By Mbono Mdluli
MBABANE – Business Eswatini (BE) has commended the Eswatini Government for its efforts in reducing the outstanding debts owed to suppliers.
BE Chief Executive Officer (CEO) E. Nathi Dlamini stated that 2024 marked a year of significant progress due to the government’s commitment to settling supplier debts. Speaking on EBIS’ Letishisako current affairs program on Tuesday, December 31, 2024, Dlamini highlighted that government debts to suppliers had been reduced from approximately E2.8 billion to E700 million. He described this reduction as a substantial relief for the private sector in Eswatini.
Dlamini emphasized that these debts had been a major challenge for suppliers, as they often had to secure loans from banks to procure the goods required for government contracts. The accumulated interest on these loans, caused by delayed payments, reached approximately E170 million, placing significant financial strain on businesses. He urged the government to intensify its efforts to clear the remaining debts to prevent further interest accrual, which could adversely impact the private sector.
The CEO also commended the introduction of a price catalog by the government, which standardizes the pricing of products supplied to state entities. He explained that this initiative would help prevent debt accumulation and curb the inflation of product prices. For instance, Dlamini highlighted cases where products valued at E10 were billed to the government for E30, often due to suppliers compensating for delayed payments.
Dlamini lauded the government for its transparency through the publication of a performance progress report, which he said contained many positive developments. He expressed optimism about 2025, stating that the government’s actions, including its Plan of Action report for the year, reflected a genuine commitment to improving the lives of Emaswati.
