SACU pays govt E5.9bn in six months

MBABANE – Eswatini received E5.9 billion from the Southern African Customs Union (SACU) during the first half of 2026/27.

The amount represents an increase of E700 million from the E5.2 billion received during the corresponding period last year.

The Mid-Year Budget Review shows that SACU receipts remain one of government’s largest sources of revenue.

For the full financial year, government expects SACU receipts to reach E11.7 billion.

This compares with E10.4 billion during 2025/26.

The projected increase of E1.3 billion provides additional revenue at a time when government faces competing expenditure demands.

However, the Ministry of Finance warns that reliance on SACU receipts exposes the national budget to developments beyond Eswatini’s control.

The revenue is determined by regional customs arrangements and economic activity among member states.

South Africa’s economic performance is particularly important because of its close trade and financial links with Eswatini.

Changes in regional imports, trade activity and commodity prices influence the customs revenue pool distributed among SACU members.

According to the review, South Africa’s economy is projected to grow by 1.1 per cent in 2026 before improving to 1.3 per cent in 2027.

The subdued outlook creates uncertainty about the future performance of regional customs revenue.

The ministry cautions that weaker economic activity and changes in import demand could affect both the level and timing of SACU distributions.

It consequently calls for prudent revenue forecasting and stronger domestic revenue mobilisation.

Government also intends to continue contributing to the SACU Stabilisation Fund.

The review identifies the fund as a mechanism for smoothing fluctuations in customs revenue rather than financing permanent expenditure commitments.

This distinction is important because SACU receipts can change substantially between financial years.

A temporary increase in revenue may support expenditure in the short term but does not guarantee that the same resources will be available in subsequent years.

The ministry therefore warns against allowing spending commitments to become dependent on uncertain revenue.

Government plans to strengthen domestic collections through improved compliance, digitalisation and efficiency gains at the Eswatini Revenue Service.

These measures are intended to reduce the country’s exposure to fluctuations in externally determined revenue.

The review also identifies the need to maintain financial buffers to absorb potential shortfalls.

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