The Eswatini government, through the Ministry of Finance, is seeking loans amounting to E3.79 billion to finance infrastructure and social development projects. Minister for Finance Neal Rijkenberg tabled three loan Bills in the House of Assembly, which outline the proposed borrowings. The Bills were published in the Eswatini Government Gazette Extraordinary on October 29, 2026.
The first loan Bill seeks to authorise the minister to raise E1.6 billion from Standard Bank of South Africa Limited and other lenders to finance a portfolio of infrastructure and social development projects. The loan will attract a margin of 4.95 per cent per annum and an arranging fee of 1.30 per cent of the total facility amount. The loan will be used to finance projects agreed upon between the government and the arranger, including those associated with the development of the Sugar Belt area.
The total public debt of Eswatini, as of September 29, 2026, stood at E43.04 billion, equivalent to 41.63 per cent of the gross domestic product (GDP). The debt stock comprises domestic debt of E22.82 billion and external debt of E20.22 billion. The proposed borrowings will add to the country's debt burden, which is already significant.
The second loan Bill reflects that the government intends to borrow approximately E1.05 billion from the Arab Bank for Economic Development in Africa (BADEA) to finance Phase 1B of the Mkhondvo-Ngwavuma Water Augmentation Programme. This project aims to augment the water supply in the country and support economic development.
The third loan Bill, which was not detailed in the initial reports, is also part of the government's efforts to secure funding for various projects. The proposed borrowings have financial obligations, including interest, arranging fees, and annual facility management charges that the government will be required to meet.
The loan proceeds will be received and accounted for in accordance with applicable public finance laws of Eswatini. The money will be paid into the Consolidated Fund or another public fund or account lawfully designated by the minister for the intended purpose. The proposed legislation also stipulates that the loan, together with interest, fees, costs, expenses, and other amounts payable, will be charged upon the Consolidated Fund.
The government's efforts to secure funding for infrastructure and social development projects are ongoing. The proposed borrowings are expected to support the country's economic development and improve the living standards of its citizens.
Key points
- The Eswatini government is seeking E3.79 billion in loans to finance infrastructure and social development projects.
- The proposed borrowings will add to the country's debt burden, which currently stands at E43.04 billion.
- The loans will be used to finance projects agreed upon between the government and the arranger, including those associated with the development of the Sugar Belt area.
