MBABANE – Finance Minister Neal Rijkenberg says Eswatini’s national debt will be kept below the 45 percent threshold to preserve fiscal stability, despite calls from some Members of Parliament to increase it.
Speaking during the latest edition of Finance in Focus, Rijkenberg said the country’s debt-to-GDP ratio currently sits just above 40 percent, a level he believes allows government to maintain favourable borrowing conditions while protecting spending on core services like education and health.
“Once debt rises, so do interest payments — and that money doesn’t go to services but to creditors,” he said. “It eats into what could be used for schools, hospitals, and infrastructure.” 
Rijkenberg explained that although Eswatini’s reported debt stands at E36 billion, there is an additional E17 billion in approved but undrawn credit, meaning future budgets will still tap into that pool.
He cautioned that pushing the debt ratio higher would increase the cost of borrowing, especially from international lenders, and make the country less attractive to investors.
“We’re considered low risk by global lenders, so we get good interest rates,” he said. “The private sector also sees this as a sign of stability — that they can safely invest in Eswatini and expect returns.”
He also raised concerns over Eswatini’s reliance on SACU revenue, describing it as a potential vulnerability. “It’s not a crisis now, but SACU could end with a 12-month notice. If that happens, we’ll need to rely more on our own resources, and a lower debt ratio gives us headroom to adjust,” Rijkenberg said.
The minister also turned his attention to household finances, warning that many Emaswati are living beyond their means. He advised individuals to avoid excessive borrowing and keep repayments under 30 percent of their income.
“Start small — pay off the smallest debts first, like store accounts,” he said. “Once you’re beyond 30 percent, it becomes hard to survive.”
