MBABANE – The Government of Eswatini has secured a E1.9 billion ($100 million) loan from the World Bank to address long-standing delays in supplier payments and improve national cash flow management.
Minister of Finance Neal Rijkenberg disclosed the development during the Finance in Focus programme, stating the loan was finalised on 29 April 2025 following months of negotiations and the fulfilment of nine conditions set by the global lender.
The concessional loan is expected to provide urgent relief for local businesses affected by the government’s chronic arrears, which stood at over E6 billion in 2018. Rijkenberg said arrears have been reduced to around E1.5 billion but continue to hurt supplier relations and public service delivery.
“This is about restoring cash flow and ending the unhealthy practice where government delays payments, effectively borrowing from suppliers and weakening the economy,” he said.
The funding, which comes with lower interest rates compared to other loans, forms part of a broader fiscal reform plan. The African Development Bank (AfDB) is also expected to approve a $45 million loan, while an additional $50 million has been requested from the OPEC Fund for International Development.
Government plans to use the funds to pay down existing arrears, ensure timely supplier payments, and create a sustainable procurement system that can rebuild confidence among service providers.
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