Africa-Press – Eswatini. Members of Parliament (MPs) have passed a Loan Bill for E5.2 billion to construct a Strategic Oil Reserve.
The reserve will be built in Phuzumoya, KaMkhweli Chiefdom, under Siphofaneni Inkhundla in the Lubombo Region. The Loan Bill was passed on May 27, 2025, in the House of Assembly, after a robust three-hour debate involving 48 MPs making submissions. The Bill authorises Minister of Finance Neal Rijkenberg to secure financing of up to US$300 million (about E5.2 billion) from the Export-Import Bank of the Republic of China (Taiwan).
Lobamba Lomdzala MP Marwick Khumalo, as chairperson of the Ministry of Finance Portfolio Committee in the House of Assembly (Finance Committee), motivated MPs to adopt the report on the Bill, seconded by Mafutseni MP Sabelo Mtsetfwa.
The report outlined the reasons the Finance Committee deemed the Loan Bill essential. In motivating his colleagues, Khumalo explained that the Bill would enable the country to store 83.6 million litres of fuel. Currently, Eswatini can store only 3.6 million litres of fuel, which would last just two days.
Khumalo emphasized that this falls short of the legal requirement for fuel providers to maintain storage for 14 days during crises. He noted that, in emergencies, the Strategic Oil Reserve could last up to 60 days, ensuring fuel security even if imports were disrupted.
He added that the loan would be repaid over 20 years, following a five-year grace period, with 40 semi-annual instalments. The Eswatini National Petroleum Company (ENPC) will be responsible for repaying the loan, while the Government will act as a guarantor. The project belongs to ENPC, which is considered capable of repaying the loan, as it reportedly raised E1 billion last year for the Strategic Oil Reserve.
Khumalo shared that although most MPs were initially opposed to the Bill, nearly everyone supported it after the committee discussions. He described it as the largest loan Eswatini has ever secured, underscoring the significance of the project.
He also revealed that a Taiwanese company will implement the project and has committed to working within the E5.2 billion budget. Additionally, they negotiated local participation in the project to ensure Emaswati benefit from it. The construction phase is expected to create between 200 and 800 jobs.
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