The latest edition of the Eswatini Economic Update launched by the World Bank Group emphasizes the urgent need for Eswatini to embrace digitalization, improve public finance management, and address structural economic weaknesses to sustain long-term growth. The report, titled Harnessing the Potential of Digital Technologies for Eswatini’s Growth and Job Creation, analyzes the country’s recent economic performance and offers projections and policy recommendations for the medium term.
Eswatini’s economy is expected to grow by approximately 5% in 2025, driven by a mix of favorable policy measures and increased public and private investments. However, maintaining this growth and making it more inclusive remains a significant challenge. The country must diversify its economy and strengthen financial systems to avoid overreliance on volatile revenue sources.
The report identifies digital transformation as a central pillar of Eswatini’s development. With unemployment at 35.4% and structural inefficiencies in sectors like agriculture, trade, and services, digitalization offers a pathway to improved productivity, job creation, and increased domestic revenues. This aligns with Eswatini’s 2024–2028 digital strategy, which aims to reduce dependence on Southern African Customs Union (SACU) transfers.
Despite widespread 4G network coverage reaching 95% of the population, internet usage remains limited to 58%, largely due to high data costs. At 3.47% of GNI per capita, data costs exceed regional affordability benchmarks. The report recommends telecom sector reforms, including restructuring state-owned enterprises, adopting open access policies, and updating regulations to encourage competition and lower prices.
To maximize digital adoption and innovation, the report emphasizes the importance of supporting small and medium enterprises, many of which face barriers to digitalization. It calls for investments in digital skills training, entrepreneurship development, and better linkages to public procurement systems to stimulate job creation and technological advancement.
Realizing the full benefits of digital transformation will require coordinated reforms across government sectors. Key priorities include restructuring the Eswatini Posts and Telecommunications Corporation, building digital public infrastructure such as a national digital ID system, and launching a National Digital Skills Action Plan that matches labor market demands.
The World Bank underscores three strategic policy pillars to unlock Eswatini’s digital potential: enhancing macroeconomic resilience, stimulating private-sector-led job creation, and improving public service delivery through efficient spending. If implemented effectively, these measures will position Eswatini to achieve more inclusive, sustainable economic growth driven by digital innovation.
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