The World Bank has approved a $100 million development policy loan to support Eswatini’s economic reform agenda, with a focus on strengthening fiscal governance, boosting private sector development and enhancing energy security and climate resilience.
The funding, approved by the World Bank board of directors on Wednesday, marks the first in a two-part programmatic series aimed at addressing structural challenges that have constrained the southern African country’s economic growth and poverty reduction efforts.
World Bank Division Director for Eswatini, Satu Kahkonen said the loan supports reforms aligned with Eswatini’s National Development Plan (2023–2028) and Programme of Action 2024.
“This operation is aligned with key national priorities such as youth employment, digital transformation, and the transition to sustainable energy, all of which are essential drivers of inclusive growth,” Kahkonen said.
The reforms target three key areas: improving fiscal and public financial management, enhancing private sector competitiveness, and accelerating renewable energy development while building climate resilience.
Measures include increasing debt transparency, streamlining public expenditure, promoting digital payment systems and expanding access to export markets for local firms.
The operation builds on the momentum of a previous World Bank policy financing series (2021–2022), coupled with ongoing technical support and analytical work.
Finance Minister Neal Rijkenberg welcomed the support, noting that it aligns with the government’s policy agenda shaped by the Sibaya People’s Parliament and aimed at fostering job creation, economic growth and improved service delivery.
“We welcome the World Bank’s support as we work to uplift the livelihoods of EmaSwati and deliver on our development objectives,” he said.
The policy actions are also expected to help Eswatini mobilise private capital and accelerate energy access, while reinforcing the country’s resilience to climate-related shocks.
JN/APA