Eswatini approves EPTC loan amid fiscal concerns

The Eswatini Parliament has approved a US$26 million (approximately E455 million) loan guarantee for the Eswatini Posts and Telecommunications Corporation (EPTC). Backed by the World Bank, this facility is intended to support the Digital Eswatini Project and address the corporation’s significant pension liabilities. The EPTC pension scheme currently faces a deficit of hundreds of millions of Emalangeni, supporting approximately 500 beneficiaries with only 144 active contributors.

During the legislative debate, lawmakers raised concerns regarding the financial stability of the state-owned entity and the potential risk to taxpayers in the event of a default. In response to concerns regarding job security, EPTC management assured Parliament that there are currently no plans for employee retrenchments. The intervention aims to stabilize operations that have been strained by the diversion of operational funds to meet pension obligations.

Broader parliamentary discussions continue to highlight government cashflow problems. Legislators noted that financial constraints are stalling development projects, such as road construction, and slowing service delivery. In response to criticisms of fiscal management, Finance Minister Neal Rijkenberg defended the practice of paying rent to the Public Service Pension Fund (PSPF) for occupied buildings. The Minister argued these payments help address a 13% funding gap in the PSPF, which may reduce the long-term financial burden on taxpayers since the government acts as a guarantor for the fund’s shortfall.