ESWATINI SECURES $47.5M AfDB LOAN TO TACKLE YOUTH UNEMPLOYMENT AND BOOST ECONOMY

The New two-year programme to drive private sector growth and fiscal reform amid economic challanges.

Eswatini National development plan Funding Economic transformation Southern africa.
African Development Bank
African Development Bank


The African Development Bank (AfDB) has approved a $47.5 million loan to Eswatini. The funding will support the launch of the Enhancing Economic Resilience and Competitiveness Programme (EERCP), a two-year reform initiative aligned with the country’s National Development Plan (2023–2028).

The programme seeks to address critical fiscal challenges while laying the groundwork for inclusive, private sector-led growth. Eswatini has been facing mounting economic pressures, including a GDP drop from 5% in 2023 to an estimated 3.6% in 2024, largely due to drought-related setbacks in agriculture. Meanwhile, the fiscal deficit has worsened slightly, increasing from 1.5% to an estimated 1.7% this year.

According to Moono Mupotola, AfDB’s deputy director general for Southern Africa, the support comes at a pivotal moment. “Eswatini is navigating challenging economic conditions while implementing ambitious reforms,” she said. “This programme will not only help the Kingdom build fiscal resilience while creating an enabling environment for private sector-led growth that can generate jobs for young people and women.”

The EERCP is built around two core pillars: improving fiscal and public financial management, and enhancing national competitiveness through green and inclusive development strategies. It includes reforms in state-owned enterprises, modernization of procurement systems, and strengthening gender-responsive policies.

Expected outcomes include a reduction in domestic arrears, an increase in the private sector’s contribution to GDP, expansion of renewable energy, and improved governance scores under AfDB’s institutional assessment framework.

This latest investment builds on the AfDB’s longstanding partnership with Eswatini and underscores the bank’s commitment to supporting sustainable economic transformation across Southern Africa.

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