Africa-Press – Eswatini. Eswatini is demonstrating strong local investor confidence, with public debt now at E36.76 billion, representing 37.8% of the country’s GDP, well within international sustainability thresholds.
The figures, released in the Ministry of Finance’s First Quarter Performance Report for the 2025/2026 financial year, highlight a healthy appetite for government bonds, contributing to a notable increase in domestic borrowing.
Local Market Drives Economic Participation
Domestic debt now accounts for E20.65 billion—21.23% of GDP—indicating growing engagement by local institutions in national development. This reflects a strong belief in the country’s economic trajectory and the government’s sound financial instruments.
The stock of government bonds rose from E11.96 billion in March to E12.93 billion by June 2025, showcasing investor enthusiasm for stable, long-term returns.
External Debt Slightly Decreases
In a positive development, Eswatini’s external debt decreased to E16.11 billion, down from E16.51 billion in the previous quarter. The decline is attributed to lower disbursements for capital projects and a stronger Lilangeni, reducing the overall cost of external obligations.
Investing in the Nation’s Future
Despite a slowdown in disbursements, Eswatini continues to channel resources into transformative capital projects. Key initiatives during the quarter include:
96 million for the Mkhondvo-Ngwavuma Water Augmentation Project Phase I
88 million for Manzini Region Water Supply and Sanitation
95 million towards Health System Strengthening
40 million for the Lower Usuthu Smallholder Irrigation Project II
87 million for the Network Reinforcement and Access Project
These projects not only improve service delivery but also uplift rural communities and create employment opportunities.
Debt Service Costs Decline
Another encouraging sign is the reduction in overall debt servicing, which fell from E2.08 billion in Q1 to E1.81 billion in Q2. Domestic debt service dropped significantly to E1.11 billion, while external service obligations remained stable at E698.89 million.
Lower interest payments, particularly on treasury bills and Central Bank advances, contributed to the reduced burden.
Outlook: Stability with Sustainable Growth
With public debt well below the international benchmark of 50% of GDP, Eswatini continues to maintain a prudent fiscal position. The Ministry of Finance has affirmed its commitment to responsible borrowing while encouraging local investment through bonds.
This trend not only safeguards fiscal stability but also promotes national ownership of development goals, laying the groundwork for a more prosperous and self-reliant Eswatini.
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