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Swazi police move to contain protests

Mbabane - Swazi police flooded the streets of the kingdom's capital on Friday ahead of a protest by unions, civil servants and students calling on the government to resign.

Swaziland is in the grip of a serious financial crisis and civil servants fear they will not be paid this month after Africa's last absolute monarchy suffered a huge drop in income from the Southern African Customs Union (Sacu).

Trade unions and opposition parties, which are officially banned, are demanding the government resign. Protesters were inspired by the uprisings in North Africa.

"Government corruption is draining our country," said Masuko Mario, president of the People's United Democratic Movement.

"We are here to demand the unbanning of political parties. We have no confidence in the government and want a new interim government to be put in place and for political parties to be unbanned."

Unemployment in the nation of 1.4 million people is about 40%, with 70% of the population living below the national poverty line.

In contrast, King Mswati III - who has 14 wives - has a personal fortune of $200m, according to Forbes magazine.

Hundreds of police officers and special armed units deployed on the streets of Mbabane and roads leading to a park where hundreds of protesters gathered were blocked off.

"We are inspired by the events in the Middle East and North Africa. This regime must be removed," said Sarah Dlamini, one of the protesters.

The International Monetary Fund (IMF) said this month Swaziland faced big fiscal challenges in the current financial year, with its budget deficit soaring to a whopping 13% of gross domestic product.

Salaries of civil servants have been frozen after the country - Africa's third-biggest sugar producer - suffered a 60% drop in income from  Sacu, which accounts for two-thirds of state revenues.

Government sources told Reuters that 7 000 of the country's 35 000 civil servants would be retrenched in the next three years, in an attempt to cut state spending on salaries.

A $145m loan from the African Development Bank (AfDB) will only be granted if some IMF criteria, including reducing the state's wage bill, are met.

If the AfDB loan is not granted, the government, which has been dipping into central bank reserves to pay state wages, could be bankrupt by June or July.

The IMF expects economy to grow by a mere 0.5% in 2011, while inflation is likely to rise to around 8%.

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