Latest news with #GovernmentofEswatini
Zawya
30-04-2025
- Business
- Zawya
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.
Zawya
19-02-2025
- Business
- Zawya
A New Public Finance Review Aims to Help Eswatini Improve Fiscal Policy for Better Development Outcomes
The World Bank and the Government of Eswatini launched a new review highlighting ways to make fiscal policy in Eswatini more efficient and effective. The Eswatini Public Finance Review (PFR): Leveraging Fiscal Adjustment for Better Development Outcomes, is the first review for Eswatini since 1996. The review aims to support the country in enhancing the efficiency and effectiveness of public spending and revenue mobilization to drive sustainable and inclusive economic growth. It provides a comprehensive analysis of Eswatini's fiscal policy and its role in addressing constraints to economic growth and livelihoods. The review acknowledges Eswatini's strong post-pandemic recovery, which averaged 5.3% growth from 2021 to 2023, while underscoring the urgent need for reforms to achieve broad-based economic progress. 'The Government has made significant progress since 2019 in reducing the fiscal deficit and implementing fiscal adjustment measures. Notwithstanding, stepped-up efforts are needed to implement some of the critical reforms highlighted in the Public Finance Review' says Eswatini's Minister of Finance, Honorable Neal Rijkenberg. The review highlights Eswatini's need for prudent fiscal management and identifies key pathways for achieving its development objectives. It emphasizes the need to make fiscal policy an instrument for macroeconomic stability and external competitiveness. Enhanced revenue mobilization through improved tax administration and streamlined procedures is crucial, along with strengthened public financial management for maximizing value-for-money. Improving public investment management while integrating climate considerations is essential to maximize the impact of public spending on economic growth and development, The review stresses the importance of directly tackling challenges in the health sector – a sector critical for human development and improving health outcomes. Eswatini can enhance economic efficiency and social equity in several areas. First, it can work to contain expansionary fiscal policy, eliminating expenditure arrears, and addressing the wage premium between the public and private sectors to promote macroeconomic stability and external competitiveness. Second, it can make improvements in tax administration such as creating a specialized unit for high-net-worth individuals, streamlining procedures, and maximizing electronic tax filing to boost revenue by 1.6 to 3.3% of GDP. Third, public financial management could be strengthened by enhancing budget preparation, improving budget execution and commitment controls, reforming state-owned enterprises, and streamlining public procurement, especially by implementing electronic procurement solutions. In the health sector, addressing inefficiencies could be achieved through better expenditure management, improved supply chains, and enhanced healthcare access and quality, particularly in primary care. 'Eswatini's future hinges on its ability to leverage fiscal policy strategically. By implementing the reforms outlined in the Public Finance Review, Eswatini could create a more competitive and resilient economy, fostering inclusive growth and improving the lives of all Emaswati. The World Bank is committed to providing technical assistance and financial support in guiding the country towards fiscal sustainability and inclusive growth," says Satu Kahkonen, World Bank Country Director for Eswatini. Distributed by APO Group on behalf of The World Bank Group.
