Minister of Finance Neal Rijkenberg has presented a record-breaking E36.92 billion budget for the 2026/27 financial year, up from E32.6 billion in the previous year.
Under the evocative theme “Agape Love: Love in Action for Economic Transformation,” the Minister outlined a fiscal roadmap to transition the Kingdom from stabilization to aggressive economic acceleration.
The budget represents an unprecedented E4.3 billion increase over the previous year, the largest single-year jump in the nation’s history. “A budget is more than numbers; it is a moral document,” the Minister said. “This year’s budget is built on Agape love – the kind of love that builds institutions, strengthens families, and chooses the greater good over personal comfort.”
The Minister identified poverty and unemployment as Eswatini’s most pressing challenges. The government’s strategy to address them is rooted in a pro-growth agenda. The 2026/27 budget projects robust GDP growth of 5.2%, driven by massive investments in infrastructure and industrial capacity.
“The medium-term outlook remains cautiously optimistic, with growth projected at 5.2 percent in 2026, supported by sustained public and private investment. Key growth drivers include major infrastructure projects such as the Strategic Oil Reserve; the construction of MR14 and MR21 (an 110-kilometer road connecting Siphofaneni to Nsoko and Maloma to Siphambanweni); the Central Bank headquarters; Manzini Mall; renewable energy initiatives; and the continued implementation of the Mpakeni Dam, among others,” the Minister said.
A central pillar of this growth is capital expenditure, which has increased to E7.8 billion (from E7.2 billion). These funds are earmarked for “constructing growth” through projects such as the LUSIP II Project, Factory Shells, and Road Infrastructure.
The budget signals a massive commitment to social transformation, with the Ministry of Education and Training receiving a staggering E6.4 billion, a 16.7% increase. “We are investing in the youth. Although the full impact of our education efforts may not be seen until 2040, it is a necessary long-term investment in our people,” Rijkenberg explained.
Perhaps the most significant shift in Eswatini’s economic landscape is the sharp rise in domestic revenue. For decades, the Kingdom relied heavily on SACU receipts. However, today’s budget shows that domestic revenue now accounts for 59% of total revenue, while SACU receipts have declined to 36%.
This shift is attributed to:
• Border Declaration Reforms: Raising the threshold to E10,000 to promote transparency and compliance.
• The UMSEBE IFMIS System: A new digital Integrated Financial Management System that has improved real-time expenditure monitoring and reduced waste.
The Minister addressed concerns about the national debt, projected to reach 45-46% of GDP. He clarified that this figure includes “contingent liabilities,” such as the loan for the Strategic Oil Reserve, which is technically signed by the government but will be fully repaid by the Eswatini National Petroleum Company (ENPC) from its own income streams.
Regarding the public service wage bill, the Minister noted it has grown from E10.48 billion to E12.4 billion following a comprehensive salary review. This is also a key contributor to the increased budget. Despite this E2 billion increase, the wage bill as a percentage of expenditure has risen only from 32% to 33%, a significant improvement from the 42% seen in 2018. The medium-term target remains to reduce it to below 30%.
Security of supply remains a priority. The Minister announced that Eswatini has issued notices of intent to award contracts to nine Independent Power Producers (IPPs) for up to 1,000 MW of renewable energy, including solar, biomass, and hydroelectric.
Additionally, two of the nation’s most anticipated projects are reaching the finish line:
1. The International Convention Centre (ICC): Confirmed to be officially opened by His Majesty the King on April 25, 2026.
2. Mkhondvo-Ngwavuma Water Augmentation Project: Progressing steadily to transform the agricultural landscape of the Shiselweni region, currently at 44%.
Addressing the “narrative” that citizens do not feel economic growth in their pockets, the Minister pointed to a contraction in household credit (which fell to 2%), compared with a 14% expansion in business credit. “The best way to get the man on the street to feel the impact is to provide jobs,” he said.
The budget projects that over 10,000 new jobs will become available in the coming year as these capital projects and factory shells transition from construction to operations. “This budget is our action; it is a testament to our commitment to love and serve every LiSwati in truth,” the Minister said.