Johannesburg: South Africa will give a 2.4 billion rand ($ 354 million) loan to help ease a crippling financial crisis that has sparked massive protests in Swaziland, officials on Wednesday announced, saying the bailout is conditional on reforms in the tiny kingdom.
Swaziland has battled to manage a growing budget deficit that has caused widespread shortages of medications and that has spurred pro-democracy protests in the absolute monarchy. Critics accuse the administration of King Mswati III of mismanagement and corruption, and many Swazi activists and organisations opposed the loan.
Swazi union leader Vincent Dlamini called for a new government to manage the funds.
"We must not be too quick to celebrate," he said. "It is worrying that the corrupt people (have) not been removed from the system, money will still be mismanaged."
South African officials said the loan is contingent on economic and financial reforms and will be subjected to regular audits by a joint task team made up of representatives from the World Bank, the International Monetary Fund, South
Africa's National Treasury and the African Development Bank.
The officials said in a statement that they are committed to "confidence-building measures" to improve human rights and governance.
"While the need for fiscal reforms is the primary objective, this has to be anchored by governance reforms," South Africa's finance ministry said in a statement.
Mswati announced the deal to Swazis upon his return from South Africa on Tuesday.
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