Eswatini Government to Pay Suppliers in 10 Days After MPs Approve E3.79BN Loans

The Eswatini government is set to pay suppliers and proceed with critical projects after Members of Parliament (MPs) gave Minister of Finance Neal Rijkenberg the go-ahead on budget support loans. The approved loans include the African Development Bank's Enhancing Economic Resilience and Competitiveness Programme (EERCP) Phase II Loan Bill, 2026, worth E1.14 billion, and the Standard Bank of South Africa Limited Loan Bill, Bill No. 20 of 2026, totalling E1.6 billion. A third loan, the Arab Bank for Economic Development in Africa (Mkhondvo-Ngwavuma Water Augmentation Programme) Loan Bill, 2026, Bill No. 19 of 2026, worth E1.05 billion, was also approved.

The loans aim to support the budget where there are funding gaps and pay suppliers and service providers. Ministry of Finance Portfolio Committee Chairperson and Lobamba Lomdzala MP Marwick Khumalo said the available funds had made it necessary for the government to secure loans to bridge those gaps. He added that the committee had asked the minister about Microprojects funds and was informed that the department would receive the money this month, along with payments for other suppliers.

According to Khumalo, the loan would be repaid in 30 semi-annual instalments with a five-year grace period as part of the concessionary loans. The government would finish paying off 14 loans within that period. Some MPs, including Ngudzeni MP Charles Ndlovu, expressed support for the loans, stating that they would help restore the government's image and support the nation.

However, not all MPs were satisfied with the process. Matsanjeni South MP Sabelo Ndlangamandla raised concerns about the same-day loan approvals, arguing that the practice is unconstitutional and violates members' rights. He claimed that MPs could not adopt money bills on the same day reports on them are tabled, citing the need for sufficient time to review the reports.

Despite these concerns, the Speaker of Parliament, Jabulani Mabuza, defended the decision, stating that Standing Orders allowed MPs to reconsider some procedures due to the urgency of the bill. He believed that he had been transparent in asking members to consider the loan bills because of their urgency.

MP Sabelo Ndlangamandla also called for an audit of loans, alleging that a previous loan intended to pay suppliers was not used for its intended purpose. He emphasized the need for transparency and accountability, stating that Parliament needed to know who would be paid through the current loan. However, Finance Committee Chairperson Marwick Khumalo disputed the claim, saying that they could not publish the list of suppliers but assured that all suppliers appearing on the list of those owed would be paid.

The approved loans are expected to revive many stalled projects and address service gaps in various sectors, including healthcare. Minister of Health Mduduzi Matsebula stated that the health sector had been affected by the lack of funds, with contractors leaving clinics unfinished and service providers remaining unpaid. The government aims to address these challenges with the approved loans and ensure that suppliers receive their payments within 10 days.

Key points

• The Eswatini government has approved three loans totalling E3.79 billion to address funding gaps and support critical projects.
• The loans aim to pay suppliers and service providers, with payments expected to resume within 10 days.
• Some MPs raised concerns about the same-day loan approvals and called for audits of previous loans.