- Increase strengthens government finances as Rijkenberg says stabilisation fund could reach E2 billion
BY MBONGENI NDLELA
MBABANE – Eswatini is set to receive E11.7 billion in Southern African Customs Union (SACU) revenue this financial year, giving the country a stronger fiscal position than initially projected in the national budget.
Minister of Finance Neal Rijkenberg revealed that government had budgeted for E11.4 billion, but the latest SACU position shows that Eswatini will now receive about E300 million more than expected.
The minister said this was a positive development for the country, especially at a time when government is working to strengthen service delivery, support economic growth and build reserves against future revenue shocks.
According to Rijkenberg, about E350 million is expected to be channelled into the SACU Stabilisation Fund this year. The fund already had approximately E1.5 billion at the beginning of the financial year and, with the additional allocation and interest, could grow to around E2 billion by the end of the financial year.
The fund was established to cushion the country against the volatility of SACU receipts, which remain one of Eswatini’s most important sources of public revenue.
Rijkenberg said SACU relations had stabilised and remained strong, adding that Eswatini’s share continued to improve slightly compared to other member states. He said early indications suggested that the country’s SACU receipts could continue rising next year.
The minister said stronger SACU revenue would support the country’s major economic ambitions, including infrastructure development, schools, hospitals, roads and other essential public services.
However, Rijkenberg made a direct appeal to emaSwati travelling to neighbouring countries to declare goods bought outside Eswatini when returning through border posts.
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He explained that when goods are not declared, the country loses both VAT claims and SACU revenue linked to recorded trade. This, he said, ultimately affects government’s ability to collect money that should come back to Eswatini and be used for national development.
The minister stressed that declaring goods does not mean paying extra tax in all cases, but helps government properly record trade and claim what belongs to the country.
He said every Liswati had a role to play in strengthening national revenue, adding that proper declarations at the border could translate into better service delivery for citizens.
Rijkenberg’s update comes as government also moves to expand trade opportunities through the Africa Strategic Investment Alliance, where Eswatini has committed about E90 million over several years to support SME financing and continental trade.
The initiative is expected to help local businesses access funding, markets and cross-border trade opportunities under the African Continental Free Trade Area.
For Eswatini, the latest SACU revenue outlook presents a major boost. It gives government more room to fund national priorities, build financial buffers and support the country’s broader economic growth agenda.
