CANGO Participates in 2025 Post Budget Seminar Hosted by the Central Bank of Eswatini

The Central Bank of Eswatini recently hosted the 2025 Post Budget Seminar, a significant event that brought together various stakeholders to discuss and interpret the national budget. The Hon. Minister of Finance, Neal Rijkenberg, delivered his second budget speech on February 14, 2025, under the theme “Transformation for Growth!” This theme underscores the government’s commitment to fostering economic growth through strategic resource allocation and fiscal discipline.

The national budget, comprising both a capital and a recurrent budget, is designed to have a substantial positive impact on the country’s growth. The budget process is crucial for several reasons, including resource allocation to government programs, ensuring transparency and accountability, encouraging public participation, and maintaining fiscal discipline.

The 2024/25 budget was prepared amidst international tensions and geopolitical challenges that have impacted global trade and cooperation. Despite these external challenges, Eswatini aims to achieve its development objectives and sustain economic growth.

Post Budget Seminar 2025

The Post Budget Seminar serves as a vital platform for multi-stakeholder engagement, allowing for a comprehensive discussion on the national budget. The Hon. Minister of Finance emphasized the importance of balancing the budget to address the country’s major issues of poverty and unemployment. He highlighted that Eswatini’s debt-to-GDP ratio stands at 40.5%, one of the lowest in the Common Monetary Area and among other African countries, which contributes to greater economic stability and investment potential.

The Minister also addressed the risks associated with reliance on the Southern African Customs Union (SACU) and the need to bolster the stabilization fund. He mentioned that if South Africa increases its VAT rate, Eswatini would follow suit to maintain ease of trade, given the close trade relations between the two countries.

Focus Areas for the Current Term

The Hon. Minister outlined several focus areas for his current term, including:

• Transforming government procurement to e-procurement.
• Implementing an Integrated Financial Management Information System (IFMIS).
• Reforming the public accounting system.
• Clearing arrears to suppliers and businesses.
• Reforming State-Owned Entities.

Panel Discussions

The seminar featured various panelists who provided insights from different perspectives:

• Business Eswatini CEO: The CEO reflected on the budget from a business and private sector perspective, acknowledging the bold GDP growth estimate of 8.3% for 2025. However, he cautioned that geopolitical developments and economic uncertainties could impact these projections.
• Independent Economist: The economist pointed out a disconnect between the budget speech and the realities on the ground, particularly in addressing corruption and youth unemployment. He also noted the lack of tax incentives for young people.
• World Bank Country Economist: The economist emphasized the importance of the budget theme “Transformation for Growth!” and cautioned about emerging risks. He suggested improving tax revenue efficiency rather than increasing taxes and managing wage bill pressures carefully.
• Legislator: The Member of Parliament raised concerns about the financial burden of the International Convention Centre (ICC) and Hotel project and questioned the purchase of old airplanes for the national airline. He also suggested regularly adjusting fees for licenses to avoid public outcry.
• CANGO Representative: The CANGO panellist expressed concerns about rising electricity and water tariffs and their impact on households. He advocated for more funds to be directed to capital expenditure in the education sector and highlighted management challenges at the University of Eswatini.

Conclusion

The 2025 Post Budget Seminar provided a valuable platform for stakeholders to discuss and analyze the national budget. The insights and recommendations from the panelists highlighted the need for strategic planning and careful management of resources to achieve the country’s development goals. As Eswatini navigates through external challenges, the government’s commitment to transformation and growth remains crucial for the nation’s economic stability and prosperity.