By Phiwa Sikhondze
The government of Eswatini has announced an 8.3% increase in public spending for 2025, marking a significant step towards boosting development and improving livelihoods across the country.
This expansion follows a consistent rise in government expenditure over the past two years, underscoring the government’s commitment to stimulating economic growth.
In his first 2025 Finance in Focus episode, the Minister of Finance, Neal Rijkenberg, expressed optimism about the year ahead, highlighting how increased spending will benefit EmaSwati at the grassroots level.
“We believe that the growth this year is going to be very high. At the moment, we are talking about an 8.3% growth in public expenditure. This is the highest we’ve had in a very, very long time,” he said.
The minister emphasized the correlation between government spending and economic growth in recent years. In 2023, Eswatini experienced double-digit growth in public expenditure, which contributed to a 5% economic growth rate. Similarly, 2024 saw another year of robust government spending, with economic growth rebounding to around 5% despite adjustments due to rebasing.
Minister Rijkenberg expressed hope that this trend would continue in 2025, stating, “We believe that EmaSwati will start feeling the impacts of this growth on the ground. After the challenges of the COVID-19 pandemic, the past few years have laid the groundwork for a period of sustained recovery and expansion.”
Key to this year’s government spending is the financing of large-scale infrastructure projects, such as the Mkhondvo-Ngwavuma Water Augmentation Project (MNWAP).
This ambitious E30 billion initiative includes the construction of dams, canals, and irrigation systems, and is expected to drive agricultural productivity and create thousands of jobs, particularly in the Lubombo region.
The project’s first phase, the Mpakeni Dam, is already under construction, and subsequent phases include a dam in the Mkhitsini area and a pipeline system connecting catchment areas.
These efforts are expected to irrigate up to 30,000 hectares of land, boosting cotton production and feeding into the textile industry, while also addressing energy needs through hydropower generation.
“The impacts of these projects will be massive,” Minister Rijkenberg said. “We’re not only talking about job creation but also about transforming the most fertile soils in the country into highly productive agricultural zones.”
The government’s focus on increased spending aims to create ripple effects throughout the economy. The minister highlighted how communities could benefit from opportunities in logistics, retail, and other sectors that will emerge around large infrastructure projects.
“Our people should start planning to take advantage of the opportunities that these initiatives will bring,” he urged. “From shops to vendors to supply chain businesses, the possibilities are endless. We are in a very good season.”
Minister Rijkenberg reaffirmed the government’s commitment to ensuring that increased expenditure translates into sustainable development.
“This is not just about short-term economic stimulation,” he explained. “We are building a foundation for long-term growth that benefits all EmaSwati, particularly in rural and underdeveloped areas.”