The Ministry of Finance has pledged to clear all outstanding supplier payments in the coming weeks, helping ease cash flow problems affecting government operations.
Finance Minister Neal Rijkenberg made the announcement in a video update shared on Tuesday, 24 June 2025. He explained that a $100 million loan from the World Bank, recently gazetted, will provide the necessary funds to settle outstanding debts to suppliers across Eswatini.
“This loan will help us pay all suppliers, and we expect payments to happen this week or early next week once the money arrives,” Rijkenberg said. He added that the government hopes to maintain steady cash flow and make timely payments going forward.
Rijkenberg also addressed the ongoing health crisis, where drug shortages continue to disrupt hospital services across the country. Despite medicines being purchased and arriving at the central medical stores, they often fail to reach clinics and patients on time.
He said the government has provided financial support and emergency procurement allowances allowing the Ministry of Health to buy medicines directly from wholesalers when needed. Yet, a breakdown remains in the supply chain between central stores and local dispensaries.
To resolve this, the government plans to privatize the Central Medical Stores (CMS) and convert it into a parastatal entity. This move aims to improve accountability and control over medicine distribution from central stores to regional facilities, hospitals, and clinics.
Under the new system, CMS will remain responsible for the medicines throughout the supply chain until they are dispensed to patients. Advanced control systems will track drug inventory in real time to prevent losses or delays.
Payments from government to CMS will be conditional on proof that medicines have been delivered and used by patients at health facilities, with documentation of prescriptions provided by doctors.
Legislation to enable this change has been drafted with support from the Global Fund and is currently awaiting Cabinet approval. The Ministry hopes to complete the transition within six months.
Rijkenberg expressed confidence that this restructuring will bring much-needed transparency and efficiency to the medical supply system, effectively ending the persistent drug shortages.
He reassured citizens that the government budget already allocates sufficient funds to purchase necessary medicines, and it is the current distribution and control systems that require reform.
“This is the right solution to our health crisis,” the Minister said.
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