Africa-Press – Eswatini. The fluctuating exchange rate has hit hard on logistics businesses which transport goods via the country’s border posts.
This is because all foreign registered commercial vehicles entering the country through Lomahasha and Mhlumeni border posts will now be expected to pay E1 850 from next month. This was announced by Eswatini Revenue Service Commissioner General Brightwell Nkambule yesterday.
Nkambule said part IV of the Finance Act of 2019 provides for the collection of the Road Toll fee (as per the Road Traffic Act of 2007) on foreign registered commercial vehicles entering the country through Lomahasha and Mhlumeni borders of an amount that is equivalent to US$100.
According to the Act, all foreign registered vehicles entering the Kingdom of Eswatini through Mhlumeni or Lomahasha borders with or without a trailer, the fee will be the equivalent of US$ 100 with an added US$100 for any additional trailer.
This fee is determined on a quarterly basis and published on the ERS website and at the affected borders.
“This amount is accordingly determined on the basis of the average rate of exchange between the Lilangeni and the United States Dollar, there have been significant changes on the rate of exchange since the last review that was implemented with immediate effect from December 2022,” Nkambule stated.
He said with effect from August 1, the road toll fee shall be E1 850. “Subsequent changes to this amount will be determined in line with the fluctuation of the exchange rate between the currencies and notified to stakeholders,” the commissioner general stated.
A local commercial vehicle, pulling a locally registered trailer pays E50. However, if the trailer is foreign registered, the fee is E50 plus the equivalent of US$ 100 for the trailer. Market rates yesterday indicated that US$1 was equivalent to E18.67.
A report released by the Ministry of Economic Planning and Development last week indicated that the Lilangeni/Rand depreciated by 10.7 per cent on average against the US Dollar, whilst appreciating by 0.7 per cent and 1.6 percent against the Pound and the Euro, respectively.
According to the report, the Rand/Lilangeni started by trading at E16.37 before going to E18.67 on average to the US Dollar, pressured by the on-going structural challenges in the South African economy, which resulted in the downgrading of the South African economy by the international rating agencies.
In was stated that existing economic conditions indicate that the local currency will remain strained in the short-term.
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