‘Private sector key to Eswatini development partnerships’

EZULWINI – The private sector must be placed at the centre of Eswatini’s eco­nomic transformation if the country is to thrive in what global experts are increas­ingly calling the ‘post-aid era.’

This was said by United Nations Resident Coordinator George Wa­chira. Speaking during the launch of the second Eswatini Investment Conference at Royal Villas in Ezu­lwini yesterday, Wachira empha­sised that sustainable development will increasingly depend on strong partnerships anchored on private investment, domestic resource mo­bilisation and stronger institutions.

Delivering remarks under the theme ‘Re-Calibrating Development Partnerships at a Time of Change,’ Wachira said the global develop­ment landscape was undergoing a fundamental shift, forcing countries to rethink how they finance growth and development.

 “The private sector must be posi­tioned as a key development partner at the centre of economic activity, generating jobs, fostering innovation and boosting productivity,” Wachira said.

He added that a thriving private sector is critical for driving indus­trialisation, expanding trade, facil­itating infrastructure development through investments and public-pri­vate partnerships and ultimately expanding the tax base needed to finance public services.

Wachira explained that the con­cept of ‘development partners’ first emerged in the 1980s when interna­tional development discourse sought to move away from the traditional donor-recipient relationship towards more collaborative partnerships.

However, despite the change in terminology, official development assistance (ODA) remained a dom­inant feature of global development cooperation for decades.

Today, he said, the world has en­tered what many analysts describe as a post-ODA era, where the tradition­al model of aid is increasingly giving way to development financing driven by investments and market-based partnerships.

“As we meet today, we have en­tered what many have described as the post-ODA era, a period in which the traditional model of development funding and development aid has given way to development financing and investments as the drivers of nationally-led sustainable develop­ment,” Wachira said.

In this evolving environment, countries are increasingly expected to mobilise their own resources and attract investment to sustain eco­nomic growth.

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 … development partners providing catalytic funding

EZULWINI – United Na­tions Resident Coordinator George Wachira also high­lighted the importance of development partners providing catalytic funding that helps attract private investment.

He said development support is most impactful when it mobilises additional financing rather than replacing private capital.

“Development partner support is most powerful when it attracts private finance and multiplies the investment,” he said.

He explained that development partners can play a key role by pro­viding guarantees, blended finance facilities, risk-sharing instruments and technical assistance that unlock capital at scale.

Countries that have strengthened fiscal transparency and regulatory frameworks, such as Mauritius and Rwanda, have been able to secure cheaper financing and greater inves­tor confidence.

Another crucial area for develop­ment partnerships is strengthening institutions and systems that enable markets to function efficiently.

Wachira said improving regulatory frameworks, governance systems and data reliability can significantly enhance a country’s attractiveness to investors.

“Our collective focus should shift towards fixing and oiling the sys­tems and strengthening institutions that make markets work and attract investments,” he said.

He added that stronger institutions also help reduce corruption, curb illicit financial flows and lower the cost of capital for businesses.

Predictable policy frameworks and efficient service delivery, he said, are equally essential for building investor confidence.

Wachira further stressed the need for policy coherence across gov­ernment institutions.He said eco­nomic transformation requires a whole-of-government approach, where policies, strategies and leg­islation work together to create an enabling business environment.

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