THERE has been a marked month-on-month improvement in the kingdom’s provisional gross official reserves, which rose to E10.9 billion in March.
This represents a robust 14.2% increase from February and an 18.9% rise on the same period a year earlier.
This is according to the Central Bank of Eswatini February/March 2026 monthly statistical report.
The reserves can now cover 2.5 months of imports, up from 2.2 months in February. This means that the country has a bit more money saved to pay for goods coming from other countries.
This latest increase comes after some ups and downs in recent months. Reserves had grown well towards the end of 2025 but then fell slightly. The March figures are encouraging, showing how the country’s external money position is getting stronger again.
Reserves’ import cover also strengthened, climbing to 2.5 months in March from 2.2 months the previous month. While still some way below the internationally preferred three-month benchmark, the improvement signals a welcome easing of short-term external liquidity pressures at a time when the lilangeni remains pegged to the South African rand.
The latest monthly statistical release highlights a degree of resilience in the kingdom’s external position. The 14.2% monthly gain comes after a period of volatility, where reserves had peaked at E15.5 billion in November 2025 before experiencing drawdowns linked to net foreign-currency outflows and higher import demand.
Year-on-year growth of 18.9% nevertheless points to an underlying upward trajectory, supported by a combination of stable Southern African Customs Union (SACU) inflows, export remittances and external project financing.
In his 2026/27 budget speech delivered to Parliament on February 27, Finance Minister Neal Rijkenberg highlighted government’s deliberate focus on reserve accumulation as a cornerstone of macroeconomic stabilisation.
“Over the past several years, we prioritised stabilisation, strengthening reserves, improving debt management, upgrading our credit rating, firming up tax administration, and restoring investor confidence,” he told lawmakers.
“That foundation is now bearing fruit. This budget marks a transition from stability to acceleration.”
The minister noted that reserves had averaged E11.5 billion between April and November 2025—up from E10.2 billion a year earlier, and reached a high of E15.5 billion in November, aided by stable SACU receipts, higher export earnings and the central bank’s inaugural purchase of monetary gold in July 2025 for diversification.
Import cover had improved to an average of 2.8 months over that period, with a peak of 3.6 months.
He projected further support from rising SACU receipts in the current financial year, with over E300 million being allocated to the SACU Stabilisation Fund.
The minister’s earlier 2025 budget address had struck a more cautious note, acknowledging that while reserves had improved markedly in 2024/25, import cover had slipped to an average of 2.5 months amid a sharper rise in the import bill.
He warned at the time that reserves would remain under pressure in the short to medium term owing to anticipated SACU revenue declines and persistent import growth.
The latest central bank data therefore presents a balanced picture. The 14.2% monthly jump and improved import cover demonstrate that the authorities’ fiscal discipline and external inflows continue to deliver results, even as fluctuations reflect the challenges of managing an open, import-dependent economy within a currency union.
With SACU receipts budgeted to rise in 2026/27, analysts will be watching whether this momentum can be sustained and whether import cover can be pushed comfortably above the three-month threshold.
