Eswatini minister highlights vast CEO to worker pay gaps
Minister Manqoba Khumalo stated some CEOs earn E280,000 while lowest paid workers take home E3,500.
Minister for Commerce, Industry and Trade Manqoba Khumalo explained that Eswatini's economic growth does not benefit ordinary workers due to vast salary disparities in some companies. He noted the absence of formal salary structures means the gap between chief executive officers and the lowest-paid employees is determined solely by management. Khumalo cited an example where a CEO earns E280,000 while a worker receives E3,500, meaning the boss earns 80 times more.
Speaking at a breakfast meeting in Ezulwini, Khumalo stated that in companies with such gaps, economic growth benefits only high earners, leaving those at the bottom unaffected. The World Bank projects Eswatini's economy to grow by five percent, its strongest since 2019, yet over half of emaSwati live below the poverty line. Khumalo previously stated in August that income inequality remains a significant challenge, with growth benefits not always distributed equally.
Khumalo pointed out that pay gaps have been closed in developed countries. He previously served as Coca-Cola's general manager in Ireland before becoming a senator and minister in Eswatini. Economists are observing Eswatini's growth but questioning its distribution. The minister stressed that continued attention is needed to achieve more inclusive economic growth.
Why it mattersOrdinary workers in Eswatini are not feeling the benefits of economic growth due to large salary gaps between CEOs and the lowest-paid employees.