The World Bank has approved a Development Policy Loan (DPL) to assist the Kingdom of Eswatini in its efforts to strengthen fiscal governance, promote private sector development, and enhance energy security and climate resilience. This initiative marks the first in a planned series of two operations designed to address significant barriers facing Eswatini's economic growth and poverty alleviation strategies.
Key reforms are anticipated to contribute towards job creation, poverty reduction, and improved social outcomes. These efforts align with the nation’s strategic priorities, as emphasized by Satu Kahkonen, World Bank Division Director for Eswatini, who stated, “The 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.”
The $100 million loan supports Eswatini’s reform agenda as outlined in its National Development Plan (2023–2028) and Programme of Action 2024. The initiative seeks to mobilize private capital and increase energy access, building on the momentum of past efforts and extensive collaboration with the World Bank.
Honourable Neal Rijkenberg, Eswatini's Minister of Finance, expressed the importance of this loan, commenting: “This operation comes at a critical time, as the Government of Eswatini implements a policy agenda inspired by the Sibaya People's Parliament, focused on economic growth, job creation, 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.”
The DPL will support reforms across three primary areas:
1. Strengthening fiscal and public financial management by increasing debt transparency and management, reducing public expenditure arrears, and improving revenue handling from the Southern African Customs Union.
2. Enhancing private sector competitiveness by streamlining the business environment, reducing market entry barriers, promoting digital payment systems, and expanding local firms' access to export markets.
3. Improving energy security and climate resilience by advancing domestic renewable energy development, encouraging private sector involvement in electricity, and increasing infrastructure resilience against climate-related shocks.