COVID-19: Finmin Neal Rijkenberg outlines eSwatini’s economic recovery plan

The Eswatini government is on a mission to rebuild and reform its economy following the challenges brought by the COVID-19 pandemic. In a recent budget speech, Minister Neal Rijkenberg outlined a comprehensive plan to drive economic growth and post-pandemic recovery. The key theme of the plan is centered around fixing foundational issues and leveraging partnerships with the private sector to drive growth. Here are three key points from the interview with CNBC Africa: 1. Private Sector Collaboration: Minister Rijkenberg emphasized the importance of collaboration with the private sector in driving economic recovery. By identifying and supporting large-scale projects with private sector involvement, the government aims to catalyze significant economic impact with relatively few projects due to the country's small size. The plan focuses on identifying 99 projects valued at around 30 billion MNG, with government and private sector contributions. Already, 22% of the projects have begun, indicating progress in the implementation of the recovery plan. 2. Debt Management: Addressing concerns about rising debt levels, Minister Rijkenberg clarified that Eswatini's debt-to-GDP ratio remains relatively low, currently at around 40%. The government is focused on reducing arrears and improving fiscal discipline to manage debt sustainability. Efforts to reduce outstanding bills to suppliers from approximately 6 billion MNG to 1 billion MNG demonstrate a commitment to fiscal prudence and financial stability. 3. Fiscal Strategy and Revenue Diversification: With declining revenues from the Southern African Customs Union (SACU), Eswatini is implementing a three-year fiscal strategy in collaboration with international financial institutions. The goal is to reduce the fiscal gap from 7.5% of GDP to 1% over three years, mitigating the impact of reduced SACU receipts. By diversifying revenue sources and securing budget support, the government aims to navigate the challenges posed by economic shocks and revenue fluctuations. A Quote from the Interview: Minister Rijkenberg highlighted the importance of intra-African trade and regional cooperation in driving economic growth on the continent. He emphasized the need for African governments to work together to promote trade between countries and leverage comparative advantages to boost economic development. By fostering a conducive environment for private sector investment and implementing strategic trade policies, African nations can unlock significant growth potential and enhance regional economic integration.