BY MBONO MDLULI
MBABANE – The Government of Eswatini has come forward to clarify why it continues to maintain its national debt-to-GDP ratio at 40%, following a recent motion in Parliament that questioned the rationale behind this fiscal approach.
During the debate, several Members of Parliament expressed concern that Eswatini may be missing out on economic opportunities by limiting its borrowing capacity. They pointed out that many countries, including some that are more developed, operate with much higher debt-to-GDP ratios—ranging from 50% to as high as 80%—yet their economies continue to function effectively.
In response, Minister of Finance Neal Rijkenberg, in his #FinanceInFocus segment released on August 4, 2025, outlined the government’s position and explained why sticking to a 40% ratio remains a sound and strategic decision for the Kingdom. Here are the points he outlined:
- The more the debt-to-GDP, the more the interest Eswatini has to pay. The more the interest, the less the money available to pay for key social services such as education, elderly grants, agricultural input subsidy, among other services.
- Only debt that has been drawn down is recognised. Of the E36 billion that is owed by Eswatini, only about E17 billion has been drawn down.
- Eswatini gets good rate from local and international financiers, with the debt being maintained at 40%. This means most financial institutions will be willing to borrow money to Eswatini, knowing that there are high chances of that money being paid back.
- The lower the debt-to-GDP, the likely the development of the private sector because many of the business people feel safe opening their companies in the country, be they local or foreign.
- The lower rate can also come in handy during times of a possible SACU collapse, as this can give Eswatini more room to increase its debt from 40% to 60%. This will allow Eswatini to transition from a SACU-funded budget to a non-SACU-funded budget. However, the minister said this is not to say SACU will be closed down anytime soon, as there is nothing to be scared of, for now.
On a personal finance note, the Minister also encouraged citizens to apply similar discipline. He advised Emaswati to aim to keep their individual debt levels below 30% of their monthly income. “I know it’s not easy,” he admitted, “but by starting small—perhaps by clearing minor debts first—we can eventually free ourselves financially.”
In conclusion, Rijkenberg stressed that fiscal discipline at both national and personal levels is vital for Eswatini’s economic resilience, stability, and long-term prosperity.
