By Mbono Mdluli
Mbabane – The SACU Revenue Stabilisation Fund is poised to play a crucial role in offsetting the anticipated reduction in Southern African Customs Union (SACU) revenue for the 2025/26 fiscal year.
Currently holding E2.47 billion, the Stabilisation Fund will supplement the projected SACU revenue of E10.4 billion, bringing the total to E12.87 billion. However, this figure remains E190 million below the E13.06 billion collected during the 2024/25 fiscal year. Experts caution that not all funds from the Stabilisation Fund should be utilized in a single year to ensure long-term financial stability.
According to Finance Minister Neal Rijkenberg, who issued a statement today, January 17, 2025, the revenue decline stems from under-collections in the SACU Common Revenue Pool during the 2023/24 fiscal year.
“The SACU revenue for 2025/26 will amount to E10.4 billion, a significant decrease of 20.4 percent from the E13.06 billion received in 2024/25,” Rijkenberg noted. He attributed the decline to reduced nominal imports within SACU and lower excise duty revenues, particularly from tobacco products.
The minister emphasized that volatility in SACU revenue is expected to persist due to fluctuating collection levels. To address this issue, the Ministry of Finance introduced the SACU Revenue Stabilisation Fund in 2023 after Parliamentary approval of its regulations.
“The fund currently holds a balance of E2.47 billion, and a portion will be utilized in the 2025/26 budget to stabilize the country’s finances,” Rijkenberg stated.
He reaffirmed the government’s commitment to managing revenue volatility through the establishment and maintenance of the Stabilisation Fund, ensuring the nation’s financial resilience in the face of future fluctuations.
