MP urges Eswatini to tap E136bn local funds
Hhukwini MP Alec Lushaba proposed using local pension and insurance funds instead of foreign loans.
Hhukwini Member of Parliament Alec Lushaba urged the Eswatini government to stop borrowing from international institutions and instead use E136 billion held by local non-bank financial institutions. Lushaba questioned why the government sought external loans when substantial funds belonging to emaSwati are held by local pension funds and insurance companies. He suggested the Ministry of Finance engage the Financial Services Regulatory Authority (FSRA) to explore borrowing arrangements.
Lushaba posed the question to Finance Minister Neal Rijkenberg during a presentation of three loan Bills totalling over E3 billion for infrastructure projects. The MP specifically mentioned pension entities like MOPADO as potential lenders. He argued that using domestic funding could benefit the government and provide investment opportunities for local institutions.
Minister Rijkenberg acknowledged the suggestion's merit but cautioned that the E136 billion is not readily available for borrowing. He explained that a significant portion consists of insurance funds, which require geographical diversification to protect policyholders from local catastrophes. This diversification poses challenges for imposing local investment requirements on these funds.
Why it mattersEmaSwati's money held in local pension and insurance funds is being considered for government borrowing, potentially affecting investment opportunities and government debt.