Lobamba – Parliament has approved a US$26 million (about E455 million) loan guarantee for the financially troubled Eswatini Posts and Telecommunications Corporation (EPTC), clearing the way for the corporation to access the World Bank-backed facility.
The loan guarantee was approved under the International Bank for Reconstruction and Development (EPTC) Loan Guarantee Bill No. 13 of 2026, which was introduced by Minister of Finance Neal Rijkenberg. The facility will support the Digital Eswatini Project and address part of EPTC’s long-standing pension liabilities.
Chairperson of the Finance Committee, Lobamba Lomdzala MP Marwick Khumalo, who moved the Bill, said EPTC’s financial challenges had persisted for years and had reached a critical point. He said the corporation was under significant pressure from its pension obligations, making the financial intervention necessary.
The approval followed intense debate in the House, with MPs raising concerns about the risks associated with government guaranteeing the loan for a corporation that has experienced prolonged financial difficulties.
Nhlambeni MP Manzi Zwane questioned what would happen to taxpayers if EPTC failed to generate sufficient cash flow to repay the facility. He raised concerns that the liability could ultimately fall on the Consolidated Fund if the corporation defaulted on its obligations.
Lobamba MP Michael Masilela also questioned the continued allocation of government-backed funding to struggling state-owned entities, arguing that communities were still facing shortages of basic infrastructure.
Masilela questioned why government continued bringing loan Bills before Parliament while development needs, including roads and other infrastructure in constituencies, remained unresolved.
Sigwe MP David ‘Cruiser’ Ngcamphalala and other legislators also called for greater attention to the Microprojects programme, amid concerns over limited funding for development projects in constituencies.
MPs further questioned EPTC’s ability to remain commercially viable in a rapidly changing telecommunications industry.
Khumalo questioned how the corporation would generate sufficient returns when the communications sector had increasingly shifted towards mobile and digital services, raising questions about its ability to repay the facility and remain financially sustainable.
Rijkenberg, however, assured Parliament that the borrowing remained within prudent national debt management limits and would not destabilise government finances.
The Minister said the Digital Eswatini Project would contribute to improving digital connectivity and reducing the high cost of internet services.
The financial intervention is also expected to address EPTC’s substantial pension obligations, which have placed considerable pressure on the corporation’s finances over the years.
EPTC’s pension liabilities have been identified as one of the major pressures affecting its financial position, with the corporation having been required to meet substantial monthly obligations.
Another key issue during the debate was the future of EPTC employees, particularly following retrenchment notices that had previously been issued to some workers.
EPTC’s new management assured MPs that there were currently no plans to retrench employees as part of the corporation’s restructuring following the financial intervention.
The assurance helped address concerns among legislators over the impact of the corporation’s financial difficulties on its workforce.
However, questions remain over employees who had already received retrenchment notices and how the new management’s position will affect those processes.
With Parliament having approved the loan guarantee, government will now stand behind the US$26 million facility, meaning the Consolidated Fund could ultimately be exposed if EPTC fails to meet its obligations.
The approval places renewed focus on EPTC’s ability to use the facility to address its financial pressures, manage its pension obligations and strengthen its operations while implementing the Digital Eswatini Project.
The corporation will now face scrutiny over how the funds are utilised and whether the intervention can place EPTC on a more sustainable financial footing without exposing taxpayers to further liabilities.
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