Eswatini's Digital Transformation Crucial to Unlocking Growth, Jobs, and Economic Resilience
Eswatini's economy is projected to grow by about 5% in 2025 through a combination of policies and supportive conditions amid global economic uncertainty. An increase in public and private investment is projected to contribute to economic activity. The challenge will be to maintain this economic momentum and ensure growth is more inclusive over the medium term. The nation faces pressing needs to digitalize and address structural constraints, diversify its economy and strengthen public finances.
The second edition of the EEU identifies digitalization as a key transformative strategy for the country, particularly as it addresses significant challenges such as a 35.4% unemployment rate and structural inefficiencies in vital sectors including agriculture, trade, and services. By accelerating digital transformation, Eswatini can boost productivity, create sustainable new jobs, and increase domestic revenue helping to reduce reliance on volatile revenues.
'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.
Eswatini is making progress in expanding digital access, with nearly 95% of the population now covered by 4G networks. However, only about 58% of people are using the internet. One of the main reasons is the high cost of data, which takes up 3.47% of GNI per capita - above what is considered affordable in the region. To boost digital adoption and attract greater investment, the report recommends reforming the telecom market, including restructuring the telecom State-Owned Enterprise, adopting open access policies to ensure that all service providers can use the same network infrastructure on fair and equal terms, and update regulatory frameworks to promote competition and lower costs. In addition, with almost half of the country's Small and Medium Enterprises facing digital adoption barriers, targeted efforts in skills development and entrepreneurship support, including linkages to public procurement, are essential to drive job creation and innovation.
'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 unlock Eswatini's digital potential for higher economic growth and job creation, the EEU recommends three core policy pillars:
(i) Enhance resilience through effective macroeconomic management;
(ii) Stimulate job creation through private sector development by improving the enabling environment;
(iii) Provide better and more affordable services through efficient public spending.
The policy options include strengthening digital governance through clearer institutional roles and a national change management program; accelerating Eswatini Post and Telecommunications Corporation (EPTC) reforms to enhance operational efficiency and introduce open access; investing in digital public infrastructure, including a modern digital ID system; developing a National Digital Skills Action Plan aligned with labor market needs; and fostering a competitive innovation ecosystem through regulatory reforms, financing access, and support for startups via public procurement opportunities.
Addressing these priorities will position Eswatini to harness digital transformation for broader economic inclusion and growth.
Distributed by APO Group on behalf of The World Bank Group.
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