Search

Begin New Search Political Geography Eswatini Author Mangaliso Mohammed

1. The Economic Benefits of Vocational Education and Training in the Kingdom of Eswatini

Author:
Gugulethu Mgabhi and Mangaliso Mohammed
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
This study assesses the economic benefits of the Government of Eswatini’s investment to technical vocational education and training (TVET) from 2005 to 2017. TVET Graduates from 12 public TVET Institutions have been tracked to uncover their absorbability in the labour market and, or self-employment. The study finds that the economic return of the Government of Eswatini’s investment to TVET in 2017 is E1,51. This means that for every E1 invested by the Government of Eswatini to TVET, the economy generates E1,51 through the TVET graduates’ activities in self-employment, formal employment, and part-time skills utilisation. With regards to highly demanded courses amongst the graduates, ccomputer studies have been found to be highly demanded at 20.9%, while agriculture is lowly demanded at 6.3%. The study finds that 56.6% of the graduates are absorbed in formal employment, while 13.7% are engaged in self-employment, meaning that 29.9% are part of the 32.4% unemployed persons in the country. However, the level of unemployment is still high, 43.3%. Graduates who were not economically active before enrolling at the TVET colleges have been found to be formally employed, 35%, 14% are self-employed, 2.5% are both formally and self-employed, while 48.5% are unemployed. A majority (58.5%) of employed graduates are from Gwamile VOCTIM, while self-employment is high amongst graduates from Big Bend Rural Education Centre, 44.4%. Unemployment has been found to be very high among graduates from Ekululameni, 100%. The study recommends that the Government of Eswatini should consider promoting self-employment amongst graduates. This could be done through establishing links with financing agencies to increase the rate of self-employment and reduce unemployment.
Topic:
Economics, Education, Governance, Training, Vocational Training, and Investment
Political Geography:
Africa and Eswatini

2. Implications of migration to cost-reflective tariffs in Eswatini’s electricity sector

Author:
Mangaliso Mohammed and Thabo Sacolo
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
The study investigates the possible impacts of migrating to cost reflective tariffs in Eswatini’s electricity sector. This involves assessing the electricity consumptions patterns of the different electricity customer categories in relation to the electricity tariffs to estimate potential responses to future price changes that might be induced by cost-reflective tariffs. For the domestic customer category, the study uses the own-price elasticity method while for the non-domestic customer it estimates the elasticities using the Seemingly Unrelated Regression adopted from Inglesi-Lotz and Blignaut (2011). The study finds that a 2 cent real increase in electricity tariff is associated with a decrease in average consumption of 185.6 kWh for the domestic customer. Average elasticity over the 21-year period is -0.58 implying that domestic customers do not respond much to changes in electricity tariffs. For the non-residential customers, the industrial customer group is the only group significantly impacted by changes in electricity tariff. The elasticity coefficient for the industrial customer group is -0.157, which implies that even though this customer group responds to changes in electricity tariff, a proportionate increase in electricity price results in a less than proportionate decrease in electricity consumed. Overall, the study finds that demand for electricity for both domestic and non-domestic customer group is not responsive to changes in electricity tariff, that is, demand is inelastic. This means the cost reflective tariffs will most likely decrease intensive use of electricity in Eswatini, especially for low income households, which will make extending the grid and supplying electricity to low income households a much more expensive endeavour for the utility. The study recommends that before implementing the cost-reflective tariffs, the energy regulator (ESERA) should ensure that the utility (EEC) establishes efficiency improvements on the supply and distribution of electricity in Eswatini. In the long-run Eswatini should expedite national plans to increase local production of power to reduce the cost of power.
Topic:
Energy Policy, Migration, Borders, Tariffs, Local, and Electricity
Political Geography:
Africa and Eswatini

3. Exploring the relationship between unemployment and mental illness among the youth in selected communities of Eswatini.

Author:
Thula Dlamini, Tengetile G. Hlophe, and Mangaliso Mohammed
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Studies have demonstrated that the effects and consequences of a lack of work has detrimental effects on one’s mental health. With high levels of youth unemployment presenting a threat to the country’s efforts to sustainable economic development the study seeks to understand the link between the increasing mental illness cases and rising youth unemployment in Eswatini. Using secondary data from the Health Management System, the study traces the areas that have high reported cases of mental illness and conducts 99 semi-structured interviews within these case areas. A rapid assessment is used to assess the relationship between mental health and youth unemployment. Using Jahoda’s latent deprivation model, the study finds that youth unemployment negatively affects mental health particularly through increased idleness and stress leading to high levels of substance abuse, which has a negative impact on mental health. The study also finds that mental health disorders such as anxiety, depression and sometimes schizophrenia are exacerbated by the lack of recreational and structured activities for out of school and unemployed youth in Eswatini. Therefore, policy makers should consider the impact of youth unemployment on mental health as a way of investing in Eswatini’s human capital, thus creating more economically productive interventions for youth to undertake during the periods of unemployment and being out of school.
Topic:
Health, Employment, Youth, Mental Health, and Unemployment
Political Geography:
Africa and Eswatini

4. Stokvels: An Instrument for Income Generation and Wealth Creation?

Author:
Ntando Nkambule and Mangaliso Mohammed
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Stokvels are increasingly being recognised as a solution to contribute to income generation and wealth creation, especially amongst low-income earners who are excluded from the formal financial markets. This study investigates the contribution of stokvels to income generation and wealth creation in Eswatini focusing on the poorest region, Lubombo. The study uses 436 stokvel participants which were accessible through NGOs (Joyful-heart, Bantwana Initiative, Imbita Women Finance Trust, and World Vision) which promote savings groups in the country, Lubombo region. The study employs Principal Component-based asset index as a proxy for assets accumulation (wealth creation). The findings from the descriptive statistics indicate that women are dominating stokvels participation in households. In support of income generation, the participants in the study are capable of saving up to E796,123 per annum, and the total loan amount issued increases the total contributions by 6.7%. The generated revenue results for a total of E0.8m. Even though the prominent goals for most of the participants are consumptive, still members can acquire assets and accumulate wealth through borrowing before the cycle matures, thus significantly increasing their socioeconomic status. The study recommends an establishment of a stokvel representative body (such as Eswatini National Association of Stokvels) to capture the Lilangeni value of stokvels that generate in the informal economy, as well as assist in promoting stokvels campaigns for information exchange platform, deal with other stokvels issues of interest, and create and monitor a stokvel data base in the country.
Topic:
Poverty, NGOs, Unemployment, Wealth, and Income
Political Geography:
Africa and Eswatini

5. Assessing the Impact of National Marketing Boards on Consumers and Producers’ Welfare

Author:
Thembumenzi Diamini, Mangaliso Mohammed, and Thabo Sacolo
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Food production in Swaziland has historically been insufficient, even after the introduction of National Marketing Boards. This is despite their mandate emphasised in the National Development Strategy (NDS) and Agriculture Sector Policy to develop smallholder agriculture through commercialisation, value addition and market access. The low food production coupled with high food prices and dependency on food imports increases the food-insecure population in the country. Hence, the study uses a Partial Equilibrium Model to assess the welfare impact of National Marketing Boards, in particular the National Maize Corporation (NMC) and Swaziland Dairy Board (SBD), on consumers and producers. The results show that over the five-year period, on average, the loss in maize per consumer was E94.22 per year, resulting in an average consumer loss of E116,975,312.30 per year. However, the average producer gains were E35,651,178.21; indicating that highly commercialised maize producers were benefiting from the NMC while consumers were losing through higher maize prices compared to what they would have received in a competitive environment. In the same period, on average, the milk producer gains were E35,545,181.85 while the consumer losses were E243,676,441.51 per year. This implies that commercial farmers are gaining at the expense of consumers. The average individual maize consumer losses amount to E197.90 per year. The study concludes that National Marketing Boards do contribute to low food production, high consumer prices, and economic losses. Therefore, it is recommended that policy makers need to design policies and strategies that comply with the heterogeneous markets in order to benefit consumers and producers.
Topic:
Agriculture, Food, Food Security, Welfare, and Service Marketing
Political Geography:
Africa and Eswatini