BY MFANUFIKILE KHATHWANE
LOBAMBA – The Eswatini Civil Aviation Authority (ESWACAA) has set aside over E70 million this year alone as part of its ongoing efforts to strengthen financial management and stem rising operational losses.
This emerged on July6,2026 when the Public Accounts Committee (PAC), chaired by Deputy Speaker Madala Mhlanga, considered the Auditor General’s Financial Audit Report for the year ended March 31, 2024, during a meeting with the Ministry of Public Works and its parastatals.
Presenting the audit findings, Acting Auditor General Mpumelelo Matimelane said the Authority continued to record operating deficits, warning that sustained losses could eventually require government financial support if left unchecked.
The report noted that ESWACAA’s accumulated deficit stands at approximately E1.712 billion, while the Authority recorded a net operating deficit of E117 million in 2024, an improvement from E134 million in 2023. Preliminary 2025 financial statements also indicate a projected operating loss of about E109 million.
Responding to the findings, ESWACAA Chief Financial Officer Gugu Mdluli acknowledged the losses but stressed that they were largely the result of accounting depreciation on high-value airport infrastructure rather than excessive expenditure or overspending.
She explained that when the Authority began operating in 2009 it managed Matsapha International Airport, before assuming responsibility for King Mswati III International Airport in 2015. Government transferred the airport’s infrastructure assets to the Authority, together with their associated depreciation values, significantly increasing annual depreciation costs reflected in the financial statements.
“The losses are not because we have spent more than the Government has given us. They are mainly driven by the depreciation of major infrastructure assets,” she explained.
Mdluli told the Committee that the Authority had adopted prudent financial management measures, including setting aside substantial reserves each year to replace critical infrastructure and equipment.
She revealed that more than E70 million has been reserved this year alone for future asset replacement, demonstrating the Authority’s commitment to maintaining world-class aviation infrastructure while improving its financial sustainability.
To illustrate the scale of investment required, she said specialised airport equipment carries significant costs, citing the recent purchase of a fire rescue vehicle valued at E24 million.
She further explained that the Authority’s asset base includes airport buildings, the runway, air navigation systems, furniture and other operational infrastructure, with the runway alone valued at approximately E2.4 billion. These assets continue to depreciate annually, creating accounting losses despite remaining fully operational.
PAC members welcomed the explanation.
Deputy Speaker Mhlanga described the Authority’s response as encouraging, saying it inspired confidence that management understood the challenges and had a clear plan to address them.
“CFO, you seem to know your story,” Mhlanga remarked, commending her for providing clear and comprehensive responses.
PAC member Sifiso Shabalala said he was initially alarmed after reading the audit report but was reassured by management’s explanation, noting that the Authority appeared to be making steady progress in addressing its financial position.
Meanwhile, PAC member Bonginkosi Dube observed that the projected 2025 financial statements still reflected operating losses, stressing the importance of ensuring that the Authority’s turnaround efforts continue to gain momentum.
#ESWACAA #PublicAccountsCommittee #MadalaMhlanga #GuguMdluli #PublicWorks #AuditReport #Aviation #KingMswatiIIIInternationalAirport
