E1.66 billion in Govt coffers to ease cash flow constraints

By Delisa Magagula

His Majesty King Mswati III’s Government is set to receive a significant boost to its finances this week.

There is an expected arrival of a US$47.5 million loan from the African Development Bank, equivalent to approximately E807 million. In addition, a US$50 million loan from the OPEC Fund, or about E850 million, is expected to follow shortly, bringing total new funding to roughly E1.66 billion.

Minister for Finance Neal Rijkenberg confirmed on Monday that the funds have cleared all required approvals, including parliamentary endorsement, and are now ready to be deposited into government accounts.

“The loans are expected to relieve pressure on government cash flow and allow for the full settlement of outstanding payments to suppliers. The African Development Bank loan is part of a broader programme aimed at supporting economic resilience, service delivery, and sustainable growth,” said the Minister during his popular Finance in Focus segment.

He further said, OPEC Fund facility complements this by providing additional resources at a time when seasonal revenue fluctuations have put strain on government finances.

Minister Rijkenberg emphasised that while the loans provide immediate liquidity, they are denominated in U.S. dollars, meaning future repayments will be made in foreign currency.

He said this exposes the government to exchange rate considerations, a weaker Emalangeni could increase the local cost of servicing the debt, while a stronger Emalangeni may reduce it.

“The arrival of these loans is a key step in stabilising Eswatini’s public finances. With funds now entering government coffers, suppliers and contractors who have experienced payment delays can expect their invoices to be cleared in full in the coming days,” assured the Minister.

According to the Ministry of Finance, these loans are part of a strategy to ensure fiscal stability, maintain continuity in government operations, and avoid disruption of essential services.

Access to external financing provides a predictable source of funds that can help manage seasonal shortfalls in revenue collection.

Noteworthy, the government plans to manage the loans prudently to balance immediate financial needs with long-term debt sustainability.

Rijkenberg said careful monitoring of exchange rates and repayment schedules will be key to ensuring that obligations in U.S. dollars do not place excessive strain on the national budget.

“The African Development Bank funds expected to land this week and the OPEC Fund facility soon afterwards, we are positioned to restore normal cash flow, pay suppliers, and strengthen the overall financial position of the government,” said the Minister.

He further said, the combined effect of these loans represents one of the largest inflows of external financing into Eswatini in recent months and reflects coordinated efforts between the government, international financial institutions, and Parliament to manage public finances responsibly.