Mbabane- Eswatini is steadily rebuilding its Southern African Customs Union (SACU) Stabilization Fund after withdrawing E1 billion last financial year to cushion the economy from declining customs revenues.
Minister of Finance Neal Rijkenberg says the fund, which was established to protect the country against fluctuations in SACU receipts, is expected to grow to nearly E2 billion by the end of the current financial year.
The stabilization fund was used during the 2025/26 financial year when government faced a projected budget shortfall triggered by lower SACU revenue inflows.
At the time, the fund held approximately E2.5 billion, allowing government to draw E1 billion without disrupting public spending programmes.
Addressing the nation on this week’s Finance in Focus, Rijkenberg said the withdrawal enabled government to continue financing critical services and infrastructure projects while avoiding excessive borrowing or severe expenditure cuts.
“The fund did exactly what it was designed to do. It allowed us to absorb a revenue shock without destabilizing government operations,” he said.
Following the drawdown, the fund started the current financial year with a balance of E1.5 billion. Improved SACU collections have since placed the reserve on a recovery path.According to the Minister, Eswatini received E11.7 billion in SACU revenue this year, exceeding the E11.4 billion budget estimate.
The additional E350 million generated above projections will be transferred directly into the stabilization fund, together with interest earnings.The recovery of the fund comes as government implements an expansionary E36.92 billion budget for the 2026/27 financial year, aimed at supporting economic growth and national development.
Rijkenberg also called on businesses and individuals to declare all imported goods at border posts, noting that accurate import records play a critical role in determining Eswatini’s share of SACU revenue.
He explained that the SACU revenue-sharing formula allocates a significant portion of customs revenue based on the volume of imports recorded by member states.“Every declaration made at the border contributes to the country’s SACU earnings.
When imports are not declared, Eswatini loses out on revenue that could otherwise support public services and infrastructure development,” he said.
Looking ahead, the Minister expressed confidence that SACU receipts will continue to improve as Eswatini gradually increases its share of regional trade within the customs union.The anticipated growth in the stabilization fund is expected to strengthen the country’s fiscal resilience and provide a financial cushion against future revenue volatility.
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