Hon Chairperson, hon members and hon Sibande, let me start by quoting from the United Nations Declaration on Principles of International Law of 24 October 1970, which states as follows:
All States enjoy sovereign equality. They have equal rights and duties and are equal members of the international community, notwithstanding differences of an economic, social, political and other nature.
In particular, sovereign equality includes the following elements:
a) States are judicially equal;
b) Each State enjoys the rights inherent in full sovereignty;
c) Each State has the duty to respect the personality of the other States;
d) The territorial integrity and political independence of the State are inviolable;
e) Each State has the right freely to choose and develop its political, social, economic and cultural systems;
f) Each State has the duty to comply fully and in good faith with its international obligations and to live in peace with other States.
It is important that all of us are familiar with these principles, which are the basis of South Africa's Constitution and foreign policy.
Furthermore, Swaziland was a member of the African Union, formerly known as the Organisation of African Unity, and SADC long before we established a free and democratic South Africa in 1994. At the same time, Swaziland is a founding member of the Southern African Customs Union, the oldest existing customs union in the world, established in 1910.
Let me also recall that SADC's vision is one of a common future within a regional community where the economic wellbeing, improvement of the standards of living and quality of life, freedom and social justice, and peace and security for the peoples of Southern Africa will be ensured. This shared vision is anchored in the common values and principles and the historical and cultural affinities that exist among the peoples of Southern Africa.
Our bilateral and other relations with Swaziland are basically informed by these factors. Swaziland was facing a severe cash crisis. Therefore the main reason for this loan was to help her through this budget predicament. Our financial and technical assistance to the Kingdom of Swaziland is aimed at preventing what is at the moment essentially a cash flow crisis from becoming a financial and economic crisis. South Africa's loan will be offered in three instalments, which will be transferred to the Central Bank of Swaziland. The first instalment will be given immediately after the signing of agreements. The subsequent equal payments will follow in October and in February next year.
Under the terms of the loan, Swaziland must protect the peg between the lilangeni, that kingdom's currency, and the South African rand. She must also strengthen financial reporting and the auditing of her accounts. In other words, Swaziland must implement both governance and fiscal reforms. Most importantly, she must increase dialogue with the Swazi people.
The terms of the agreement include the fact that the government of Swaziland should meet the following objectives. It must promote economic and social development, democracy, human rights and good governance. Swaziland must also comply with the fiscal reforms recommended by the International Monetary Fund. These will be monitored by a task team from the World Bank, the International Monetary Fund, South Africa's National Treasury and the African Development Bank. It was also agreed that South Africa would work with Swaziland to build governance and fiscal capacity.
The promotion of the political and economic integration of the continent continues to drive the African agenda. As this is the case, a commitment exists to give impetus to this objective, which is rooted in the need to strengthen Africa's political, economic and social development, as well as her peace and security agenda.
The South African government has committed to a deepened contribution to regional and continental security, stability and sustainable development. Within this context, strengthening regional integration in the Southern African Customs Union and SADC remains a major priority that will contribute to the sustained integration of the region into the global economy. South Africa places particular emphasis on political cohesion, economic integration and the building of efficient and responsive economic infrastructure.