The Government of Eswatini has started 2026 on a stable financial footing following the receipt of its Southern African Customs Union (SACU) revenue allocation, which has significantly improved cash flow and enabled the settlement of outstanding supplier payments.
For the 2025/26 financial year, Eswatini is expected to receive about E10.4 billion in SACU receipts, representing a 20.4 percent decrease from the E13.06 billion received in the 2024/25 financial year. Of the current allocation, E5.2 billion has already been paid out to the government, with E2.6 billion received last week.
Minister of Finance, Neal Rijkenberg, confirmed that the SACU funds were received last week and have already been deposited into the Central Bank of Eswatini, allowing the government to continue meeting its short-term financial obligations.
“The SACU money for the quarter has just landed at the Central Bank, and we are now busy spending it, mainly to catch up on outstanding suppliers,” Rijkenberg said during the latest Finance in Focus episode.
He explained that most supplier payments were already brought up to date in December 2025, following funding inflows from the African Development Bank (AfDB) and improved tax collections. However, a remaining balance amounting to a few hundred million Emalangeni is now being cleared using the SACU funds.
According to Rijkenberg, the government has also utilized Central Bank advances to manage its wage bill efficiently, ensuring that civil servants’ salaries for January and the remainder of the quarter are fully funded.
“We are in safe territory with salaries. We already have the money for wages, and there is no problem at all with that, even for the rest of the quarter,” he said.
Beyond SACU revenues, Rijkenberg disclosed that the government has secured US$50 million (approximately E820 million) from the OPEC Fund for International Development, with the funds expected to be disbursed before the end of January.
“We have raised $50 million from the OPEC Fund, and that money will come in before the end of January,” he said.
According to the Minister, the OPEC Fund financing will play a critical role in reducing arrears and accelerating the implementation of stalled capital projects across various sectors.
“That funding will really bring us up to date with our outstanding payments in general as government and make sure projects catch up, so that we end the year in a good place from a project implementation perspective,” Rijkenberg said.
He acknowledged that while some development projects have experienced delays due to funding constraints, the combined effect of SACU revenues, AfDB support, improved tax collections, and the forthcoming OPEC Fund injection has significantly improved the government’s overall fiscal position.
The improved liquidity, he said, is expected to restore confidence among suppliers, contractors, and development partners, while supporting smoother government operations as the country enters a critical budget preparation period for the 2026/27 financial year.
“From a cash flow point of view, in general, things are positive. The year is starting well,” Rijkenberg said.
He expressed optimism that 2026 will mark a recovery year for public sector operations, underpinned by improved financial management and stronger project execution.