By 
By Delisa Magagula
Minister of Finance Neal Rijkenberg has confirmed that the E5.2 billion loan from EximBank, secured for Eswatini’s Strategic Oil Reserve, will be repaid through adjusted fuel tariffs effectively making fuel users the beneficiaries of the loan’s repayment.
He explained that the reserve was a strategic necessity to ensure national energy sovereignty and a sufficient supply of fuel. Neal was speaking on his popular Finance platform over the week.
Additionally, Rijkenberg outlined that three other newly approved loans, each totaling approximately E4 billion, would be financed via general government revenue ultimately borne by taxpayers.
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These include two loans from the World Bank: one aimed at rural electrification and another designated for budget support, as well as an African Development Bank loan earmarked for the construction of a 100 km road.
He emphasized that these financing sources were being segregated to align repayment responsibility with benefit: users for oil and taxpayers for broader development needs. The World Bank funds are expected to be disbursed over the next two to three years.
Despite increasing debt levels, Rijkenberg reiterated that Eswatini’s debt-to-GDP ratio remained within sustainable bounds, attributing this to disciplined prior borrowing.
Rijkenberg noted that Eswatini had only taken on two or three new loans in the current financial year, reflecting a cautious fiscal approach.
He mentioned the passage of a major loan Bill providing funding from Taiwan, expected to create around 800 direct jobs and stimulate economic growth.
The loan received unanimous parliamentary approval, with lawmakers citing its alignment with King Mswati III’s vision of advancing the country to first-world status. MPs and senators urged prompt implementation to prevent inflation-driven cost escalations, and they commended the project’s potential socioeconomic impact.
Minister of ICT Savannah Maziya highlighted the importance of timely and transparent execution. Senator Tony Sibandze, chairing the Finance Portfolio Committee, described the loan as a ‘litmus test’ for the Eswatini National Petroleum Company (ENPC), and recommended consistent Cabinet reporting on progress.
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Rijkenberg agreed, citing lessons from the successful Eswatini Water and Agricultural Development Enterprise (EWADE) projects; he confirmed Cabinet would closely monitor implementation and provide periodic updates to Parliament.
