MBABANE – Minister for Finance Neal Rijkenberg has concluded Eswatini’s participation in the IMF/World Bank Annual Meetings in Washington DC, confirming a successful week that secured crucial funding pledges and elevated the country’s voice on the global financial stage.
The meetings, which brought together global finance ministers, central bank governors and development partners twice a year, saw Minister Rijkenberg engage in back-to-back meetings from Monday to Saturday, discussing loans, technical assistance and the country’s economic roadmap.
Minister Rijkenberg reported two particularly successful meetings with major development partners: In one he said the OPEC Fund, which has previously provided budget support, has committed to helping fund the critical Mkondvo/Ngwavuma project.
This project is set to bring irrigation to 30 000 hectares of land in the greater Lavumisa area, which has fantastic soils and will significantly benefit poor communities.
The commitment specifically targets Phase 2B funding for the Mkondvo/Ngwavuma project.
Crucially, the OPEC Fund will also provide grant support for a feasibility study to maximise the project’s hydroelectricity potential, utilising the high-to-low elevation water transfer.
He said the Fund also committed to bringing other Arab funders together to ensure a large enough funding group for the project.
The minister also held a very positive first meeting with the Saudi Fund, a key ally of Eswatini.
“Although the country has not yet taken a loan from them, the Fund expressed a strong interest in providing financial support,” the minister said.
A significant portion of the minister’s time was dedicated to strengthening relationships with the country’s key financial overseers:
He further said although Eswatini has fully repaid its debt to the IMF, the organisation remains critical for providing tools, analysis and measures such as the Article 4 Review.
“This review is one of the most scrutinised reports by entities that consider lending money to Eswatini, making a strong relationship vital,” he said.
The minister held a meeting with the credit rating agency Moody’s, which constantly assesses the country’s economic health.
He said the priority remains maintaining the B2 rating Eswatini received last year (an upgrade from B3) and working towards further improvement.
“The better our ratings are, the cheaper our funding becomes as a country, which we get from generally the private sector. So it is an important thing to try and focus on and to try and get right,” the Minister explained.
Minister Rijkenberg was uniquely positioned during the meetings, representing the African Union (AU) as the chair of the Specialised Technical Committee (STC) for Finance at the AU level.
Following the AU securing a permanent seat around the G20 table, the minister made interventions and speeches across four different sessions.
These meetings were described as ‘very Africa-focused,’ examining imbalances in the global financial architecture. Given the G20’s powerful influence over the structure of the World Bank and the IMF, the minister stressed the importance of having a strong AU voice to push for changes that will help Africa thrive.
The minister said the Eswatini team, which included officials from the Ministry of Finance and the Ministry of Economic Planning and Development, had a very successful week.
“We believe that we continue to be on the right track as a country to get ourselves into a high growth country is really where the main focus is,” he stated.
He acknowledged the country’s core problems of poverty and unemployment, affirming that the entire agenda is geared towards achieving high growth to create better jobs for EmaSwati, which will ultimately take people out of poverty.
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