Donors cancel budget aid for Swaziland

Flag of Swaziland. The African Development Bank has cancelled its $100 million budget support for the country. Photo by: whl.travel / CC BY-NC-SA

Swaziland’s cash-strapped economy has taken yet another blow after the African Development Bank deferred its budget support for the country.

AfDB will no longer provide the $100 million budget support it promised to disburse over three years, Swaziland Finance Minister Majozi Sithole said, according to Swazi Media Commentary. The news comes just days after South Africa canceled a $300 million loan for the country.

Both AfDB and South Africa cited Swaziland’s failure to cut back spending and meet targets it agreed on with the International Monetary Fund as the basis of their decisions.

AfDB’s decision appears to cover only the mentioned budget support. It remains to be seen if support and loans for development projects in the country will be affected.

Find AfDB projects in Swaziland. Read more development aid news online, and subscribe to The Development Newswire to receive top international development headlines from the world’s leading donors, news sources and opinion leaders — emailed to you FREE every business day.

About the author

  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.