Eswatini projects E10.4 Bln in SACU receipts
Minister of Finance Neal Rijkenberg delivering his midterm budget review report in Parliament on Wednesday
By Thokozani Mazibuko
Eswatini is set to receive an estimated E10.4 billion in Southern African Customs Union (SACU) receipts for the 2025/26 financial year, a slight decline from the previous year, according to the Midterm Budget Review Report delivered by Minister of Finance Neal Rijkenberg on Wednesday.
The minister said SACU receipts remain the largest contributor to the country’s total revenue, with collections at E5.20 billion at mid-year, compared to E6.53 billion during the same period in the 2024/25 fiscal year.
However, Rijkenberg cautioned that while the receipts form a critical pillar of Eswatini’s fiscal framework, their volatility and external determination pose a persistent risk to the country’s financial stability.
“SACU revenues remain volatile and externally determined, posing a risk to fiscal stability,” Rijkenberg told Parliament
. “To mitigate this volatility, Government remains committed to building fiscal buffers through allocations to the SACU Stabilization Fund, aimed at smoothing the impact of revenue fluctuations in future years.”
The SACU receipts, derived from a shared customs and excise pool among Eswatini, South Africa, Botswana, Namibia, and Lesotho have historically played a decisive role in shaping the country’s budget performance.
The projected E10.4 billion, though slightly lower than the previous fiscal year, still represents a major lifeline for Eswatini’s revenue base.
Economists have long warned that Eswatini’s reliance on SACU transfers leaves the country vulnerable to regional trade slowdowns and global market shocks.
Rijkenberg noted that the moderation in regional trade and customs pool performance this year explains the dip in projected receipts.
Despite the decline, the Finance Ministry maintains that prudent fiscal management and continued diversification of domestic revenue sources remain central to Eswatini’s medium-term fiscal strategy.
“We are making deliberate efforts to strengthen domestic resource mobilization and improve the efficiency of public spending,” Rijkenberg added.
The government’s renewed focus on the SACU Stabilization Fund, a reserve meant to cushion the economy from unexpected revenue drops, is expected to play a key role in managing future fiscal shocks.
Analysts say the move is a prudent one, especially as Eswatini navigates a challenging regional economic environment marked by slower growth and fluctuating customs inflows.
The Midterm Budget Review also reaffirmed the government’s broader economic objectives, including fiscal consolidation, improved public financial management, and investment in productive sectors to stimulate growth and employment.
As SACU receipts continue to dominate the fiscal landscape, Eswatini’s ability to manage their unpredictability will be critical in determining the country’s economic resilience in the coming years.
