MBABANE – Business Eswatini (BE) is pushing for greater private-sector participation in Eswatini’s sovereign credit rating process.
The apex employer-based organisation warned that the country’s creditworthiness has direct implications for businesses, investment and the cost of capital.
The organisation recently engaged experts from the United Nations Development Programme’s (UNDP) Africa Credit Ratings Initiative (ACRI) as part of an assessment of Eswatini’s institutional preparedness for sovereign credit rating engagements.
The engagement, held on August 25, 2026, comes at a critical time for Eswatini as government grapples with rising public debt and seeks to maintain investor confidence while strengthening fiscal consolidation.
For BE, sovereign credit ratings should not be viewed solely as assessments of government’s ability to repay its debt.
The organisation believes that the ratings have economy-wide consequences, influencing investor perceptions, the availability of finance and the cost of capital for businesses.
BE Chief Executive Officer Nathi Dlamini said the organisation recognised the close relationship between the country’s fiscal position and the performance of the private sector.
“Business Eswatini is keenly aware that the fiscal health of the nation is intrinsically linked to the health of our businesses,” Dlamini said.
The organisation said the meeting also highlighted a gap in the participation of businesses in sovereign credit discussions, despite the potential impact of ratings decisions on the operating environment.
Sovereign credit ratings are issued by international rating agencies after assessing a country’s economic, fiscal and institutional conditions. A country’s rating can influence how international investors perceive its risk and, ultimately, the terms on which government and businesses can access funding.
For Eswatini businesses, a deterioration in the sovereign risk profile could translate into higher borrowing costs, reduced access to international capital and weaker investor appetite.
BE, therefore, believes that the private sector needs a better understanding of the technical issues underpinning sovereign ratings so that it can contribute meaningfully to national economic policy discussions.
The engagement with UNDP ACRI identified capacity constraints within the private sector as one of the factors limiting meaningful participation in technically complex discussions around public finances and sovereign credit.
BE said closing this gap would be important in ensuring that businesses are able to engage government and other stakeholders on issues that affect the country’s economic trajectory.
The ACRI team shared preliminary observations from its assessment and provided an overview of the sovereign credit rating process, including the factors considered by agencies such as Moody’s Ratings.
Among the issues considered by rating agencies are the outlook for public finances and debt, fiscal risks, government arrears, revenue performance and the effectiveness of institutional coordination.
These considerations have become particularly significant for Eswatini amid concerns over the trajectory of public debt.
Minister for Finance Neal Rijkenberg recently cautioned that continued increases in government borrowing could put pressure on the country’s credit outlook.
He noted that public debt had risen from about 40 per cent to 45 per cent of gross domestic product (GDP), with the possibility of reaching 50 per cent.
Eswatini is currently rated B2 by Moody’s Ratings with a stable outlook. The rating remains within the highly speculative category, highlighting the importance of continued fiscal management and efforts to strengthen the country’s economic fundamentals.
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