On May 6 the Government of Eswatini received a USD 75 million loan from the World Bank to boost its economic recovery post COVID.
The second of two operations aimed at assisting Eswatini’s economic reform plan and promoting long-term recovery is the Economic Recovery Development Policy Loan II. The initiative supports Eswatini’s economic recovery program after COVID and efforts to implement significant structural changes to improve public financial management and governance, enhance transparency and accountability in the public sector, and foster private sector development.
More importantly, the project will help the poor and vulnerable better their lives by pushing legislative and institutional improvements that not only protect lives and livelihoods, but also give economic opportunities and improve public service delivery.
The World Bank Country Director Marie Francois Marie-Nelly said that this loan will aid Eswatini’s recovery by focusing on those who have been most affected by recent crises and tackling structural concerns that had been holding the country back even before the COVID-19 outbreak. Maintaining support for the governance and transparency agenda will help to build citizen confidence and strengthen public-private collaborations.
The goal of the program is to continue and accelerate reforms started under the first Development Policy Loan, which was approved in 2020, with the goal of stabilizing the country’s fiscal position, improving competitiveness, and assisting economic recovery. Specific measures to improve transparency, accountability, and efficiency include the creation of a single government treasury account to ensure the long-term viability of fiscal discipline, the modernization of public procurement strategy.