Minister of Finance Neal Rijkenberg has formally signed a financing agreement with the Export-Import Bank of the Republic of China (Taiwan) to support the construction of Eswatini’s first Strategic Oil Reserve facility.
This landmark project will enable the kingdom to establish a national fuel reserve, significantly enhancing energy security and ensuring resilience in the face of global supply disruptions.
The signing ceremony took place in Taiwan yesterday, solidifying the construction of the E5.2 billion oil reserve to be constructed at Phuzamoya, Siphofaneni.
The minister had indicated that after signing the agreement government will wait for the funds to be released.
When the project kicks off, local contractors will be prioritised in the procurement processes.
Both the House of Assembly and the Senate unanimously supported the loan Bill for the major national project which is expected to create up to 800 direct jobs and boost economic growth. The loan, sourced from Taiwan, was praised by lawmakers for strengthening longstanding diplomatic ties and aligning with His Majesty King Mswati III’s vision of achieving first world status for Eswatini.
Moreover, Eswatini is also planning to establish an exclusive Taiwanese industrial park, expected to generate over 10 000 jobs within the next three to five years.
The announcement came during a high-profile business seminar at the Shangri-La Far Eastern Plaza Hotel in Taipei, where Minister of Commerce, Industry and Trade Manqoba Khumalo, accompanied by a delegation of Eswatini officials, met with eager Taiwanese investors.
The delegation includes the ministers of finance, foreign affairs and international co-operation as well as public works and transport , and other key government officials.
Khumalo said the industrial park represented a new chapter in Eswatini’s bilateral relations with Taiwan.
“We have already identified 158 hectares of land at Pocweni near the Royal Science and Technology Park for phase one, with plans to expand to 500 hectares as the project develops,” he said.
The initiative builds upon the momentum generated by recent diplomatic exchanges, including the visit of Taiwan’s Foreign Affairs Minister Lin Chia-lung to Eswatini in April 2, where he met the king.
The project also followed a successful investment forum held at Mountain View Hotel, where initial discussions between Taiwanese and Eswatini business leaders laid the groundwork for this ambitious venture.
The proposed industrial park will benefit from Eswatini’s Special Economic Zone (SEZ) designation under the SEZ Act of 2018, offering investors competitive incentives and facilitating export-oriented growth. The location’s strategic positioning provides access to major import and export routes, including highways to South Africa and Mozambique, and railway connections to key ports.
This development comes on the heels of Minister Khumalo’s recent participation in the Japan-Eswatini Business Forum Expo 2025 in Osaka, where Eswatini showcased its investment potential to the global market
“The establishment of this industrial park demonstrates our commitment to fostering international partnerships and creating sustainable employment opportunities for our people,” minister Khumalo added.
