Eswatini’s Digital Transformation Vital for Growth, Job Creation, and Economic Resilience

Mbabane, Eswatini — As Eswatini projects an economic growth rate of about 5% in 2025 amid global uncertainties, a new report from the World Bank Group highlights digital transformation as a key catalyst to unlocking sustained growth, job creation, and stronger public finances. 

The Eswatini Economic Update (EEU) 2025, titled Harnessing the Potential of Digital Technologies for Eswatini’s Growth and Job Creation, lays out a roadmap for accelerating digitalization to overcome structural economic challenges facing the small Southern African kingdom.

A Promising Outlook Shadowed by Structural Challenges

Eswatini’s growth prospects are buoyed by increased public and private investments. However, the EEU warns that sustaining this momentum and making growth inclusive requires urgent attention to key hurdles: high unemployment, estimated at 35.4% and inefficiencies across critical sectors such as agriculture, trade, and services.

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The report underscores digital transformation as a transformative strategy that can drive productivity gains, create sustainable employment opportunities, and raise domestic revenue to reduce dependence on volatile sources like the Southern African Customs Union (SACU) transfers.

Thambo Gina, Minister for Economic Planning and Development, welcomed the report’s insights at its July 31 launch in Mbabane.

“This report aligns with the Kingdom’s 2024–2028 digital strategy. We look forward to leveraging digital technologies to accelerate inclusive growth and strengthen our public finances,” he said.

Digital Access vs. Adoption: The Cost Barrier

Eswatini has made commendable progress expanding digital infrastructure: nearly 95% of the population is covered by 4G mobile networks. Yet, internet usage lags at around 58%, a gap largely attributed to the high cost of data, which consumes about 3.47% of the country’s Gross National Income (GNI) per capita, above regional affordability benchmarks.

To capitalise on the promise of digital technologies, the World Bank report advocates major reforms in the telecommunications sector, including:

• Restructuring of Eswatini Posts and Telecommunications Corporation (EPTC) to increase operational efficiency;
• Establishing open access policies to allow multiple service providers to use the same network infrastructure under fair and equal terms, fostering competition and driving costs down;
• Updating regulatory frameworks to promote innovation and a competitive market.

Such steps would not only reduce prices but also encourage greater digital inclusion and attract further investment into Eswatini’s digital economy.

Overcoming Barriers for Small and Medium Enterprises

Nearly half of Eswatini’s Small and Medium Enterprises (SMEs) currently face challenges adopting digital tools. These barriers impede their ability to compete and innovate effectively.

The EEU recommends targeted government support focused on:

• Digital skills development aligned with labour market needs;
• Entrepreneurship programs that foster innovation and link SMEs to public procurement opportunities;
• Strengthening the digital innovation ecosystem through financing access and regulatory reforms, ensuring startups can thrive.

Three Pillars for Unlocking Digital Growth

The report frames Eswatini’s digital transformation strategy around three interrelated policy pillars:

1. Enhance resilience through improved macroeconomic management, securing public finances while managing external shocks.
2. Stimulate job creation by improving the private sector environment, with reforms encouraging investment, entrepreneurship, and competitiveness.
3. Deliver better and more affordable public services, driven by efficient government spending on digital infrastructure and human capital development.

Specific policy actions include strengthening digital governance with clear institutional roles, launching a national change management program, investing in public digital infrastructure (such as a modern digital ID system), and fostering innovation-led ecosystems.

Towards Inclusive Growth and Economic Diversification

By embracing digitalisation, Eswatini stands to reduce reliance on unpredictable revenue streams, improve productivity across sectors, and generate much-needed employment in a labour market weighed down by high youth unemployment.

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Furthermore, connecting more citizens and businesses to affordable and reliable digital services can widen access to education, healthcare, and financial products, enhancing overall social inclusion.

Satu Kahkonen, World Bank Division Director for Eswatini, emphasised:

“Realising Eswatini’s digital potential requires bold reforms, transforming EPTC, coordinating government initiatives, scaling digital skills, and encouraging innovation will be key.”

Seizing the Digital Opportunity

Eswatini’s digital transformation journey represents a pivotal opportunity to leapfrog traditional constraints, cultivating a resilient and diversified economy capable of sustaining growth and meeting the aspirations of its people.

The Eswatini Economic Update 2025 provides both a diagnosis of current challenges and a pathway to harness digital technologies as engines for inclusive prosperity.

With coordinated efforts from the government, private sector, and development partners, the Kingdom of Eswatini can position itself as a digital leader within Southern Africa and beyond.