Digital Progression Pivotal to Economic Growth in Eswatini According to World Bank Report
The World Bank Group recently launched its Eswatini Economic Update (EEU), titled "Harnessing the Potential of Digital Technologies for Eswatini's Growth and Job Creation." The report presents a comprehensive strategy for the kingdom to leverage digital transformation to boost productivity, create sustainable jobs, and increase domestic revenue.
According to the EEU, Eswatini can effectively implement digital transformation by following several key strategies. These include fully digitizing tax administration, establishing an online business registry, deploying a digital procurement system, and enhancing connectivity infrastructure through reform of the Posts and Telecommunications Corporation (EPTC). The report recommends accelerating the digital transformation of EPTC to enhance operational efficiency and introduce open access.
The EEU also emphasizes the importance of digital governance. Policies should clarify institutional roles, operationalize the Cybersecurity Agency and Data Protection Office, and foster a digital ecosystem with stronger intellectual property protections and government support for startups. A National Digital Skills Action Plan aligned with labor market needs is suggested for digital skills development.
The report highlights digitalisation as a means to reduce dependency on volatile revenue streams such as SACU transfers, diversify the economy, and increase resilience amid global economic uncertainty. By embracing digitalisation, Eswatini can boost productivity, create sustainable new jobs, and increase domestic revenue. The EEU aligns with Eswatini’s 2024-2028 digital strategy and identifies digitalization as a key transformative strategy for Eswatini, particularly to address challenges such as a 35.4% unemployment rate and structural inefficiencies in sectors like agriculture, trade, and services.
The EEU also recommends stimulating job creation through private sector development by improving the enabling environment. An increase in public and private investment is projected to contribute to economic activity in Eswatini. Regulatory reforms, financing access, and support for startups via public procurement opportunities are proposed to foster a competitive innovation ecosystem. Strengthening digital governance through clearer institutional roles and a national change management program is suggested.
Investment in digital public infrastructure, including a modern digital ID system, is recommended. Expanding financial inclusion by fully utilizing digital payment systems like the National Payment Switch and moving away from predominantly cash-based transactions will further enhance economic participation. The government’s efforts in digitizing public services, such as the GIYH digital government app, exemplify ongoing digital transformation initiatives.
The Honorable Thambo Gina, Minister for Economic Planning and Development of the Kingdom of Eswatini, stated that the report aligns with the country's 2024-2028 digital strategy. The Minister also welcomed the World Bank's insights on how digital transformation can contribute to boosting inclusive economic growth, domestic revenues, and reducing reliance on SACU transfers. The EEU provides analysis of Eswatini's recent economic performance and prospects for the medium term.
By decisively implementing these digital transformation priorities—enhancing digital infrastructure, governance, skills, and entrepreneurship—Eswatini can unlock systemic productivity gains, create inclusive job opportunities, and boost sustainable domestic revenue, thereby reducing reliance on external fiscal support. The EEU further suggests fostering innovation as a key to unlocking Eswatini's digital potential. The EEU projects that Eswatini's economy is projected to grow by about 5% in 2025.
- Eswatini can accelerate the digital transformation of its Posts and Telecommunications Corporation (EPTC) to enhance operational efficiency and introduce open access, as recommended by the Eswatini Economic Update (EEU).
- To foster a competitive innovation ecosystem, regulatory reforms, an increase in public and private investment, financing access, and support for startups via public procurement opportunities are proposed, according to the EEU.
- Investment in digital public infrastructure, including a modern digital ID system, is recommended by the EEU to expand financial inclusion and move away from predominantly cash-based transactions.
- The EEU emphasizes the importance of digital governance, suggesting policies should clarify institutional roles, operationalize the Cybersecurity Agency and Data Protection Office, and foster a digital ecosystem with stronger intellectual property protections and government support for startups.
