By 
By Delisa Thwala
The Eswatini government is facing a cash flow squeeze, resulting in delayed payments to suppliers, but Finance Minister Neal Rijkenberg has assured that the situation will improve in the coming months.
Speaking during this week’s Finance Focus video blog, Rijkenberg admitted that the government is struggling to keep up with payments but expects the situation to ease once Southern African Customs Union (SACU) payments come in by the end of March.
“Yes, we are a little behind on payments, and we understand that this is causing frustration. But by April, things will be back on track,” he stated.
The Minister said the government was committed to clearing arrears, acknowledging that the continued delays were “embarrassing” and needed to be dealt with decisively.
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“Our main goal is to clear all outstanding payments once and for all. The issue of unpaid suppliers has been a long-standing problem, and we cannot allow it to continue. By April, all suppliers should be fully paid,” he assured.
He pleaded for understanding and patience during this time. This comes in the wake of the recently presented 2025/26 National Budget, where Rijkenberg unveiled a E32.61 billion financial plan aimed at stabilizing the country’s economy while addressing social and developmental needs.
A major highlight of the budget was its emphasis on education, infrastructure, and social welfare. The government allocated E5.41 billion to education, with E702.32 million set aside specifically for scholarships.
The increase in education spending was framed as an effort to make higher education more accessible to Emaswati.
“We want to ensure that more students have the opportunity to further their education. No deserving student should be left behind due to financial constraints,” Rijkenberg emphasized.
On the social welfare front, elderly grants were increased from E500 to E600 per month, with an additional E105 million allocated to support the adjustment.
The move was widely welcomed, with the Minister noting that supporting the elderly was a priority.
“Our elderly citizens have dedicated their lives to this country. It’s only right that we ensure their basic needs are met,” he said.
Infrastructure development was another key focus, with E1.21 billion allocated for road rehabilitation projects.
The Minister highlighted that investment in infrastructure was critical for economic growth, as better roads would facilitate trade and improve access to services.
“We are not just fixing roads; we are opening up economic opportunities. Good infrastructure means better access to markets, jobs, and essential services,” he explained.
The agriculture sector also saw a significant allocation of E1.65 billion, with E60.4 million dedicated to the Smallholder Agricultural Productivity and Market Enhancement Project (SAPEMP).
This program targets 17,000 farmers in vulnerable regions, aiming to boost food production and reduce reliance on imports.
“Agriculture is the backbone of our economy, and we need to support our farmers so that Eswatini can produce more of its own food,” Rijkenberg stated.
espite these allocations, the government is still working within a fiscal deficit of E2.88 billion. However, Rijkenberg assured that the budget is fully financed through domestic revenue, grants, and strategic borrowing.
“We are not just spending recklessly. Every cent in this budget is accounted for, and we are making sure that our financial commitments are sustainable,” he asserted.
Beyond government finances, Rijkenberg also addressed household budgeting, urging Emaswati to adopt stricter financial discipline in light of the country’s economic challenges.
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“We know times are tough, but now more than ever, people need to budget wisely. Make sure that your expenses match your income and avoid unnecessary debt,” he advised.
The Minister stressed that while the government was working to stabilize the economy, individuals also needed to take responsibility for their financial well-being.
“It’s important to live within your means. If you can, save a little each month. Even small savings can make a difference in difficult times,” he said.
While the current financial strain is evident, Rijkenberg remains optimistic that by April, government finances will stabilize, and suppliers will receive their due payments.
He also expressed confidence that the 2025/26 budget would drive economic recovery and improve the lives of Emaswati.
“We are committed to financial stability and economic growth. We ask for patience and understanding as we navigate these challenges, but rest assured, we are working tirelessly to get things back on track,” he concluded.
With the government banking on SACU revenue to ease cash flow issues, the coming months will be crucial in determining whether these promises hold.
For now, suppliers and the public will have to wait and see if the relief comes as expected.
