziland was facing a possible economic crisis as two South African companies operating in the country prepared to retrench large parts of their work force, news reports said on Monday.
South African paper and pulp group Sappi said in a statement at the weekend that it was considering liquidating its Usutu plant and retrenching 1,500 workers if the mill was unable to reduce its costs by US $8.3 million within the next three months. Masterfridge, the already liquidated refrigerator and freezer manufacturer, is expected to go under the hammer this month too. According to reports, more than 1,000 jobs could be lost if the company can not be sold as a unit.
Reports said that the Swazi government had requested the auctioneers to sell Masterfridge as a going concern in order to save as many jobs as possible. But Rael Levitt of Auction Alliance, which is handling the auction, said he did not think this would be possible. Sappi and Masterfridge are two of the largest employers in Swaziland.
This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions
