By Mbono Mdluli
MBABANE – Government is working diligently to clear outstanding arrears owed to suppliers by March or April this year, according to Minister of Finance Neal Rijkenberg.
Speaking on his weekly #FinanceInFocus programme, Rijkenberg explained that government’s current cash flow is tight due to ministries rushing to submit invoices before the end of the financial year. As a result, some payments have been delayed.
The minister assured suppliers that government is committed to settling all arrears as soon as possible and urged them to be patient during this period. He expressed confidence that by the end of April, the issue would be fully resolved.
Seeking Financial Support
To address the cash flow constraints, government is actively engaging with major financial institutions, including the Johannesburg Stock Exchange (JSE), the World Bank, the African Development Bank (AfDB), and the OPEC Fund for International Development (OFID), for budget support loans.
Rijkenberg reassured the public that these loans are solely meant to support the budget and will not negatively impact Eswatini’s financial stability. He emphasized that government aims to prioritize supplier payments to prevent prolonged debts.
Government’s Loan Plan
As previously reported on February 15, 2025, government is securing approximately E1.8 billion in loans to settle outstanding payments owed to suppliers. During his Budget Speech on February 14, 2025, Rijkenberg confirmed that two key financial institutions have been approached for funding:
- World Bank: USD 50 million
- African Development Bank (AfDB): USD 50 million
These funds are expected to ease financial pressures and ensure suppliers receive their long-overdue payments.
Business Sector Concerns
Business Eswatini CEO E. Nathi Dlamini stated the challenges posed by delayed government payments, noting that many suppliers are forced to take bank loans to fulfill government contracts. He revealed that unpaid debts of E2.8 billion have resulted in approximately E170 million in accrued interest, negatively affecting businesses across various industries.
However, Dlamini welcomed the government’s price catalogue initiative, which standardizes product prices for government procurement, preventing price inflation and further debt accumulation. He also praised the recent performance progress report, which reflects the government’s commitment to improving the business environment.
Expressing optimism, Dlamini believes 2025 will be a productive year, supported by the government’s Plan of Action and continued efforts to resolve financial challenges.
