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E4.8bn offshore transfers expose systemic tax evasion

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Eswatini Revenue Service Commissioner General Brightwell Nkambule (behind) and ERS Director of Communications and Marketing Ntobeko Dlamini. (Courtesy pics)
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EZULWINI – The Eswatini Revenue Service (ERS) has launched investigations into what it describes as systematic tax evasion.

This is reportedly linked to E4.8 billion transferred out of the country within a 12-month period, after discovering that only E33 million of the amount was declared for tax purposes.

Speaking at the Tax Compliance Certificate (TCC) briefing session held on Monday at ERS Headquarters in Ezulwini, ERS Commissioner General Brightwell Nkambule said the bulk of the offshore transfers involved entities not registered for tax, entities filing nil returns, and entities declaring figures inconsistent with the amounts transferred.

“This is not a marginal compliance issue. It is systemic tax evasion,” Nkambule said, adding that the matter could not be resolved by ERS alone and would require deep collaboration with financial institutions and other ecosystem partners to stem revenue leakages and enforce compliance.

The Tax Compliance Certificate (TCC) briefing session follows the presentation of what has described as a transformative, pro-growth 2026/27 National Budget presented by Finance Minister Neal Rijkenberg last Friday.

The budget totals E31.90 billion, with E31.18 billion expected to be raised through compliance with tax and customs laws. Of this, E19.48 billion must come from domestic taxes, while E11.7 billion is projected from SACU receipts.

“This is not an assignment for ERS alone. It is an assignment for the entire nation,” Nkambule told stakeholders, stressing that revenue mobilisation planning could not wait beyond the Budget Speech. He praised the “Your Taxes at Work” campaign for making compliance tangible by showcasing roads, clinics, irrigation schemes, schools and electrification projects funded by tax revenues.

*…

It’s not hostility toward business – minister

EZULWINI – Finance Minister Rijkenberg said the time for policy declaration had passed and the country was entering a phase of disciplined action.

He said this is anchored on the principle of Agape Love—Love in Action for Economic Transformation.

He warned that failure to strengthen compliance would force Government to borrow, shifting today’s costs onto future taxpayers. “Every loan taken must be repaid with interest—by our children and grandchildren,” he said, adding that domestic revenue mobilisation was essential to protect economic sovereignty.

The minister placed Eswatini’s tax gap at about E4 billion annually, noting that revenue lost to non-registration, nil returns, under-declaration, and repeated company closures and reopenings deprives the country of funds needed for clinics, roads, education and youth empowerment. He also highlighted the unfair competition faced by compliant businesses.

Crucially, Rijkenberg urged the media to communicate clearly that enforcement is not anti-business. “This is not hostility toward enterprises. It is not anti-investment. It is about fairness, protecting honest taxpayers and building a level playing field.”

*Full article available on Pressreader*

Minister for Finance Neal Rijkenberg.
Minister for Finance Neal Rijkenberg.

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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