Eswatini’s economic growth is projected to reach about 5% in 2025, according to the latest Eswatini Economic Update (EEU) released by the World Bank Group. The report, titled "Harnessing the Potential of Digital Technologies for Eswatini’s Growth and Job Creation," highlights digitalization as a key strategy for driving growth, creating jobs, and improving economic resilience.
The EEU outlines that increased public and private investment are expected to support economic activity in the coming year. However, it also notes that sustaining this momentum will require addressing structural constraints, diversifying the economy, and strengthening public finances.
A central focus of the report is on digital transformation. It points out that while nearly 95% of Eswatini’s population has access to 4G networks, only about 58% use the internet. The high cost of data—at 3.47% of GNI per capita—is cited as a barrier above regional affordability standards. The report recommends reforms in the telecommunications sector such as restructuring state-owned enterprises, adopting open access policies for network infrastructure, and updating regulations to foster competition and lower costs.
The unemployment rate in Eswatini stands at 35.4%. The EEU suggests that accelerating digital adoption can boost productivity and help reduce dependence on volatile revenue sources.
“This report aligns with the Kingdom of Eswatini’s 2024-2028 digital strategy. We welcome the World Bank’s insights on how digital transformation can contribute to accelerating our ongoing efforts to boost inclusive economic growth and domestic revenues and in so doing reduce reliance on SACU transfers,” said Honorable Thambo Gina, Minister for Economic Planning and Development for the Kingdom of Eswatini at the report’s launch in Mbabane.
The EEU emphasizes targeted measures to support small- and medium-sized enterprises (SMEs), which face barriers to digital adoption. These include developing skills programs, supporting entrepreneurship, and linking SMEs with public procurement opportunities.
“Eswatini’s digital transformation presents an opportunity to drive inclusive growth. Realizing this will require bold reforms to unlock the full potential of digital technologies, including the restructuring of Eswatini Posts and Telecommunications Corporation (EPTC),” said Satu Kahkonen, World Bank Division Director for Eswatini. “In addition, strengthening coordination across government initiatives, accelerating digital skills development, and fostering innovation will be key to unlocking this potential. Addressing these challenges will enable the country to capture the full benefits of a digital economy."
To achieve higher economic growth through digitalization, the report recommends three main policy areas: enhancing macroeconomic management resilience; stimulating job creation through private sector development; and providing better services via efficient public spending.
Additional policy options proposed include clarifying institutional roles in digital governance; implementing a national change management program; advancing EPTC reforms; investing in modern digital infrastructure such as a national ID system; developing a National Digital Skills Action Plan tailored to labor market needs; regulatory reforms; expanding financing access; and supporting startups through procurement opportunities.
The World Bank Group states that progress on these priorities could help position Eswatini for more inclusive economic participation through technology-driven solutions.