By Bahle Gama
Minister of Finance Neal Rijkenberg says that the recent decline in Southern African Customs Union (SACU) receipts has highlighted the pressing need for Eswatini to prioritize and accelerate its industrialisation efforts to bolster domestic revenue collection.
SACU receipts, which historically contribute significantly to Eswatini’s national revenue, have become increasingly unreliable due to fluctuating regional trade volumes, economic downturns, and external market pressures.
On January 17, 2025, during a press conference, Rijkenberg announced a 20.4% decrease in SACU receipts due to the hike in levies for importing certain vehicles, as well as from channelling fuel suppliers to import most of the commodities from South Africa instead of Mozambique.
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The receipts revealed that more than 50 per cent of the national budget is used by the government to construct roads, build hospitals, buy medication, and pay grants and civil servants’ salaries, among many other things.
The Minister said the reduction in SACU receipts for the new year is primarily attributed to lower-than-expected collections in the Common Revenue Pool (CRP) during the 2023/24 fiscal year.
The decrease was also due to a reduction in revenues from specific excise duties, particularly on cigarettes and tobacco products, as well as a contraction in nominal imports into the union.
On Friday night, January 24, 2025, speaking during the commemoration of International Customs Day, Rijkenberg said this volatility underscores the urgent need for the country to reduce its dependence on SACU transfers and focus on building a resilient, self-sustaining economy, therefore accelerating industrialization is a key strategy in achieving this goal.
Over the years, the respective Ministries in Eswatini have emphasized that by investing in sectors such as manufacturing, agro-processing, and value-added industries, Eswatini can create new streams of revenue while simultaneously generating employment opportunities and enhancing export competitiveness.
Therefore, industrialization will also allow the country to broaden its tax base, ensuring more consistent and sustainable revenue collection.
Minister Rijkenberg said that industrial growth can contribute to increased trade activity within the region, fostering partnerships and positioning Eswatini as a critical player in the Southern African Development Community (SADC) market.
“Therefore, to achieve these outcomes, the government must focus on infrastructure development, ease of doing business, skills training, and innovation-driven policies to attract both local and foreign investment.
The decline in SACU receipts serves as a wake-up call for Eswatini to urgently advance its industrialization agenda and build a more diverse and stable economic foundation for the future,” he said.
The Minister noted that customs play a pivotal role in this regard, contributing significantly to Eswatini’s fiscal stability and long-term economic resilience.
He reiterated the critical role played by customs beyond revenue, adding that all stakeholders, with the collective efforts of ERS, the government and the private sector can build a resilient and prosperous Eswatini.
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“Beyond securing the critical revenue that drives our national development, ERS plays a fundamental role in connecting local businesses to reach markets beyond our borders,” said Rijkenberg.
The Minister added that ERS working with the National Trade Facilitation Committee (NTFC), facilitates trade by simplifying and digitalizing processes, enabling compliance, and consequently creating opportunities for Eswatini businesses to grow and thrive.
Further, through trade blocs such as SACU, SADC, COMESA, and the African Continental Free Trade Area (AfCFTA),” ERS is actively helping locally produced goods to access these regional and international markets with ease.”
