By Mbono Mdluli
MBABANE – Government has expressed deep appreciation for its partnership with the World Bank.
This sentiment was conveyed by the Minister of Economic Planning and Development, Dr Tambo Gina, during the launch of the Eswatini Public Finance Review (PFR) at the Hilton Garden Inn in Mbabane on February 19, 2025. Dr Gina emphasized the importance of this collaboration, crediting it with enabling the country to access much-needed resources for its development initiatives.
“As a government, we highly value our partnership with the World Bank, not just for this review but also for supporting various lending projects that drive economic growth,” Dr Gina stated. He highlighted that the World Bank’s recognition of Eswatini’s unique economic characteristics led to its reclassification as a Blend Country.
This designation allows Eswatini to access financing from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). “This marks a significant step forward, as it enables us to secure additional and more affordable funding for our national development priorities,” Dr Gina added.
What Is a Blend Country?
According to the World Bank, a Blend Country is one eligible for financing from both IDA and IBRD sources. These countries qualify for IDA support based on their per capita income but have limited creditworthiness to borrow from the IBRD. India is an example of a blended country.
Key Characteristics of Blend Countries:
- Eligible for IDA resources on blend terms, with 35-year maturities.
- Expected to prioritize IDA funding for social sector projects.
- Typically allocate IBRD resources to infrastructure and economic growth sectors.
- As creditworthiness improves, they gradually shift towards increased use of IBRD resources.
Strengthening Public Investment Management
During the event, Dr Gina noted that the PFR provided an opportunity for the government to reflect on its policies, challenges, and opportunities in managing public finances. “As a government, we are particularly committed to strengthening public investment management to ensure that our resources are used efficiently and effectively,” he said.
Dr Gina shared that his ministry has been leading efforts to enhance public investment management and recently revised the Public Investment Management Guidelines. These updated guidelines now incorporate climate considerations to ensure sustainability. “The guidelines aim to improve the methodology used to prepare and assess public investment projects through all aspects of the project cycle—from long-term planning, project identification and preparation, quality control procedures, implementation, monitoring, and evaluation of results,” he explained. The minister emphasized that this step is crucial to ensuring investments contribute to long-term resilience and sustainability while maximizing their impact on economic growth and development.
Government’s Commitment to Reform
Dr Gina welcomed the findings and recommendations of the PFR and reaffirmed the government’s commitment to implementing necessary policy actions aimed at strengthening fiscal sustainability and promoting private sector growth. “Our commitment is to work towards implementing the necessary policy actions that will strengthen fiscal sustainability and promote private sector growth,” he stated.
The government’s ongoing collaboration with the World Bank continues to play a vital role in shaping Eswatini’s economic trajectory, with policymakers dedicated to ensuring sustainable growth and financial resilience.
