SENSIBLE YET CAUTIOUS OUTLOOK - BE ON BUDGET

MBABANE -  The 2025/26 National Budget, presented by the Minister for Finance, Neal Rijkenberg, has drawn measured praise from Business Eswatini (BE), which recognises the difficulty of crafting a financial roadmap amid volatile global economic conditions. While acknowledging government’s commitment to fiscal discipline and growth-oriented expenditure, BE has also raised concerns over systemic challenges that could undermine the budget’s intended impact. In its preliminary response, the country’s apex private-sector organisation highlighted key allocations and policy directions that affect business and economic sustainability.

Success

BE emphasised that while some of the budget’s provisions set the stage for growth, their success will ultimately hinge on execution, transparency and effective public-private collaboration. Against a backdrop of economic uncertainty—both locally and internationally—government has managed to put together a budget that maintains fiscal discipline while prioritising key developmental areas. However, BE cautions that mere budgetary allocations, however well-intended, will not solve deep-seated structural problems unless matched with sound execution and governance.

One of BE’s primary recommendations is that government should remain focused on the fundamentals: Ensuring national resources are managed prudently while closely monitoring global economic shifts. The current geopolitical landscape remains unpredictable, and any financial missteps could have far-reaching consequences for Eswatini’s already fragile economy. One of the more welcome aspects of the budget is government’s prioritisation of education. The E702.35 million allocation for scholarships and the E194 million for the Orphaned and Vulnerable Children (OVCs) Fund signal a commitment to fostering human capital development.

BE lauds the focus on STEM (Science, Technology, Engineering and Mathematics) education and the planned introduction of AS/A-Levels in selected schools, which aligns with industry needs for skilled labour. However, BE stresses the importance of addressing systemic inefficiencies within tertiary education, particularly at the University of Eswatini (UNESWA). The institution’s financial challenges and outdated academic programmes continue to threaten the quality of higher education in the country. The E4.2 billion recurrent budget must be effectively utilised to address these concerns if Eswatini is to build a workforce capable of driving economic transformation.

Furthermore, BE underscores that the success of the proposed education transformation committee depends on adequate resourcing and meaningful stakeholder engagement. Without decisive intervention, Eswatini risks producing graduates who struggle to find employment in an ever-evolving job market. The Ministry of Health has received a substantial E3.10 billion allocation, a reflection of the sector’s critical role in national development. The planned investments in healthcare infrastructure, including a specialised non-communicable diseases (NCDs) facility in Manzini and the transformation of the Central Medical Stores (CMS), are commendable.

External

However, BE warns that these initiatives will be meaningless if systemic inefficiencies—particularly drug shortages—are not urgently addressed. The country’s heavy reliance on external funding, such as PEPFAR, highlights the fragility of the healthcare system. BE is calling for expedited efforts to grant CMS semi-autonomy to ensure the sustainable supply of essential medicines.“Our healthcare system remains an indictment of government’s failure to address long-standing issues of mismanagement,” BE stated in its response. The private sector body urged policymakers to take bold steps to confront corruption and inefficiencies, warning that failure to do so would continue to jeopardise the well-being of the nation.

With youth unemployment at crisis levels, BE welcomes the E821.76 million allocation to the Ministry of Labour and Social Security. The construction of trade testing workshops is seen as a positive step towards improving workforce productivity. However, BE stresses the urgent need for job-linked apprenticeship programmes that integrate private-sector participation. “The needs of industry are evolving rapidly, yet our education and training systems remain slow to adapt,” BE cautioned. Without proactive curriculum reforms and stronger industry linkages, Eswatini risks producing graduates who are ill-equipped for available job opportunities.

BE urges government to accelerate the implementation of targeted employment strategies that foster entrepreneurship, skills development and innovation. The economy cannot afford a growing population of ‘educated unemployables’ who face frustration due to mismatched skills. Government has placed renewed emphasis on food security, with the Smallholder Agricultural Productivity Enhancement and Marketing Project (SAPEMP) and Mpakeni Dam investments forming a central part of its strategy.

These projects are critical for increasing crop yields and reducing Eswatini’s dependency on food imports. However, BE points out that the country’s vast tracts of unused arable land present a missed opportunity. More funding should be directed towards smallholder farmer support, mechanisation and irrigation projects. Additionally, BE supports calls by the Trade and Commerce Committee for a review of agricultural models to focus on areas where Eswatini has a competitive advantage.

Execution

Climate-smart agricultural practices must be adopted as a priority, given the increasing threats posed by climate change. “We need faster execution of irrigation projects and a robust value-chain strategy to ensure that agriculture becomes a sustainable pillar of our economy,” BE asserted.

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