Eswatini Economic Recovery Development Policy Loan II

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The development objectives of the Second Economic Recovery Development Policy Loan in Eswatini are to: (1) help protect lives and support firms to protect workers; (2) contribute towards securing the country’s future economic potential by strengthening transparency and budget management; and (3) improve competitiveness and open up the digital economy. These reforms are intended to stabilize the country’s fiscal position, improve competitiveness and support economic recovery, while at the same time supporting policy responses to strengthen the health system and mitigate the impact of the COVID-19 pandemic on the poor and vulnerable. This second programmatic operation has the same three pillars as the first operation to ensure continuity. The first pillar, protecting lives and livelihoods, consists of strengthening and modernizing the health system to increase life expectancy, while placing a strong emphasis on providing targeted support to firms so that they can survive and maintain jobs. The second pillar, strengthening transparency and public financial management, supports inclusive and sustainable economic recovery by addressing key structural bottlenecks, including measures to prevent the recurrence of arrears, enhancing debt and fiscal sustainability, and reforming procurement processes. The third pillar, opening up of the economy and improving competitiveness, focuses on facilitating digital transformation, and improving competition and the business-enabling environment.