By 
By Ncaba Ntshakala
The World Bank has approved a $100 million (approximately E1.9 billion) Development Policy Loan (DPL) for the Kingdom of Eswatini, which is the first operation in a two-part programmatic series aimed at advancing the country’s reform agenda.
The loan is intended to strengthen fiscal governance, enhance private sector development, and improve energy security and climate resilience.
This financial support arrives at a critical juncture as Eswatini intensifies its efforts to address longstanding structural challenges in the economy.
According to the World Bank, Eswatini is contending with “critical constraints in achieving broad-based economic growth, efficient public resource allocation, and poverty reduction.
” The newly approved DPL is designed to tackle these issues by supporting key policy actions that the government has committed to in its National Development Plan (2023–2028) and Programme of Action 2024.
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“The operation is aligned with key national priorities such as youth employment, digital transformation, and the transition to sustainable energy, all of which are essential drivers of inclusive growth,” said Satu Kahkonen, the World Bank Division Director for Eswatini.
The DPL provides a platform for structural reforms across three key areas. The first pillar of the reform program focuses on strengthening fiscal and public financial management.
This includes efforts to improve debt transparency and debt management, reduce the accumulation of public expenditure arrears, and develop more effective mechanisms for handling volatile revenues from the Southern African Customs Union (SACU).
These actions are seen as vital to enhancing macroeconomic stability and ensuring that public funds are managed in a more transparent and accountable manner.
The second pillar targets private sector development. Eswatini’s government aims to improve the overall business climate by lowering barriers to market entry and expanding access to export opportunities for domestic firms. Measures will also promote digital payment systems, which are expected to contribute to the broader goal of financial inclusion.
This focus aligns with the country’s ambition to drive economic growth through private sector innovation and entrepreneurship.
The third and final pillar of the loan-supported reforms addresses energy security and climate resilience. Policy actions will aim to expand domestic renewable energy production and encourage private sector participation in the electricity market.
The reforms also seek to strengthen the resilience of critical infrastructure and support vulnerable households in adapting to climate-related shocks.
“This operation comes at a critical time, as the Government of Eswatini implements a policy agenda inspired by the Sibaya People’s Parliament, focused on economic growth, job creation, and improved service delivery,” said Minister of Finance Neal Rijkenberg. “We welcome the World Bank’s support as we work to uplift the livelihoods of EmaSwati and deliver on our development objectives.”
The DPL builds on the foundations laid by the previous Development Policy Financing series implemented in 2021–2022 and is underpinned by extensive technical assistance and analytical work conducted by the World Bank in Eswatini.
This continued collaboration signals the deepening of Eswatini’s relationship with the international financial institution, as the country pushes ahead with reforms that have long been in the pipeline.
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Moreover, the DPL, directly linking financial support to the government’s policy commitments, is expected to accelerate the pace of change in critical sectors.
ith a particular focus on enhancing service delivery, enabling economic transformation, and ensuring environmental sustainability, the loan reflects both national aspirations and the international development community’s confidence in Eswatini’s reform trajectory.
Furthermore, the loan is said to set a benchmark for performance-based support, where measurable progress in fiscal discipline, business environment refor
