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SACU windfall: Government to focus on stabilising public finances

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Minister for Finance Neal Rijkenberg. (File pic)
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MBABANE – Minister for Finance Neal Rijkenberg says government has entered the year with a clear focus on stabilising public finances, driving economic activity and ensuring that the needs of emaSwati are met through timely payments and sound fiscal management.

Rijkenberg said the intention at the start of the year was to place finance at the centre of government operations, adding that this approach was critical in sustaining economic momentum and restoring confidence among suppliers, civil servants and the private sector.

He confirmed that the Southern African Customs Union (SACU) receipts for the current quarter were paid to Eswatini this week through the Ministry of Finance via the Central Bank of Eswatini.

He said the inflow of the funds would allow government to prioritise the settlement of outstanding payments, particularly to suppliers who had been waiting for some time.

The minister explained that government had already made progress towards reducing the backlog of unpaid invoices late last year. He said that in December, a significant number of suppliers were paid using resources secured from the African Development Bank (AfDB), as well as tax revenues collected during that period.

According to Rijkenberg, these interventions had eased pressure on both government operations and the private sector, with many businesses now largely up to date in terms of payments owed to them.

“Most suppliers are up to date, with only a few hundred million Emalangeni outstanding; however, that will be settled now with this quarter’s SACU money,” he said.

He added that the availability of the SACU receipts would enable government to normalise its payment cycles, which he said was important not only for service delivery but also for sustaining jobs and economic activity within the private sector.

Rijkenberg further said the issue of salaries for civil servants was also being addressed, noting that early wages were on track. He said government remained committed to meeting its obligations to workers, while at the same time managing its limited resources prudently.

In addition to settling outstanding payments, the minister said government was also looking at clearing delays on a number of projects that had stalled due to funding constraints. He revealed that government had raised US$15 million in funding, which was expected to be received before the end of January.

He said the anticipated funds would go a long way in ensuring that delayed projects resumed and that contractors and service providers were paid, allowing work to continue as planned.

“We are confident that money will bring our payments up to date in January. We will catch up on various payments and projects so that government can end the year in a good place from a project implementation perspective,” he said.

*Full article available on Pressreader*

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