Rijkenberg defends 40% to GDP public debt position

MBABANE – Minister for Finance Neal Rijkenberg has sought to allay fears surrounding Eswatini’s growing public debt.

Speaking during the Ministry’s Finance on Focus social media broadcast aired yesterday, he insisted that the current debt-to-GDP ratio of 40 per cent remains within manageable limits. Rijkenberg pushed back against widespread concerns over the country’s debt outlook, arguing that Eswatini’s fiscal position is not only sustainable but also attractive to investors.

“We are actually in a good space,” the minister said, adding that the country’s recent credit rating by global agency Moody’s was further affirmation of investor confidence in the economy.

“The rating allows us to access concessional funding and signals to lenders that Eswatini remains creditworthy,” he explained. “This gives us headroom to borrow for productive purposes and invest in growth-enhancing infrastructure,” said the minister.

Rijkenberg stated that the debate in Parliament regarding the country’s public debt was welcomed and it was actually a good debate to have where Members of Parliament enquired about such.

Rijkenberg also acknowledged that one of Eswatini’s longstanding vulnerabilities—its heavy reliance on revenues from the Southern African Customs Union (SACU)—remains a structural issue that must be addressed. He stressed that the volatility of SACU transfers makes it difficult to plan long-term, sustainable fiscal policy.

The minister alerted the country on the need to imagine an Eswatini without SACU receipts and the need for policy makers to begin planning for a possible transition.

Part of this transition planning would require unlocking higher and more inclusive growth through implementing structural reforms and targeted investments. 

According to the World Bank, one of the most promising pathways for doing so is through digital transformation. “We have to start looking at how we can run our country without fully depending on SACU receipts,” he said. “That means improving domestic revenue collection, expanding the tax base and unlocking private sector investment.”

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