By Mbongeni Ndlela
MBABANE — The Sincephetelo Motor Vehicle Accidents (SMVA) Fund has disbursed over E600 million in compensation for road accident claims in the past five years, highlighting the escalating cost of road safety in Eswatini.
This staggering expenditure was revealed by Minister of Finance Neil Rijkenberg during the opening of the SADC Road Accident Funds’ Meeting at Hilton Gardens Hotel on March 4, 2025.
The Minister’s remarks bring into focus the urgent need for sustainable funding mechanisms and enhanced road safety measures to curb these rising costs.
Rijkenberg emphasized that the financial burden of road accidents extends far beyond the compensation payouts. Collaborative institutions, including the police, hospitals, and road infrastructure agencies, collectively shoulder costs that run into billions of Emalangeni over the same period. This comprehensive impact underscores a dire need for improved accident prevention strategies alongside efficient claims management systems.
The crux of the challenge lies in sustaining the SMVA Fund without placing an excessive financial burden on motorists. Currently, the Fund is primarily supported by fuel levies—a system that is becoming increasingly unsustainable in the face of rising fuel prices and the growing adoption of electric and hybrid vehicles. As the Minister aptly noted, the shift towards alternative energy sources necessitates the development of new funding models to ensure the longevity of the Fund.
The situation calls for a balanced approach: one that secures adequate funding for the SMVA while promoting road safety to reduce the number of claims. Innovative strategies such as road usage fees, levies on electric vehicle registrations, and public-private partnerships could provide much-needed financial stability for the Fund. The Minister’s remarks serve as a call to action for policymakers to explore these alternatives urgently.
Moreover, the Minister lauded the ongoing regional cooperation within SADC, emphasizing that Eswatini stands to benefit immensely from benchmarking against the best practices of neighboring countries like South Africa, Namibia, and Botswana. Through collaborative efforts, Eswatini can adopt proven strategies for road safety management and funding sustainability, thereby reducing the strain on the SMVA Fund.
The question that arises is: How can Eswatini balance the need for a sustainable SMVA Fund with the rising costs of compensation and a growing number of road accidents? Minister Rijkenberg’s statements make it clear that the solution lies in a multi-faceted approach—one that integrates sustainable funding, enhanced prevention measures, and robust regional cooperation.
The time for action is now. As road accidents continue to claim lives and resources, the SMVA Fund’s sustainability will depend on the speed and effectiveness of reforms. The discussions at the SADC Road Accident Funds’ Meeting are an opportunity for Eswatini to lead the way in crafting innovative solutions for road safety and compensation.
By prioritizing sustainability and regional cooperation, Eswatini can transform the SMVA Fund into a resilient safety net that not only compensates victims but also prevents accidents, ensuring a safer and more financially secure future for all.
