The Board of Directors of the African Development Bank has approved Eswatini's Country Strategy Paper (CSP) 2025-2030. The target is to accelerate the country's structural transformation and build a strong foundation for a more inclusive, diverse, resilient, and competitive economy.
The new strategy, which followed extensive consultations with government authorities, civil society, the private sector, and development partners, represents a significant shift in focus for the African Development Bank Group's support. It strategically aligns with Eswatini's National Development Plan (2023-2028) and the Bank's High-5 operational priorities.
"As a nation, we are very pleased to learn that the priority areas for the Country Strategy Paper build on past African Development Bank support. Indeed, this strategy will provide us with the necessary continuity and long-term sustainability for our development agenda," said Neal Rijkenberg, Eswatini's Minister of Finance.
The strategy focuses on two priority areas: Investing in climate-resilient infrastructure to reduce business costs, focusing on transport, energy, and water/sanitation sectors; and strengthening competitiveness to promote private sector development.
These priorities aim to overcome Eswatini's primary development challenge: slow progress toward higher value-added production, which has constrained economic diversification and structural transformation.
"This CSP marks a pivotal moment in Eswatini's development trajectory," said Leila Mokkadem, African Development Bank Group's Director General for Southern Africa. "By investing in climate-resilient infrastructure and strengthening the competitiveness of the private sector, we aim to address Eswatini's structural challenges and unlock its considerable potential as a regional leader in supporting infrastructure, renewable energy, and agro-industrialisation."
Key Investments and Outcomes
The CSP's financing will combine sovereign and non-sovereign resources totaling approximately $1.02 billion.
By 2030, strategic outcomes are expected to include increased access to electricity and improved energy security; a 48percent reduction in transport costs in project regions; doubled agricultural productivity in targeted areas; 33 percent reduction in business registration timer Securing anchor investors for Mukhondo Ngwavuma Water Augumentation Project, enhanced cost efficiency in public procurement and a significant decrease in public expenditure arrears, close to zero.
Cross-Cutting Priorities
The strategy incorporates several cross-cutting themes, including gender equality, investing in youth, climate resilience, and improving public health. The African Development Bank Group will integrate skill development components into its infrastructure projects to enhance the employability of young people and women.
"By adopting this more selective, focused approach, we're positioning Eswatini to maximize the impact of each investment," Leila Mokkadem emphasized. "This strategy represents our commitment to supporting Eswatini's ambition to become a regional leader in sustainable development."
The African Development Bank is a trusted partner to Eswatini. Its active portfolio grew from $222.5 million in 2020 to $480.1 million by November 2024.
