Africa-Press – Eswatini. Eswatini has clinched over E3 billion in concessional financing from global partners — a move hailed as a turning point for the nation’s economy.
Speaking in the latest edition of Finance in Focus, Minister of Finance Neal Rijkenberg proudly shared the milestone, highlighting the World Bank’s approval of a USD100 (E1. 8 bn) million loan.
This success is set to trigger additional approvals: USD 45 million (E828 141 043.50) from the African Development Bank and USD 50 million (E920 241 500)from the OPEC Fund, all geared toward settling long-standing government arrears and improving cash flow.
“This is not just about borrowing — it’s about breaking free from a cycle that has stifled economic growth for years,” said Rijkenberg. “For too long, suppliers have carried the burden of delayed payments. We are now charting a path to healthier cash flows, timely supplier payments, and a more competitive procurement system.”
The Minister shared that when he assumed office in 2018, arrears stood at a staggering E6 billion. Thanks to disciplined fiscal management, this has been reduced to about E2 billion. However, eliminating the remaining backlog required bold steps, hence the approach to international financial institutions.
A standout feature of these loans is their concessional nature — meaning they come with low interest rates and significant grant elements, making them far more affordable than commercial loans.
With this financial boost, Eswatini aims to close last year’s budget shortfall and cover gaps in the current fiscal year, creating a foundation for a vibrant, reliable public sector. Importantly, clearing arrears will allow government procurement to become more efficient, lower costs, and enable suppliers to confidently support national development.
“We anticipate that by July, Eswatini will no longer carry a stock of arrears. This is the first step in creating a virtuous cycle of on-time payments, fair pricing, and a stronger economy,” said Rijkenberg.
The achievement comes on the heels of productive spring meetings in the United States, where Eswatini’s delegation worked closely with international partners to secure these deals.
“This is great news, not just for government, but for every business, every supplier, and every citizen counting on a more prosperous future,” Rijkenberg concluded.
Indeed, Eswatini’s commitment to sound financial governance is paving the way for a brighter, more resilient economy — a true cause for national celebration.
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