By Manqoba Khumalo, Minister of Commerce, Trade and Industry, Eswatini
The Kingdom of Eswatini has set itself an ambitious target to accelerate the pace of the country’s economic growth by 12% per annum by the end of the 2029 fiscal year. Achieving this lofty goal will be no small achievement for a country which, by global standards, boasts a small economy and a population of just 1.2 million people.
However, punching above its economic weight is nothing new for Eswatini. Supported by both domestic and foreign demand, Eswatini has had a strong post-pandemic economic recovery, averaging 5.3% growth from 2021 to 2023 and 4.6% in 2024, comparing favourably with much larger economies. Since 2019, government has made good progress in reducing the fiscal deficit and implementing fiscal adjustment measures.
The government’s conviction that Eswatini’s economic prospects are favourable is mirrored by the World Bank, which maintains that rising external demand will continue to drive manufacturing and other exports. Eswatini’s economy is primarily based on agriculture, industry and manufacturing. The World Bank and the government of Eswatini recently launched a review highlighting ways to make fiscal policy more efficient and effective. The review aims to support Eswatini to enhance the efficiency and effectiveness of public spending and revenue mobilisation to drive sustainable and inclusive economic growth.
Government has also initiated a review of its procurement system to eliminate bottlenecks and ensure more cost-effective service delivery. In addition, government has implemented initiatives, including the International Public Sector Accounting Standards (Ipsas) and an Integrated Finance Management and Information System (Ifmis), to enhance financial reporting and cash management.
Eswatini’s improvements in fiscal management and effective policy implementation resulted in Moody’s Investors Service raising Eswatini’s long-term local-currency and foreign-currency issuer ratings from B3 to B2 in November 2024. Moody’s expects debt to stabilise to around 40% of GDP.
A compelling investment destination
As an investment destination, Eswatini offers a compelling value proposition. Strategically situated close to major South African and Mozambican ports, the country offers convenient export opportunities, sound infrastructure and logistics networks, and a highly literate workforce. A gateway to Africa, it offers easy access to the Southern African Development Community (SADC) market with membership of the Southern African Customs Union (SACU), the African Continental Free Trade Area (AfCFTA), the Common Market for Eastern and Southern Africa (COMESA), the African Growth and Opportunity Act (AGOA), and economic cooperation agreements with Taiwan and the European Union, amongst others.
In 2024, the African Development Bank (AfDB) approved a $140 million loan (approximately R2.5 billion) to Eswatini. The funding will be aimed at infrastructure development, in particular, improving road infrastructure to enhance connectivity and support socio-economic development.
A number of additional projects are currently underway to help drive growth. A World Bank-financed project, for example, is helping Eswatini to achieve universal energy access by 2030 by helping us to improve access to energy and greater economic opportunities for those citizens who still lack electricity access. Technology company Google is working with government to boost our digital economy. In addition to looking into ways that Google’s unique technologies can further government’s ‘In Your Hand’ initiative and improve public service delivery through advanced technologies, the partnership also aims to empower young people with digital skills.
Reforms for inclusive and sustainable growth
To ensure inclusive, sustainable and resilient economic growth, Eswatini has implemented several policy and regulatory reforms in recent years to enable a business-friendly environment. This is a key element of our bid to attract greater levels of both domestic and foreign direct investments.
To showcase the value of Eswatini as an investment and trade destination, we are hosting the Eswatini Investment Conference, under the auspices of the Eswatini Investment Promotion Authority (EIPA), on 14 and 15 May 2025. Themed ‘Creating opportunities for rapid economic transformation’, the conference will provide a platform to announce strategic and high-impact projects, many of them driven by the private sector who are increasingly taking advantage of the investment opportunities available in our country.
What has become very apparent in recent years is that Eswatini, despite its modest size, is economically resilient and has significant potential for strategic growth. Through prudent fiscal management, targeted infrastructure development and proactive engagement with international partners, we are laying a solid foundation for our ambitious growth targets. A commitment to creating a business-friendly environment, coupled with its strategic location and access to key markets, positions Eswatini as a compelling investment destination.
The upcoming Eswatini Investment Conference underscores our commitment to showcasing the country’s potential and fostering private sector participation. A continued focus on policy reform, digital empowerment, and sustainable development means that Eswatini is poised to achieve its economic goals while at the same time serving as a model for other small economies seeking to punch above their weight on the global stage.
