Eswatini is grappling with the financial, infrastructural, and environmental demands of growing towns, raising questions about the sustainability of urban development. As urban populations expand, local authorities must provide better roads, reliable water and sanitation, decent housing, and efficient municipal services. However, they often face limitations in their existing revenue bases. The 2026 Eswatini Urban Forum aims to create a platform for rethinking how the country's urban centers are financed, planned, and managed.
The forum, first undertaken in 2024, will bring together local and international financiers, development partners, government representatives, and urban development practitioners. Minister for Housing and Urban Development Appolo Maphalala stated that the forum will focus on financing smart solutions, resilient infrastructure, and housing for all. Discussions will revolve around finding additional sources of financing for urban local authorities, curbing informal settlements, and improving service delivery within the urban space.
One of the pressing issues facing urban local authorities is generating sufficient revenue to finance infrastructure and improve service delivery. Heavy reliance on property rates as a primary source of municipal income presents limitations. Maphalala identified municipal bonds as a possible financing mechanism, allowing urban local authorities to issue bonds to raise funds for development. Public-private partnerships (PPPs) also offer municipalities an opportunity to unlock the development potential of assets such as vacant land.
The Build, Operate and Transfer (BOT) model is one mechanism through which PPPs could be implemented. However, diversifying municipal financing requires more than identifying alternative funding instruments. It also calls for a supportive legislative and policy environment, including political commitment towards implementing Intergovernmental Fiscal Transfers as provided for under the Constitution. This will enable municipalities to have a stronger financial foundation, combining their own revenue-generation capacity with appropriate fiscal support and private sector participation.
Financial sustainability must be accompanied by improvements in how municipalities operate and deliver services. Digital transformation and smart-city technologies present opportunities to improve municipal efficiency, strengthen transparency, and make services more accessible. The ministry encourages all urban local authorities to adopt smart-city principles, although implementation will differ according to the size and capacity of individual municipalities.
Some municipalities, such as the Municipal Council of Mbabane and Matsapha, have introduced smart-city principles, while others are encouraged to follow suit. Maphalala emphasized that smart-city development should not be understood as a fixed concept but rather as a collection of solutions that can be adapted to local circumstances. The ministry is coordinating efforts to equip urban local authorities with smart and innovative solutions that can improve service delivery and sustainable urban planning.
The hosting of the Urban Forum aims to translate international initiatives and experiences into practical interventions at the local level. The challenge will be ensuring that these technologies extend beyond isolated municipal projects and become part of a broader transformation of local government operations. Housing and access to secure land tenure remain crucial to sustainable urban development, particularly in addressing the growing challenge of informal settlements and building climate resilience.
Key points
- The 2026 Eswatini Urban Forum seeks to create a platform for rethinking urban development financing.
- Municipalities are encouraged to adopt smart-city principles to improve service delivery and sustainable urban planning.
- Diversifying municipal financing requires a supportive legislative and policy environment.
