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MBABANE – The African Development Bank (AfDB) has commended Eswatini for making significant strides in strengthening economic governance, public financial management and private sector competitiveness.
The bank said the reforms are laying the foundation for a more resilient, inclusive and environmentally sustainable economy.
In its latest implementation progress and results report for the enhancing economic resilience and competitiveness programme (Phase I), the continental lender rated progress towards the programme’s development objectives as satisfactory, highlighting a series of reforms that have improved fiscal management, strengthened investor confidence and positioned the country for long-term economic growth.
The programme, valued at US$47.5 million (about E41.6 million), was approved in June 2025 and has already been fully disbursed, with the AfDB classifying it as a non-potentially problematic project, reflecting confidence in its implementation.
According to the report, the kingdom has made notable progress in enhancing reforms aimed at improving economic governance, public financial management and private sector competitiveness to support a resilient, inclusive and green economic recovery.
The AfDB noted that government authorities had undertaken decisive reforms to strengthen public financial management systems, describing these measures as critical to promoting fiscal discipline and macroeconomic stability. Among the landmark reforms highlighted was the establishment of the Revenue Stabilisation Fund (RSF) in 2023, created to cushion the country against fluctuations in Southern African Customs Union (SACU) revenues, which have historically been one of government’s largest but most volatile sources of income.
The report noted that the Revenue Stabilisation Fund regulations had already been established and the fund capitalised, representing one of the programme’s major completed outputs.
National investment policy coming
MBABANE – The report also revealed that Cabinet has approved the National Investment Policy, which is expected to be officially launched during the country’s Second Annual Investment Conference scheduled for July 2026.
Government has further established the country’s first-ever National Competitiveness Council, bringing together public and private sector leaders to improve the business environment and drive economic reforms.
Meanwhile, regional trade integration has also gained momentum.
The AfDB reported that Eswatini has approved its African Continental Free Trade Area (AfCFTA) Implementation Strategy 2024-2028, while a Trade Facilitation Committee has been established with World Bank support.
The bank noted that the country continues to benefit from the extension of African Growth and Opportunity Act (AGOA) preferences until December 2026, while aligning industrial policies with regional trade frameworks.
In the fight against financial crime, the AfDB highlighted notable progress in addressing anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies identified during Eswatini’s 2022 Mutual Evaluation Report.
According to the report, technical compliance has improved significantly from 14 out of 40 areas to 28 out of 40, far exceeding the programme’s target of improvements in five areas.
The report further stated that Eswatini expects to join the Egmont Group during July 2026 while preparations are underway for the country’s next Mutual Evaluation scheduled for 2029.
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