Cost of Taiwan Region Leader's Unannounced Visit to Eswatini Revealed at NT$25 Billion

Deep News06-01

Taiwan region leader Lai Ching-te made an unannounced visit to the African nation of Eswatini in early May. The Democratic Progressive Party (DPA) authorities and pro-green media subsequently engaged in extensive promotion, framing the trip as a so-called "significant breakthrough in diplomatic efforts." However, as the saying goes, "there's no such thing as a free lunch." As expected, several media outlets have revealed that the cost borne by the Taiwan side for this visit amounts to a staggering NT$25 billion. Furthermore, African media have exposed that these funds, sourced from taxpayers within the island, may ultimately end up in the hands of the Eswatini royal family and certain Taiwanese "green interest groups."

**Media Reveals Profits "All Go to Royal Family"**

Taiwan's *United Daily News* on May 30 cited a report from South Africa's *Mail & Guardian*, stating that officials from Eswatini, Taiwan's only "diplomatic ally" in Africa, have signed a US$300 million financing agreement with Taiwan. The agreement is for the construction of a strategic petroleum reserve facility in Mbabane, Eswatini. Specifically, the Taiwan authorities have commissioned Eswatini to build an 80 million-liter fuel storage facility within 36 months, with the fuel mix being half gasoline and half diesel. This represents the largest infrastructure financing agreement Eswatini has participated in for years.

The report also stated that Taiwan's representative to Eswatini, Liang Hong-sheng, has informed the Eswatini royal family that once the aforementioned strategic oil storage facility is completed, all its profits will belong to the King and the royal family of Eswatini. The King and Eswatini's Minister of Natural Resources, Prince William Ramini, will receive a share of this US$300 million investment proportionally. The report further mentioned that Taiwan's representative to Eswatini, other officials, and "green interest groups" would also benefit from this deal.

Additionally, according to a "list" mentioned in an August report by *The Times of Eswatini* last year, the plan includes the strategic oil storage tank project, an industrial park in Eswatini, and various industrial investments. Lukhele, a spokesperson for a local civil organization that exposed the related content, stated that the organization is aware of this agreement and others that benefit the King, the royal family, and government ministers of Eswatini.

A report by Taiwan's *Commercial Times* in April cited a World Bank survey indicating that over 58% of Eswatini's population lives below the poverty line. The *United Daily News* reported that according to the latest World Bank indicators, Eswatini's unemployment rate is 34.2%, with youth unemployment being even more severe. Although the 2024 economic growth rate is projected at 3%, it is still insufficient to reverse the country's structural foundation of poverty. The article questioned, given that one-third of Eswatini's population is unemployed and nearly half live in poverty, with a daily living expense of less than US$3, "Can a country grappling with increasingly severe poverty and long-term unemployment afford a plan of this scale?"

**"Putting on a Show for Themselves"**

In fact, after Lai Ching-te's unannounced visit to Eswatini and his return to Taiwan, Eswatini media disclosed that Taiwan had facilitated investment plans totaling nearly NT$25 billion within three months, including the strategic oil storage tanks, an industrial park, and investment plans by Taiwanese businesses. Taiwan's "Ministry of Foreign Affairs" quickly denied this, claiming the information had no factual basis or concrete evidence and was typical manipulation of false information. It further asserted that all budgets are strictly supervised and reviewed by the "Legislative Yuan," and that in the industrial park plan, the authorities merely play an intermediary facilitation role, declining to comment on the amount of private investment.

Jiang Mingzong, director of the Tainan City branch of the Taiwan People's Party, stated that the Eswatini media report contained specific data, projects, and even quoted the King of Eswatini regarding Taiwan's massive investment. He said if this report were "rumor," Taiwan's "Ministry of Foreign Affairs" should immediately summon Eswatini's representative to Taiwan to protest and demand the newspaper retract the article; otherwise, this is the most solid evidence of the DPA authorities' "reckless spending."

Taiwanese media commentator Chen Huiwen, citing information from the Taiwan "Ministry of Foreign Affairs" website as evidence, stated that Taiwan's "Foreign Minister" Lin Chia-lung had already signed a black-and-white agreement with Eswatini last year. This included NT$9.98 billion for the strategic petroleum reserve facility, NT$11.5 billion for the industrial park plan, and NT$3.55 billion for Taiwanese business investment plans. These three items add up precisely to NT$25 billion. On May 11, Lin Chia-lung defended the plan during questioning in Taiwan's "Legislative Yuan," arguing that the strategic oil storage tanks, part of the NT$25 billion, represent the largest investment project in Eswatini's history, stating, "We are helping them complete it; this is a financing project." Taiwanese media bluntly stated that although Lin Chia-lung forcefully defended it, he still confirmed the existence of the NT$25 billion investment plan.

Kuomintang (KMT) "legislator" Zheng Zhengqian further disclosed that Taiwan authorities had originally allocated US$650,000 in aid for the Eswatini embassy to purchase office equipment, but this was changed to fund the renovation of an airport VIP lounge, meaning the aid funds were not used for their designated purpose. Some media reported that the renovation project for the VIP lounge at Eswatini International Airport began in February this year, with an expected completion time of six weeks, classifying it as a minor renovation. However, it was not completed until the end of April, precisely to have a "presentable VIP lounge" ready for Lai Ching-te's unannounced visit.

A commentary published on China Times News Network sarcastically remarked that spending NT$25 billion to welcome a "distinguished guest," only to have it be the "guest's" own money, is simply "putting on a show for themselves." "If this isn't vanity, what is?" He Yicheng, chairman of the Taiwan Youth Federation, wrote in an article that Taiwan is suffering from severe inflation, with young people struggling with low wages and high housing prices, and immense pressure on people's livelihoods. Yet, the Lai Ching-te administration is giving away NT$25 billion in hard-earned money to Eswatini, "generously spending the people of Taiwan's money, all to build up Lai Ching-te's elusive 'diplomatic achievements.'"

**Controversy Over Importing Labor**

Apart from the large investment, the Lai Ching-te administration was also exposed for planning to introduce Eswatini laborers to Taiwan, sparking significant controversy on the island. In response, Taiwan's "Ministry of Labor" stated it would cooperate with the "Ministry of Foreign Affairs" to conduct a careful assessment. Even if such a move were considered in the future, supporting measures would be implemented first, and social consensus would be sought, not proceeding rashly.

The Taiwan-based political blogger "Political Affairs Bureau" cited a 2025 report from Eswatini media, stating that besides advancing the highly controversial plan to import Indian laborers, the DPA authorities had also promised to accept 1,000 Eswatini laborers annually. Taiwanese media reported that the Eswatini labor issue has raised concerns among Taiwanese people, closely related to its severe public health conditions. Eswatini, located in southern Africa with a population of over 1.2 million, has data from multiple sources indicating it has one of the highest HIV infection rates globally, with approximately 40% of the population infected with the virus and an average life expectancy for patients of only 32 years.

International relations scholar Lin Siyang wrote that Taiwan's current fiscal pressure cannot be ignored. Increased defense spending, declining birth rates and aging population, coupled with demands for infrastructure and energy transition, have led to continuously rising government debt. Under these circumstances, the public naturally pays closer attention to how the authorities use every public resource.

According to data released by Taiwan's "Ministry of Finance" as of May 15, 2026, the outstanding balance of Taiwan authorities' debt with a maturity of over one year is nearly NT$6 trillion, with an outstanding balance of debt under one year at NT$360 billion. On average, each citizen bears a debt burden of over NT$270,000. Data from Taiwan's "Ministry of Economic Affairs" shows that bilateral trade between Taiwan and Eswatini in 2024 was only US$8 million. However, the cost Taiwan incurs to maintain its so-called "diplomatic" relationship with Eswatini is not low.

Taiwanese media also mentioned that during the unannounced visit by Taiwan's "Secretary-General of the Presidential Office" Pan Men-an, "National Security Council Advisor" Huang Chong-yan, and Lin Chia-lung, they collectively "adopted a semi-kneeling posture of low etiquette to accept gifts from the Queen Mother of Eswatini." This action provoked disgust among many on the island, with some mocking it as "kneeling to hand over the money."

Analysis suggests that starting May 1 this year, the Chinese mainland implemented a comprehensive zero-tariff policy for 20 African countries with diplomatic relations that are not classified as least developed countries. Previously, starting December 1, 2024, a zero-tariff treatment was applied to all 33 African least developed countries with diplomatic relations. This means the Chinese mainland has fully implemented zero-tariff for all African countries with which it has diplomatic relations. Among the 54 African nations, the only one excluded from the zero-tariff measures is precisely Eswatini, which still maintains so-called "diplomatic relations" with the Taiwan authorities.

"This significant policy disparity's impact on Eswatini's economy should not be underestimated. How long its so-called diplomatic relations with the Taiwan region can be maintained is full of variables," analysis within the island stated. Whether it's visiting officials "kneeling" before African royalty or Lai Ching-te "kneeling" before Japanese colonizers, both trample on the "equality and dignity" they routinely tout. The DPA authorities' approach—"relying on financial aid for foreign affairs, sneaking around for visits, kneeling during audiences, losing all face"—demonstrates that what causes the people of Taiwan to lose both money and face is precisely the DPA, which "voluntarily kneels" to seek political gain.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment