Eswatini MP proposes using 136 billion emalangeni
By the AFREEQUE newsroom, based on Times of Eswatini
MP Alec Lushaba proposes that the Eswatini government borrow from pension funds, insurers and other non-bank financial institutions in Eswatini, which hold about 136 billion emalangeni. He suggests this option as the government prepares more than 3 billion emalangeni in borrowing for infrastructure and development projects.
Hhukwini MP Alec Lushaba has proposed that the Eswatini government consider borrowing from non-bank financial institutions in the country, which hold about 136 billion emalangeni in assets belonging to emaSwati, rather than systematically relying on international lenders, the Times of Eswatini reports. He made the proposal as Finance Minister Neal Rijkenberg presented three loan Bills covering more than 3 billion emalangeni to finance infrastructure, water and economic development.
Alec Lushaba asked the Ministry of Finance to consult the Financial Services Regulatory Authority (FSRA), the authority overseeing financial services, as well as pension funds and insurers. He specifically cited MOPADO, an institution with substantial resources, as a potential lender to finance public projects while allowing the funds to invest more in the national economy, the Times of Eswatini reports.
Neal Rijkenberg said the proposal was worth examining, while stressing that the 136 billion emalangeni could not be considered funds immediately available to the state. A significant share of these assets consists of insurance funds, whose management must, among other things, preserve insurers' ability to protect their policyholders by diversifying their investments abroad, the minister explained.
The proposal comes after the announcement on 31 October of the Eswatini government's plan to borrow 3.79 billion emalangeni, intended in particular to finance public projects. It follows Eswatini wants to borrow 3.79 billion emalangeni.
