By Sifiso Sibandze
Finance Minister Neal Rijkenberg on Monday delivered a E29.4 billion pro-growth which is also viewed as being inclusive.
Eswatini’s 2024/2025 budget presents a pro-growth narrative that is expected to unite the country and lay the foundation to create opportunities for all emaSwati.
The Minister stated that in line with the National Development Agenda, the budget will address social challenges, build Infrastructure and provide for economic growth.
To attain this growth, Rijkenberg said the government will prioritize the completion of existing capital projects, and spending more than E1 billion on capital infrastructure, compared to the current year’s actual expenditure.
“Two of our most pressing challenges remain poverty and unemployment. The only real way of sustainably addressing these is by growing the economy, which not only gets more people employed but also creates more opportunities for emaSwati to get better employment. This in turn will lift our people out of poverty,” the minister said during his address to Parliament.
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Rijkenberg added that no one silver bullet is going to save us.
“It is going to require doing many things well: continuing to cut unnecessary and wasteful expenditure, completing all outstanding capital projects, starting new capital projects that will give us good returns, and continuing to make Eswatini the investment destination of choice in the region,” he said.
MAJOR PROJECTS
Major projects to be completed include the International Convention Center (ICC), the Manzini-Mpandze Highway, the Mpandze-Mbandlane Highway, the Nhlangano-Sicunusa road, the Manzini Golf course interchange, LUSIP Phase II, the Biotechnology Park, Buhleni Police Station and the Shiselweni Network Reinforcement Projects.
Rijkenberg said prioritizing the completion of existing projects should position the country to start seeing economic returns from the operationalization of these projects and create space in the capital budget for new projects going forward.
The outlay for raising capital expenditure by over E1 billion to E6.34 billion will improve infrastructure in remote parts of the country and provide economic opportunities for consumers, investors and businesses.
Rijkenberg further added that the goal of his budget was to keep Eswatini on a path of sustainable economic growth. He highlighted that the budget has a fiscal deficit of 1.96% of GDP.
“This means Mr. Speaker, that even though our debt is still increasing slightly, but if our GDP continues to grow with the estimated 4.9 %, then our debt to GPD ratio actually reduces in real terms,” he said.
FARMERS
While making provisions for increased capital spending, Rijkenberg also made sure that the government continues to support farmers through the Input Subsidy Programme being implemented through the National Maize Corporation (NMC). This is aimed at increasing production and productivity and E59 million has been allocated to the programme.
Furthermore, the Agriculture Revolving Fund was capitalized to the tune of E35 million. Rijkenberg also announced that a sum of E630 million in the budget has been earmarked for the construction of the Mpakeni Dam.
The LUSIP II project has also been allocated a budget of E417 million to bring it to completion so that the nation starts to realize real returns from its utilization and feed into the overall growth imperative in the medium term.
As this project rolls out, it should give a 0.5 per cent growth in 2024, 0.5 per cent growth in 2025, and 0.75 per cent growth in GDP in 2026. Furthermore, in a bid to ensure all-encompassing economic growth in all 59 Tinkhundla centres, Rijkenberg allocated E440 million to the Ministry of Tinkhundla Administration and Development.
Additionally, E177 million was budgeted for the Rural Development Fund (RDF) and E183 million for the Micro Projects Community Development Fund (CDF), highlighting the government’s focus on creating opportunities and infrastructure in rural areas.
SOCIAL CHALLENGES
Despite planning for expanded economic growth, efforts to address social challenges were not ignored and, in the budget, the minister allocated a stake of E748.6 million for vulnerable groups.
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Rijkenberg emphasized that the government has continued to prioritize the needs of vulnerable groups by providing various social transfers amounting to E748.6 million in the current financial year.
He said the resources have enabled the government to increase the number of eligible Persons with Disabilities to 14 459, while benefiting 58 847 OVCs and a total of 81 554 Elderly Persons as of November 2023.
Overall, the Office of the Deputy Prime Minister’s allocated budget increased by E59 million in 2024/2025 as the government allocated E909 million, up from E850 million in the 2023 financial year, to continue providing essential services for the social sector.
WATER PROJECTS
In furtherance of improving emaSwati’s social life, Rijkenberg announced that the government will continue to fund two ongoing rural water projects.
He said the government has provided E275 million for the Manzini Regional water and sanitation project and E292 million for the Shiselweni water supply and sanitation project.
These projects are aimed at getting potable water to emaSwati living in rural areas. Regarding healthcare improvement, the minister announced an allocation of E250 million more to the health budget bringing it to E3 billion, representing 10 per cent of the total budget.
As a critical component of social spending, Rijkenberg increased the budget for education from E3.94 billion to E5 billion, which represents 17 per cent of the total budget.
The government allocated E194 million for the OVC fund and E647 million for scholarships.
