ESWATINI SOVEREIGN WEALTH FUND: STRATEGIC ECONOMIC TOOL OR ANOTHER CASH COW?
The Kingdom of eSwatini has announced plans to launch a sovereign wealth fund (SWF) worth 5 billion emalangeni ($275 million) aimed at revitalising strategic sectors like agriculture, manufacturing, and agro-processing.
Finance Minister Neal Rijkenberg described the fund as a transformative vehicle to “build wealth for future generations” and crowd-in private-sector investments. The idea, drafted with assistance from the Commonwealth, sounds promising on the surface. But in a nation where political power and wealth are tightly held by an unelected monarch — and where poverty, inequality, and youth unemployment are rampant — questions loom large.
Will the fund benefit the average Swati, or become another unaccountable pot under royal control? Sovereign wealth funds are typically designed to stabilise national economies, invest in long-term projects, and ensure sustainable wealth beyond volatile revenue streams.
“We are focusing hard on getting this right,” Rijkenberg said, pointing to the urgency of diversifying the economy beyond SACU receipts and donor bailouts. Dr. Dlamini, a development economist, said the fund, if properly governed, could bring long-term stability.
“The idea is fundamentally sound. Investing in agriculture and manufacturing could reduce our reliance on imports and generate jobs. But governance is everything. Without clear rules, transparency, and public accountability, the fund could backfire,” he warned.
eSwatini’s fiscal deficit is projected at three percent of GDP, with over E2 billion in arrears. The government is juggling multiple loans: $100 million from the World Bank, $50 million from the OPEC Fund for International Development, and a pending $45 million facility from the African Development Bank.
“If this sovereign fund is built on borrowed money and still lacks independence, it could turn into a high-risk experiment,” said Nomfanelo Simelane, a budget analyst and former Treasury official. “It has to be financed from surplus or well-performing assets, not just desperation for capital.”
While the fund is positioned as a state vehicle, eSwatini’s governance model complicates matters. The monarchy retains supreme control over all arms of government, including national wealth.
Tibiyo TakaNgwane, the royal investment fund, controls massive shares in sugar estates, banks, telecoms, and property but is not subject to public audit or parliamentary oversight. Thabani Dlamini, a youth activist with the Swaziland Youth Congress (SWAYOCO), sees the new fund as potentially “Tibiyo 2.0.”
“We’ve heard the story before — national wealth to benefit the people. Yet Tibiyo enriches the royal family while 63 percent of the population lives in poverty.
Why should we trust a new fund when even Tibiyo’s finances are a state secret?” The monarchy’s opulence is well documented with him owning fleets of BMWs and Rolls Royces, lavish parties, and international real estate holdings — all in stark contrast with crumbling hospitals and underfunded schools. “You cannot meaningfully talk about a sovereign fund without addressing the royal stranglehold over the economy,” continued Dlamini.
“Where is the democratic control? Where are the people in this picture?” From the government’s side, there is insistence that the sovereign wealth fund will be structured differently from Tibiyo. “This fund is not under the King. It is being legislated as a public institution with clear rules and professional management,” said Sipho Dlamini, a senior official at the Ministry of Economic Planning and Development.
“We need to move past politicising everything. The idea is to crowd in investment and build jobs, especially for young people.” There’s growing concern about youth unemployment, which is estimated to exceed 50 percent, with formal job creation stagnant.
Many young people turn to the informal sector or migrate. Critics argue that flashy investment funds mean little unless they address grassroots economic realities. Phumzile Nxumalo, a young agropreneur in the Shiselweni region, sees potential in the plan.
She says if the fund supports small farmers, agroprocessing hubs, and offers startup capital then it can work. But only if it actually reaches people like us on the ground. The government also plans to issue a new bond on the Johannesburg Stock Exchange “not in the billions, but hundreds of millions,” according to Rijkenberg to support the national budget. That raises concerns about piling debt onto a shaky foundation. Borrowing more while starting a wealth fund is confusing messaging,” said adds Dr Dlamini.
“If you’re building for the future, make sure the house today doesn’t collapse first. Without firm transparency commitments, regular audits, legislative oversight, and citizen reporting, the fund risks mirroring other opaque financial instruments across Africa that promised inclusive growth but became slush funds for elites."
eSwatini’s sovereign wealth fund could be a turning point but only if managed with independence, transparency, and inclusive intent. In a political system where the king rules by decree and Parliament lacks real power, trust is not automatic.
The fund’s success hinges on whether it genuinely departs from past models of elite accumulation. For it to work, it must shed the shadows of Tibiyo, stand on public scrutiny, and resist becoming another instrument of autocratic preservation. Until then, the question remains: is this the people's fund or just the monarchy’s next big project?
What Sovereign Wealth Funds Can Do (If Done Right)
● Stabilize the economy in times of crisis
● Invest in long-term development projects
● Generate non-tax revenue
● Support intergenerational equity
● Reduce dependence on volatile aid or commodity income
Examples
■ Norway’s Government Pension Fund is widely praised for its transparency and citizen oversight
■ Botswana’s Pula Fund has helped the country maintain fiscal stability despite diamond dependency
■ Nigeria’s SWF, on the other hand, has faced criticism for political interference and lack of impact