BY MBONGENI NDLELA
MBABANE – Eswatini’s proactive financial planning is set to cushion the economy from challenges posed by a reduction in SACU receipts.
Minister of Finance Neal Rijkenberg announced that while SACU revenues will decline by E2.6 billion in the upcoming financial year, the country’s SACU Stabilization Fund will provide critical support.
“We anticipated the possibility of revenue fluctuations, which is why we established the SACU Stabilization Fund,” Rijkenberg explained. “This fund, now holding over E2.4 billion, will help maintain economic stability and ensure continued progress.”
The fund, which functions as a financial “shock absorber,” was built through annual contributions, with E1.5 billion added this year alone. Its utilization will play a key role in the 2025 budget to offset the impact of reduced SACU receipts.
Rijkenberg emphasized that while SACU remains an important revenue source, the government is focused on diversifying income streams. “Our goal is to strengthen domestic revenue generation, reduce reliance on SACU, and create a more self-reliant economy,” he said.
The minister highlighted that the Eswatini Revenue Service (ERS) is performing well, meeting tax collection targets through efficient operations and improved public engagement. “By broadening the tax base and ensuring compliance, we’re creating a more equitable system that supports national development,” Rijkenberg added.
As Eswatini navigates these financial challenges, the proactive measures taken by the Ministry of Finance demonstrate resilience and forward-thinking, ensuring that the country remains on a path of sustainable growth.
