Mnisi urges municipal bonds to finance Eswatini's urban growth
Phil Mnisi, Governor of the Central Bank of Eswatini, urged municipalities to attract domestic savings through bonds and public-private partnerships. Speaking at the Eswatini Urban Development Forum in Ezulwini, he stressed governance and responsible borrowing.
Domestic savings seek credible projects
Mnisi said rising urban service demands outpace municipal resources, citing a 2025 African Cities Research Consortium report.
He identified Mbabane, Manzini, Ezulwini and Matsapha as economic hubs needing infrastructure investment.
Pension funds, insurers and banks hold capital, but municipalities need credible projects to attract it.
He proposed municipal and infrastructure bonds, green finance and public-private partnerships.
The proposed Ntshakabili Road connection to the national highway network illustrated the approach: government would handle planning, resettlement and regulatory support, while private investors supply financing, expertise and delivery.
He said the road would support tourism, property development and logistics along the Ezulwini corridor.
Regional bonds offer precedents
Mnisi cited Johannesburg's municipal bond issuance in the early 2000s, Cape Town's financing for water, electricity, transport and climate resilience, and Tshwane's municipal green bond.
He said access to capital requires reliable revenue collection, transparent reporting, project evaluation and sound governance.
His priorities included stronger revenue mobilisation, better financial management, an enabling legal framework and private-sector partnerships.
Municipal borrowing must remain sustainable and safeguard fiscal stability.
Capital access rests on trust
Mnisi placed institutional credibility at the center of municipal financing.
He linked municipal, infrastructure and green bonds to the Eswatini Stock Exchange's Kwakhanya 2030 strategy.
His stated objective was development rather than borrowing for its own sake.