Lobamba– Taxpayers could ultimately be left carrying a E455 million bill if the Eswatini Posts and Telecommunications Corporation (EPTC) fails to repay a World Bank loan that Government wants to guarantee.
The proposed US$26 million loan, equivalent to approximately E455 million, is at the centre of a heated debate in Parliament, with Members of Parliament questioning whether EPTC has the financial strength and business prospects to repay the money.
Minister of Finance Neal Rijkenberg tabled the International Bank for Reconstruction and Development (Eswatini Posts and Telecommunications Corporation) Loan Guarantee Bill No. 13 of 2026 in the House of Assembly, September 21, 2026, during its second reading.
The Bill seeks to authorise Government to guarantee EPTC’s repayment of the loan from the World Bank’s International Bank for Reconstruction and Development (IBRD).
The E455 million forms part of a wider World Bank financing package of approximately E1.14 billion, with three interrelated Bills seeking approval for financing to transform the country’s digital infrastructure and services.
But it was the EPTC loan that attracted some of the strongest questions from MPs, particularly over whether the corporation can repay the debt without Government having to step in.
Lobamba MP Michael Masilela questioned why Government should trust EPTC with another loan, referring to what he described as the corporation’s previous failures.
“How do you trust them, Minister?” Masilela asked.
He also alleged that there were corrupt elements within EPTC, although the allegation was not substantiated with evidence during the sitting.
MP Mazwi Zwane questioned the need for Government to guarantee the borrowing if EPTC was capable of repaying it.
“If EPTC has capacity to repay the loan, why does it not use its own funds to get the loan?” Zwane asked.
Mafutseni MP Sabelo Mtetwa also criticised what he described as a tendency by institutions to approach the Ministry of Finance whenever they need loans, effectively placing the borrowing burden on Government.
Lobamba Lomdzala MP Marwick Khumalo, who chaired the sitting and is Chairperson of the Finance Committee, questioned the long-term survival of EPTC.
“What is the survival of EPTC?” Khumalo asked, questioning whether the corporation remained relevant in a telecommunications market where consumers increasingly rely on mobile telephone services.
Rijkenberg said the E455 million loan would be used for EPTC’s financial stabilisation and its transition from a legacy defined-benefit pension scheme to a modern defined-contribution pension scheme.
He said the financing was also linked to EPTC’s role as a key enabler of the Digital Eswatini project.
Under the proposed arrangement, EPTC would repay the loan through semi-annual instalments beginning in June 2034 and continuing until December 2051.
The Minister said the Government guarantee would cover EPTC’s obligations up to a maximum of US$26 million.
He explained that the guarantee would initially be treated as a contingent liability, meaning it would not form part of Government’s direct debt unless EPTC failed to meet its obligations and the guarantee was called.
Deputy Speaker Madala Mhlanga supported the loans, particularly the EPTC financing, but questioned how many more loan Bills Government expected to bring before Parliament during the financial year.
He was particularly interested in loans intended to supplement the budget and enable Government to pay suppliers.
Ngudzeni MP Charles Ndlovu also supported the EPTC financing, citing the challenges facing the corporation.
However, Sigwe MP David “Cruiser” Ngcamphalala questioned the priorities, saying he would have preferred financing that could assist Microprojects, where projects had allegedly stalled because of a lack of funds.
The EPTC debate formed part of a broader US$65 million World Bank financing package negotiated by Government through the IBRD and International Development Association (IDA).
The second Bill, the Digital Eswatini IBRD Loan Bill No. 14 of 2026, seeks approval for a US$19.3 million sovereign loan.
The money is intended for broadband infrastructure expansion, regulatory reform, digitalisation of Government services and digital skills development.
The third Bill, the Digital Eswatini IDA Credit Bill No. 15 of 2026, seeks approval for a US$19.7 million concessional credit for digital public infrastructure.
This includes digital identity, electronic payments, interoperable data exchange and cybersecurity.
Rijkenberg said the broader Digital Eswatini project would extend fibre infrastructure to Tinkhundla centres, schools and health facilities, while expanding last-mile broadband connectivity.
The project also targets the digitalisation of Government services, including business registration, tax filing, health referrals, telemedicine, education enrolment and social-transfer verification.
It further targets the training of 200,000 citizens in digital skills.
Rijkenberg said approximately 70 per cent of emaSwati live in rural areas, where connectivity remains a challenge, while youth unemployment stands at approximately 46 per cent.
On public debt, the Minister said Government’s debt was currently close to 45 per cent of GDP and around E40 billion, although updated figures were still being obtained.
He said the March 2025 figures showed total public debt at E36.03 billion, equivalent to 40.33 per cent of GDP, excluding arrears and contingent liabilities.
The proposed US$19.3 million sovereign loan and US$19.7 million IDA credit would increase the debt stock to approximately E36.74 billion, or about 41.13 per cent of GDP, at full disbursement, according to figures presented by the Minister.
The E455 million EPTC guarantee would not immediately be included in the direct debt stock unless it was called.
Rijkenberg said 18 existing external loans were expected to be fully repaid within the next five years, arguing that Government’s existing obligations were progressively reducing.
He said the three Bills represented an investment in Eswatini’s digital future and would help improve public-service delivery and create pathways into the digital economy.
For MPs, however, the central question remained whether EPTC can repay the E455 million without the Government guarantee eventually being called — and taxpayers having to meet the obligation.
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