Eswatini’s Minister of Finance, Hon. Neal Rijkenberg, has revealed key adjustments to the VAT Act, effective from January 1, 2026, aimed at reducing the cost of essential health and hygiene products. These changes come alongside the launch of the national fintech strategy, which seeks to enhance financial inclusion and leverage technology to tackle corruption in government operations.
The VAT reforms will see a reduction in taxes on several medical and hygiene products. Items such as syringes, bandages, reusable nappies, and sanitary products like pads and tampons, which were previously subject to VAT, will now be exempt. This move is intended to ease financial burdens on citizens, especially those from lower-income households. On the other hand, VAT will now be applied to condensed milk, which could lead to higher prices for this item, while fresh maize imports will see a reduction in price as VAT is removed.
Minister Rijkenberg also addressed the expected payment dates for civil servants in December, with permanent staff scheduled to be paid on the 20th and contract staff on the 23rd. An early payment in January will be made to assist civil servants with school fees.
The Minister also discussed efforts to streamline government processes, with a focus on using technology to curb corruption. One such initiative involves the introduction of an Integrated Financial Management Information System (IFMIS), a paperless platform that will track financial transactions across all government ministries. The system aims to improve transparency, reduce delays in approvals, and prevent fraudulent activities.
Additionally, government vehicles have been fitted with advanced tracking systems that monitor fuel usage, driving behavior, and maintenance, resulting in a 40% reduction in fuel costs. These measures are part of the government’s broader strategy to use digital solutions to improve accountability and governance.
Rijkenberg also announced the appointment of Kanga Zio Mabuza, the current Principal Secretary for Tourism, as the new CEO of the Road Safety Fund (SMVA) for a one-year term. Mabuza’s appointment follows recent resignations at the organization, and her leadership is expected to address key challenges.
In health sector reforms, the Minister noted the ongoing efforts to establish a stand-alone Central Medical Stores (CMS) entity, which will strengthen the management and distribution of medicines across the country. This initiative is supported by the Global Fund and aims to bridge gaps in the healthcare system by enhancing control over medical supply chains.
With these developments, the Minister concluded his speech by calling on all citizens to support the government’s digital transformation efforts, despite the resistance these changes might face. He urged everyone to contribute to building a more transparent and accountable government.
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