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MBABANE – The African Development Bank (AfDB) has commended Eswatini for making significant strides in strengthening economic governance, public financial management and private sector competitiveness.
The bank said the reforms are laying the foundation for a more resilient, inclusive and environmentally sustainable economy.
In its latest implementation progress and results report for the enhancing economic resilience and competitiveness programme (Phase I), the continental lender rated progress towards the programme’s development objectives as satisfactory, highlighting a series of reforms that have improved fiscal management, strengthened investor confidence and positioned the country for long-term economic growth.
The programme, valued at US$47.5 million (about E41.6 million), was approved in June 2025 and has already been fully disbursed, with the AfDB classifying it as a non-potentially problematic project, reflecting confidence in its implementation.
According to the report, the kingdom has made notable progress in enhancing reforms aimed at improving economic governance, public financial management and private sector competitiveness to support a resilient, inclusive and green economic recovery.
The AfDB noted that government authorities had undertaken decisive reforms to strengthen public financial management systems, describing these measures as critical to promoting fiscal discipline and macroeconomic stability.
Among the landmark reforms highlighted was the establishment of the Revenue Stabilisation Fund (RSF) in 2023, created to cushion the country against fluctuations in Southern African Customs Union (SACU) revenues, which have historically been one of government’s largest but most volatile sources of income.
The report noted that the Revenue Stabilisation Fund regulations had already been established and the fund capitalised, representing one of the programme’s major completed outputs.
National investment policy coming
MBABANE – The report also revealed that Cabinet has approved the National Investment Policy, which is expected to be officially launched during the country’s Second Annual Investment Conference scheduled for July 2026.
Government has further established the country’s first-ever National Competitiveness Council, bringing together public and private sector leaders to improve the business environment and drive economic reforms.
Meanwhile, regional trade integration has also gained momentum.
The AfDB reported that Eswatini has approved its African Continental Free Trade Area (AfCFTA) Implementation Strategy 2024-2028, while a Trade Facilitation Committee has been established with World Bank support.
The bank noted that the country continues to benefit from the extension of African Growth and Opportunity Act (AGOA) preferences until December 2026, while aligning industrial policies with regional trade frameworks.
In the fight against financial crime, the AfDB highlighted notable progress in addressing anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies identified during Eswatini’s 2022 Mutual Evaluation Report.
According to the report, technical compliance has improved significantly from 14 out of 40 areas to 28 out of 40, far exceeding the programme’s target of improvements in five areas.
The report further stated that Eswatini expects to join the Egmont Group during July 2026 while preparations are underway for the country’s next Mutual Evaluation scheduled for 2029.
One-Stop Shop boosts competitiveness
MBABANE – One of the most significant findings relates to the country’s competitiveness.
The AfDB said Eswatini has strengthened its investment climate through the establishment of a Business One-Stop Shop (BOSS) for investors, bringing together multiple licensing agencies under one roof.
Currently, at least five licensing services are available through the facility, including permits, visas, trading licences and VAT registration.
The bank said this reform has contributed to Eswatini being ranked among the top 10 countries in the World Bank Business Ready Index, an achievement it described as evidence of improving ease of doing business.
The one-stop shop was launched by the Prime Minister Russell Mmiso Dlamini last year May.
“This is a milestone in our commitment to expediting business processes,” the prime minister said.
“The launch of BOSS is a direct response to His Majesty’s ‘nkwe’ call made during Sibaya and reiterated during the State Opening of Parliament—calling for a centralised service to better serve investors.”
12 out of 17 IFMIS modules completed
MBABANE – Another key reform recognised by the bank is the ongoing implementation of the Integrated Financial Management Information System (IFMIS) within the Ministry of Finance.
According to the AfDB, Eswatini has already completed 12 of the planned 17 IFMIS modules, with implementation expected to continue until 2028.
IFMIS is a computerised system used by governments to automate, track and manage public sector budgeting, accounting and financial reporting.
It centralises financial data to improve fiscal transparency, operational efficiency and resource allocation.
The bank observed that government had also developed an IFMIS implementation roadmap with support from the Government of Rwanda and had begun transitioning Treasury operations towards the International Public Sector Accounting Standards (IPSAS) accrual accounting framework, a move expected to improve transparency, accountability and financial reporting across government institutions.
When launching the IFMIS, the Minister for Finance, Neal Rijkenberg, said the system was a game-changer in improving public expenditure management and restoring confidence among citizens and the business community.
Rijkenberg emphasised that IFMIS was not just an ICT project; it was a national reform that would help us reset the social contract between government and citizens.
“When taxpayers fulfil their obligations, they expect efficient and transparent use of public funds and IFMIS will ensure that happens,” he said.
The report further commended Cabinet’s approval of Public Investment Management Guidelines, saying these would improve the planning, appraisal and coordination of public investment projects, although it noted that some projects have yet to be fully subjected to the new framework.
Several more reforms remain incomplete
MBABANE – Despite the encouraging assessment, the report also acknowledged that several reforms remain incomplete.
Among the delayed initiatives are Cabinet approval of the State-Owned Enterprises Policy, National Procurement Policy and broader Public Financial Management Reform Roadmap.
The bank explained that the latter may only be finalised after a new Public Expenditure and Financial Accountability (PEFA) assessment scheduled for 2027, meaning completion could extend beyond the life of the current programme.
The report also observed that reforms aimed at enabling fully digital company registration remain underway, with amendments to the Companies Act expected to reduce business registration to one day once enacted.
Currently, registering a company takes up to three days.
On fiscal performance, the bank reported encouraging progress in reducing government arrears.
Outstanding arrears declined from 4 per cent of GDP to 3.2 per cent of GDP, moving closer to the programme target of 2.7 per cent, although the bank noted that the ideal long-term objective remains eliminating arrears altogether.
The report further revealed that government had cleared approximately E1.05 billion previously classified as arrears after Cabinet determined the amounts related to micro-project allocations that had never proceeded to procurement or contracting.
The accountant general has also submitted the 2024/25 arrears report to the auditor general, with the 2025/26 report expected to follow during June 2026.
Overall, the AfDB concluded that implementation remains on track.
Out of the programme outputs assessed, 10 have already been achieved, seven are progressing as planned, three remain on track but with delays, while one output was abandoned after government opted to transfer the proposed Centre for Financial Inclusion functions to the Central Bank of Eswatini instead of establishing a separate institution.
