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ESWATINI EXPECTING ABOUT 25% REDUCTION IN SACU RECEIPTS

By Qondile Ntiwane | 2020-06-21

ESWATINI is expecting about 25 per cent, if not worse percent, in Southern Africa Customs Union (SACU) Receipts in 2022.

This will be a result of the negative impacts presented by the novel coronavirus which has hit hard on the global economy.

Minister of Finance Neal Rijkenberg said during the presentation of the Central Bank of Eswatini 2020 Annual Monetary Policy Statement at the Royal Villas that there would be a definite impact on the SACU receipts due the pandemic.

Responding to a question on the impacts of COVID-19 on the SACU receipts, the minister explained that the effects of the pandemic would only be felt in 2022 due to the receipts being on a two-year roll.

“There will definitely be reductions on SACU receipts, especially because there is a downward train in Southern Africa. We are however fortunate that what we are getting this year will not affect us but we will definitely feel the pinch the year after next.

“We may not be 100 per cent sure how the impact will be but we are almost guaranteed that it will be around 25 per cent or if not worse from where we are sitting at the moment. The impact is there but we are hopeful that things will balance up once the economy recovers,” he said.

The minister further noted that government was working hard to deal with the effects of the impact and were already planning ahead.

“We are speaking to financial institutions to see what can be done for a three-year loan plan as opposed to a single year loan in a bid to sort out the crisis,” he said.

On another note the minister said government had accelarators in addition to the National Strategic Roadmap which are aimed at boosting the economy post COVID-19.

He further applauded the private sector, which he said has been brilliant in the fight against the pandemic. “I am very happy with the efforts of the private sector and also proud of the way the sector and government have been working together during these trying times. I am confident that the collaboration will have a positive impact on the country’s economy post COVID,” he said.

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