From partnership to impact: OPEC Fund and Eswatini deepen cooperation

For communities across Eswatini, water is closely tied to livelihoods, food security and economic opportunity. That connection was visible during a recent OPEC Fund mission to the country, where President Abdulhamid Alkhalifa visited major water and agricultural projects and joined the government in setting out a broader program for the years ahead.

At the center of the visit was the signing of the first Country Partnership Framework (CPF) between the OPEC Fund and the Kingdom of Eswatini. The agreement provides for up to US$250 million in financing between 2026 and 2029, with water, energy and health identified as priority areas. It represents a significant expansion of a partnership that began in 2007.

The framework is designed to move the relationship beyond individual projects toward a longer-term program aligned with Eswatini’s development priorities. For the OPEC Fund, it also reflects a wider emphasis on country-led partnerships that combine financing with sustained engagement around investment priorities and implementation.

“This accord reflects our shared ambition to deepen a partnership built over nearly two decades.” -- OPEC Fund President Abdulhamid Alkhalif 

During the mission, President Alkhalifa visited the Mkhondvo-Ngwavuma Water Augmentation Programme, a major investment in water infrastructure and agricultural development. The OPEC Fund is providing a US$20 million loan for Phase 2, alongside the African Development Bank and BADEA.

The program includes construction of the Mpakeni Dam as well as irrigation and on-farm infrastructure. Once completed, the dam is expected to support irrigation across as much as 30,000 hectares of farmland – expanding the productive use of water while strengthening agricultural output, food security and rural livelihoods.

President Alkhalifa discussed implementation of the program with Minister of Agriculture Mandla Tshawuka and also visited the Lower Usuthu Smallholder Irrigation Project, another major water and agricultural initiative managed by the Eswatini Water and Agricultural Development Enterprise (EWADE).

Taken together, the projects illustrate the interconnected nature of development investment. Water infrastructure does more than increase supply: it can bring additional land into productive use, improve the reliability of agricultural production and create new opportunities for farming communities.

The new framework builds on a relationship that has steadily broadened since the OPEC Fund began working with Eswatini in 2007.

To date, the institution has approved eight public sector loans totaling US$138 million, supporting transport, water and sanitation, health and agriculture, as well as economic reforms. The new CPF creates a platform for substantially scaling up that cooperation over the next four years.

During his visit, President Alkhalifa was received by His Majesty King Mswati III, with discussions covering the country’s development priorities and opportunities for further cooperation. Meetings with Prime Minister Russell Mmiso Dlamini and Minister of Finance Neal Rijkenberg focused on the implementation of the new framework and Eswatini’s wider economic and development agenda.

The combination of high-level dialogue and visits to projects already being implemented was significant: the new framework looks ahead to the next generation of investments while remaining grounded in development work already underway.

For Eswatini, that next phase will concentrate resources in areas with a direct impact on everyday life – from reliable water and energy to stronger health services. For the OPEC Fund, the partnership demonstrates how long-term relationships can evolve from individual investments into a coordinated program built around a country’s own priorities.

And on the farms and irrigation schemes visited during the mission, the objective behind those figures is already tangible: turning development finance into infrastructure, services and economic opportunities that can endure.