The Minister of Finance, Neal Rijkenberg, has announced that Parliament has approved five major loan bills, including a $100 million loan from the World Bank aimed at achieving 100% electrification of homesteads across Eswatini.
The loan, which comes through the World Bank’s International Bank for Reconstruction and Development (IBRD), is expected to fund the final phase of rural household connections, bringing power to every homestead in the Kingdom.
Minister of Finance, Neal Rijkenberg, confirmed the development at his offices in Mbabane, where he revealed that Parliament had recently approved five major loan bills, including the landmark World Bank facility.
“Parliament has approved a $100 million loan under this second stream to complete the rural electrification programme,” Rijkenberg said. “This includes a $10 million grant component.”
According to the Minister, Eswatini’s journey toward electrification has made substantial progress over the years. In 2003, only 5% of homesteads had access to electricity. With significant support from Taiwan, this number rose to 80% by 2018. After Taiwan’s funding ceased, the Government of Eswatini pushed the electrification rate to 88% by 2024.
“We’ve now reached the most difficult and expensive phase — connecting rural and hard-to-reach households,” Rijkenberg said. “This loan will enable us to bring electricity to all emaSwati, achieving 100% electrification across the Kingdom.”
Rijkenberg explained that the loan comes through one of two financing streams now available to Eswatini through the World Bank, thanks to the country’s improved economic standing. One is a concessional loan facility with highly favourable repayment terms.
“The first is a concessional loan facility, which we have spoken about before,” the Minister said. “This is a highly favourable loan that allows us to repay dollar-for-dollar with virtually no interest. Effectively, we’re paying only 39 cents for every dollar borrowed and that is an excellent arrangement for the country.”
He further noted that no loans were passed in 2023 due to national elections, which resulted in a temporary closure of Parliament. “In 2023, we saw no loan bills due to the elections. Then in 2024, we only approved two national loans, one of which was for the Mphakeni Dam,” he said. “Hence, 2025 is more of an implementation year.”
The $100 million electrification loan is one of five new funding approvals. Among the others is an E5.2 billion Strategic Oil Reserve to be constructed at Phuzumoya, financed by the Export-Import Bank of the Republic of China (Taiwan).
“This important project is supported by Taiwan through its Eximbank, which provides long-term infrastructure financing,” Rijkenberg noted.
Another notable loan will fund a major road expansion project in the Lubombo and Shiselweni regions. The African Development Bank is backing the project, which will see over 100 kilometres of new and upgraded roads built, including the route from Siphofaneni to Maloma, looping through Big Bend.
“This project will significantly improve transportation infrastructure in that region,” the Minister said.