By Delisa Thwala
Eswatini’s economy is growing at a pace that allows for increased government spending while keeping debt levels in check, according to Minister of Finance Neal Rijkenberg.
Presenting the national budget on Friday, Rijkenberg revealed that sustained economic performance has enabled an increase in government expenditure by E3.19 billion, marking a 10.9 percent rise.
Despite the increase in borrowing, the country’s economic expansion is outpacing its debt accumulation, stabilizing the debt-to-GDP ratio at 40.5 percent.
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“Our economy is growing faster than our debt, and as a result, we are seeing a stabilization in our debt-to-GDP ratio,” Rijkenberg stated. He emphasized that the government’s fiscal strategy remains focused on balancing growth with sustainable debt management.
Neal also announced that the economy is predicted to grow by 8.3 percent in 2025/26. This is against the solid growth
figures of 5 percent in 2023 and 4.8 percent in 2024. This will be a remarkable achievement and is the highest predicted GDP growth rate in the region, and one of the highest in the world.
“We have laid the foundations to ensure that this
growth is both sustainable and achievable. Growing our economy allows us to spend more on critical needs like health and education.
It allows us to safely and sustainably borrow more to improve our infrastructure and it enables us to assist
more vulnerable people in our communities,” he said.
In addition Neal said, If they don’t continue to grow the
economy, the country will not be able to create more jobs, provide more services or improve the quality of life.
Meanwhile Economist Mkhosi Thwala acknowledged the improved fiscal position but cautioned against complacency.
“While it is encouraging that the economy is expanding, we must remain mindful of the quality of this growth. Are we seeing broad-based development that benefits all sectors, or is this expansion concentrated in a few industries?” Thwala questioned.
He added that increased government spending must be directed toward critical areas such as infrastructure, education, and healthcare to ensure long-term economic stability.
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“If managed well, the current trajectory presents an opportunity to reduce poverty and unemployment. However, misallocation of resources or unchecked borrowing could reverse these gains,” he warned.
With debt levels stabilizing and expenditure increasing, the government appears optimistic about the country’s financial outlook.
However, economic analysts stress the need for prudent fiscal management to ensure that growth translates into tangible benefits for the people of Eswatini.
Thwala said as the budget implementation unfolds, all eyes will be on whether the increased spending fosters sustainable development or merely adds to the country’s fiscal obligations.
