The Minister of Finance, Neal Rijkenberg, has reiterated the country’s tight fiscal position, emphasizing that there is simply not enough money to cover all national needs, and economic growth is the only solution.
Speaking at the 2025 Post-Budget Seminar on Friday, 7 March 2025, Rijkenberg highlighted the difficult choices that must be made to balance limited resources while driving economic growth.
Rijkenberg acknowledged that there are mounting expectations for increased government spending but stressed that Eswatini’s budget remains constrained.
He stressed that the country does not have enough money to fund everything that it needs. He explained that even if the national budget was five times larger, it still would not be sufficient to meet all demands.
Worth noting is that this year’s national budget stood at E32.61 billion, meaning a budget five times larger would be E163.05 billion.
The minister emphasized that Eswatini, like many other nations, faces the challenge of balancing limited revenue with growing expenditure needs. “A budget is really about getting the right balance ensuring that resources are allocated appropriately and that expenditure is aligned with our strategic priorities,” he said.
Despite these financial challenges, Rijkenberg insisted that economic growth remains the most viable path to addressing Eswatini’s core problems poverty and unemployment. “If we focus only on social spending, we will remain stuck in the same position. Instead, we must prioritize growth, as this will create jobs and improve livelihoods, he explained.
He highlighted key budgetary allocations aimed at driving economic expansion, including infrastructure development, private sector support, and investment-friendly policies. He said that getting the roads right, supporting businesses, and creating an environment conducive to growth is the government’s best shot at improving people’s lives.
Rijkenberg credited Eswatinis’s economic growth to private sector confidence, stating that domestic companies are leading the expansion rather than foreign direct investment (FDI). “Private companies in Eswatini are going through expansions and growth because they believe in the economy. That’s what’s driving our progress, he said.
Eswatini’s economic growth has outpaced regional averages, with GDP growth recorded at 5% in 2023 and 4.8% in 2024. Looking ahead, the Ministry of Finance projects an 8.3% growth rate for 2025.
“This growth is not driven by external factors but by our own economic policies and private sector expansion,” Rijkenberg stated.
He reassured stakeholders that the government is carefully managing its debt, keeping the debt-to-GDP ratio at 40.5%, well below the 45% threshold considered critical for financial stability.
“We can take on more loans, but only if our debt remains sustainable,” he emphasized.
Rijkenberg warned about the long-term risk of overreliance on Southern African Customs Union (SACU) receipts, stating that Eswatini must prepare for a scenario where these revenues decline.
“If SACU revenue were to disappear, we need to have room to maneuver, which is why we maintain a cautious approach to debt,” he said.
The government’s strategy is to keep debt at manageable levels, ensuring that if SACU payments were to decrease, Eswatini could still sustain its economy through borrowing without exceeding 60% debt-to-GDP.
Despite the financial constraints, Rijkenberg remains optimistic that Eswatini is on a sustainable path to economic growth. He called for continued collaboration between the government, private sector, and development partners to ensure that fiscal discipline translates into tangible improvements for the nation.
“This is a team effort. If we continue on this path, we will achieve long-term prosperity for all emaSwati,” he concluded.