Eswatini: World Bank Supports Fiscal and Private Sector Reforms for Resilient Growth
The World Bank Board of Executive Directors approved a Development Policy Loan (DPL) operation to support the Kingdom of Eswatini's efforts to strengthen fiscal governance, foster private sector development, and enhance energy security and climate resilience. This is the first in a programmatic series of two operations.
Eswatini faces critical constraints in achieving broad-based economic growth, efficient public resource allocation, and poverty reduction. The reforms supported under this operation are expected to contribute to job creation, poverty alleviation and better social outcomes over the medium to long term.
'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,' said Satu Kahkonen, World Bank Division Director for Eswatini.
This $100 million policy loan supports Eswatini's reform agenda as outlined in the country's National Development Plan (2023–2028) and Programme of Action 2024. The policy actions supported by the loan will assist Eswatini to mobilize private capital and accelerate energy access. The operation builds on the momentum of the previous DPF series (2021–2022), as well as extensive technical assistance and analytical work conducted by the World Bank in Eswatini.
'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,' said Honourable Neal Rijkenberg, Minister of Finance of the Kingdom of Eswatini. 'We welcome the World Bank's support as we work to uplift the livelihoods of EmaSwati and deliver on our development objectives.'
The DPL supports reforms across three key pillars:
(i) Strengthening fiscal and public financial management by enhancing debt transparency and management, reducing the accumulation of public expenditure arrears, and improving the handling of volatile revenues from the Southern African Customs Union (SACU);
(ii) Enhancing private sector competitiveness by improving the business environment, reducing barriers to market entry, promoting digital payment systems, and increasing access to export markets for local firms;
(iii) Improving energy security and climate resilience by accelerating domestic renewable energy development, promoting private sector participation in the electricity market, and enhancing the resilience of infrastructure and vulnerable households to climate-related shocks.
Distributed by APO Group on behalf of The World Bank Group.
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