Eswatini government arrears fall to E2.7 billion
The African Development Bank reports a reduction in outstanding government payments due to reforms.
Eswatini government arrears have fallen to E2.7 billion, representing 3.2 per cent of GDP, down from 5.2 per cent in the 2022/23 financial year. The African Development Bank (AfDB) noted this progress in its September 7, 2026, report, attributing the decline to ongoing reconciliation and settlement efforts. Despite this improvement, the outstanding payments remain above the programme's target of two per cent of GDP.
The AfDB's Enhancing Economic Resilience and Competitiveness Programme (Phase I) has been rated highly satisfactory for implementation progress. Reforms aimed at strengthening fiscal discipline and improving public financial management, including the implementation of the Integrated Financial Management Information System (IFMIS), have contributed to the reduction. Cabinet also approved the write-off of commitments that do not qualify as arrears.
Eswatini is undertaking these reforms with support from an AfDB loan of US$47.5 million, approved in June 2025. The report highlights improvements in public financial management, such as the establishment of the Revenue Stabilisation Fund in 2023 to manage SACU revenue fluctuations. This fund has helped cushion the economy from the recent global energy crisis.
Why it mattersBusinesses supplying goods and services to the Eswatini government face reduced pressure from falling arrears.