Eswatini - Enhancing economic resilience and competitiveness programme (phase I)

The proposed operation is an ADB loan of USD 47.5 million (Forty-Seven Million Five Hundred Thousand United States Dollars) to the Kingdom of Eswatini (KoE) to finance the Enhancing Economic Resilience and Competitiveness Program (EERCP). The EERCP is structured as a programmatic series of two consecutive General Budget Support operations covering the fiscal years (FY) 2025/26 and FY2026/27. This follows a request dated June 27, 2024, from the Government of the Kingdom of Eswatini (GoKE). It builds on the Bank’s experiences specific to Eswatini by supporting economic and financial governance reforms and capabilities. The proposed operation aligns with the country’s National Development Plan (NDP, 2023-2028). The NDP includes several strategic priorities, such as macroeconomic and fiscal stability, private sector development, efficient public service delivery, and environmental sustainability. Additionally, the EERCP aligns with the Bank’s Country Strategy Paper (CSP) 2025-2029. Under Priority Area II, the Bank aims to support the country in enhancing economic governance and reinforcing frameworks that strengthen the business-enabling environment, facilitate trade, foster Micro, Small, and Medium Enterprises (MSMEs) growth, and deepen financial inclusion. The operation will also assist Eswatini in implementing recommendations of the Southern Africa Development Community (SADC) Peer Review Report adopted by the Peer Review Panel in 2022. The report recommended, diversification of export markets and products, expediting the establishment of Revenue Stabilisation Fund (RSF) and improving energy generation among others.