By Ncaba Ntshakala
Business Eswatini has acknowledged the 2025/26 National Budget presented by Minister of Finance Neal Rijkenberg, highlighting both commendable allocations and pressing concerns regarding implementation, economic growth, and fiscal discipline.
The organization recognizes the challenges of crafting a budget in a volatile global macroeconomic climate, where external pressures continue to shape economic policies and projections.
“The economic landscape locally, regionally, and internationally is peppered with too many variables with too few constants, thereby making it even harder to plan for the future,”
stated Business Eswatini, where it emphasized the need for government to maintain financial discipline while closely monitoring geopolitical risks.
The business community asserted that they remain hopeful that the budget will promote economic growth and address key national challenges, provided that efficient implementation and transparency are prioritized.
Business Eswatini welcomed the government’s investment in human capital, particularly the E702.35 million allocated for scholarships and the E194 million directed to the Orphaned and Vulnerable Children (OVC) Fund.
The decision to prioritize Science, Technology, Engineering, and Mathematics (STEM) education, along with the introduction of AS/A-Levels in selected schools, aligns with industry demands for a skilled workforce.
However, concerns remain about the effectiveness of the E4.2 billion recurrent budget in addressing systemic challenges at the University of Eswatini (UNESWA).
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“We urge clarity on how the E4.2 billion recurrent budget will address financial mismanagement and outdated academic programs, which threaten the quality of tertiary education,” the organization stated.
It stressed that the success of the proposed education transformation committee will depend on adequate resources and collaboration with key stakeholders.
The healthcare sector received a budget of E3.10 billion, with notable investments in infrastructure, including the construction of a Non-Communicable Diseases (NCD) facility in Manzini and the transformation of Central Medical Stores (CMS).
Business Eswatini acknowledged the importance of these projects but also highlighted long-standing issues such as persistent drug shortages and overreliance on external funding like PEPFAR.
“Our healthcare system stands as a clear indictment on the country’s abject failure to address what appears to be endemic and unbridled malfeasance and mismanagement,” it stated.
Business Eswatini called on the government to expedite the semi-autonomy process of CMS to ensure a more sustainable and efficient medicine supply chain.
Without bold action, the organization warned, healthcare challenges will continue to burden the country and its people.
In response to the E821.76 million allocated to the Ministry of Labour and Social Security, Business Eswatini commended the decision to construct trade testing workshops aimed at assessing apprentices and artisans in welding and plumbing.
However, the organization cautioned that youth unemployment remains at alarming levels, making it essential to accelerate job-linked apprenticeship programs.
It further urged the government to engage more closely with the private sector to align skills training with market demands.
“The needs of industry are fast-changing, whilst our national curriculum is patently too slow to adapt. This will result in educated unemployables who are frustrated,” Business Eswatini warned.
It called for urgent reforms to bridge the gap between education and employment, ensuring that young people graduate with skills that match industry requirements.
Moreover, food security and agricultural development remain critical issues, and Business Eswatini acknowledged the government’s investment in the Smallholder Agricultural Productivity and Market Enhancement Project (SAPEMP) and the Mpakeni Dam.
While these projects are essential for boosting food production, the organization noted that much of Eswatini’s arable land remains underutilized.
“We reiterate the call made by the Trade and Commerce Committee on reviewing our agricultural models to scale up in areas where we have a competitive advantage and diversify where returns are lower than viable alternatives,” it stated.
Business Eswatini also emphasized the need for faster execution of irrigation projects and stronger value-chain development to reduce reliance on imported food products.
It called for the adoption of climate-smart agricultural models to enhance productivity and resilience in the face of climate change.
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On revenue mobilization, Business Eswatini expressed concern over proposed increases in alcohol levies, warning that such hikes could negatively impact consumer spending and the competitiveness of local manufacturers, particularly small and medium enterprises (SMEs).
“While we applaud the minister’s restraint from introducing new taxes and efforts to broaden the tax base, we are concerned about proposed increases in alcohol levies.
Such hikes risk stifling consumer spending and undermining local manufacturers amid already high input costs,” the organization stated.
It urged the government to take a balanced approach to sin taxes, ensuring that taxation policies do not inadvertently harm local businesses while benefiting importers.
Regarding the financial sector, Business Eswatini observed that rising banking sector liquidity could indicate underutilized lending capacity.
While risk management remains essential, the organization cautioned against overly restrictive lending practices that could hinder private-sector growth.
It called for enhanced collaboration between financial institutions, regulators, and businesses to develop innovative financing solutions, particularly for SMEs and large-scale investment projects.
Business Eswatini concluded by making emphasis on its commitment to conducting a more detailed analysis of the budget’s implications for private-sector growth, employment, and overall economic stability.
The organization emphasized the need for robust public-private partnerships to ensure that the government’s pro-growth budget objectives translate into tangible economic benefits.
While it recognized that the 2025/26 budget lays a foundation for transformative growth, Business Eswatini highlighted that its success will depend on efficient execution, fiscal transparency, and meaningful engagement with the business community.
“We applaud the Honourable Minister for having succeeded in coming up with a budget that is sensible by the standards of many pundits,” it stated.
However, the organization expressed that fiscal discipline and good stewardship of national resources must remain at the core of government policy to navigate the current economic uncertainties effectively.
