Eswatini Parliament approves US$26 million loan for EPTC

The Parliament of Eswatini has approved a US$26 million (approximately E455 million) loan guarantee for the Eswatini Posts and Telecommunications Corporation (EPTC). The facility, backed by the World Bank, is intended to support the Digital Eswatini Project and address the corporation’s significant pension liabilities.

During the debate on the EPTC Loan Guarantee Bill, legislators expressed concerns regarding the financial stability of the state-owned entity and the potential risk to taxpayers should the corporation default. The corporation has faced long-standing deficits, with its pension scheme facing a deficit of hundreds of millions of Emalangeni. Currently, the scheme supports approximately 500 beneficiaries with only 144 active contributors.

In response to concerns regarding job security, management assured Parliament that there are currently no plans for employee retrenchments. The financial intervention aims to stabilize operations that have been strained by the need to divert operational funds to meet pension obligations.