Eswatini needs to digitalize, strengthen public finances and address structural economic constraints to sustain growth, according to the latest edition of the Eswatini Economic Update EEU launched by the World Bank Group WBG today, titled: Harnessing the Potential of Digital Technologies for Eswatini's Growth and Job Creation. The report also provides analysis of the country's recent economic performance and prospects for the medium term.
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."
