MBABANE – Government is seeking Parliament’s approval to borrow E12.7 billion for national development projects ranging from road upgrades and electricity expansion to settling outstanding supplier payments.
Finance Minister Neal Rijkenberg revealed the details during the latest #FinanceInFocus programme, where he explained that four major Loan Bills are already before Parliament, with more expected in the coming weeks. The funds, he said, will be sourced from several international institutions to support the country’s infrastructure and economic recovery plans.
The largest of the proposed loans – US$300 million (approximately E5.2 billion) – is expected to come from the Export-Import Bank of Taiwan for the construction of a Strategic Oil Reserve Facility. This is aimed at strengthening Eswatini’s fuel security.
A further US$140.6 million (around E2.5 billion) loan is being arranged with the African Development Bank to fund the first phase of the Eswatini Road Infrastructure Improvement Programme. This will include the tarring of the 105km Siphofaneni-Siphambanweni road, which is projected to create at least 1,500 jobs.
The government is also seeking US$100 million (about E1.8 billion) from the International Bank for Reconstruction and Development to support fiscal management and competitiveness reforms, including easing pressure on the national budget and settling debt owed to suppliers.
Two additional Loan Bills, collectively worth €85.3 million (roughly E1.5 billion), aim to fast-track access to clean and sustainable electricity. The International Development Association will provide up to £37 million (about E752 million), while the International Bank for Reconstruction and Development will lend €48.3 million (around E982 million) under the same energy access programme.
An extra US$95 million (around E1.7 billion) in planned loans will specifically go toward paying off arrears owed to government suppliers.
According to Rijkenberg, the country’s debt-to-GDP ratio remains under control. He said the borrowed funds are expected to stimulate economic activity and support long-term development goals without compromising fiscal stability.
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