The Central Bank of Eswatini’s (CBE) 2025 monetary policy statement has come under scrutiny for its lack of emphasis on social inclusion, particularly in human capital development at the household level.
Southern Africa Research Foundation for Economic Development (SARFED) Regional Coordinator and Senior Policy Advisor Dr. George H. Choongwa expressed concerns that the policy did not adequately address these critical areas.
“The governor’s monetary policy statement did not bring key specific areas of social inclusion through human capital development for national sustainable development, particularly at the household perspective,” Dr Choongwa remarked.
He acknowledged that while CBE successfully implemented generic interventions such as controlling inflation to balance supply and demand, these measures fall short of fostering inclusive growth.
Dr Choongwa emphasised that inclusivity should not be a passive concept, but a practical act of policy reform.
“As stated in this year’s Central Bank’s Money Policy and Eswatini National Financial Inclusion Strategy (2023-2028), inclusivity should not be taken as a passive concept, but as a practical act of policy reform for sustainable development in Eswatini,” he asserted.
This aligned with the international Agenda 2030, which advocates for leaving no one behind.
He further highlighted the need for CBE to champion a successful implementation of a monetary policy paradigm shift by accelerating the adoption of a more inclusive and robust monetary policy framework that integrates social, cultural, environmental and economic development.
Dr Choongwa outlined several key areas that could accelerate the inclusive growth mandate using monetary policy, which include improving income accessibility and quality in terms of usability.
Promoting gender-responsive budgeting which is recognising that sustainable economic development is gender-responsive. Strengthening youth-driven capital access to financing for industrial innovation.
Prioritising micro, small, medium enterprises (MSMEs) financing to enhance competitiveness.
He added that developing inclusive policies as well as budget frameworks was also key and investing in IT for climate change adaptation and cultural heritage.
Dr Choongwa criticised the limited definition of sector specifications, such as gender, youth and the informal sector, in accessing financing for socioeconomic development.
He noted that while the governor’s report addressed the relevance of integration and institutional cooperation for attaining sustainable development, it lacked reflection on key socially oriented thematic areas, particularly the establishment of gender-responsive financing mechanisms for women in business. According to Eswatini National Financial Inclusion Strategy (2023-2028), it is the mandate of government, through strategic institutions both private and public, to increase access to financing for all.
Dr Choongwa emphasised the need for a more dynamic and contextual country-based definition of financial inclusion.
He also pointed out that sustainable and inclusive financing should be considered a growth trajectory for local SMEs, not a constraint.
Despite this, MSMEs in the country still face challenges in accessing financing for expansion and competitiveness, compounded by contextual-based challenges such as gender, age disparities and market linkages.
Dr Choongwa urged government to remain robust in meeting the emergent and dynamic needs of MSMEs.
“These sector-specific challenges are not one size-fits-all, but are contextual in nature. Hence, it is the responsibility of government to remain robust in meeting the emergent and dynamic needs of the MSMEs,” he stated.
He also highlighted the importance of integrating informal sector financing, noting that while the informal sector was often regarded as risky and neglected by formal national financing mechanisms, it was, in reality, more resilient than the formal MSME sector.
To strengthen the fiscal policy of Eswatini, Dr Choongwa proposed strengthening the country’s entrepreneurship ecosystems, enhancing financial illiteracy for skills scaling up for youth and women as well as adapting regulatory processes for inclusive financing in critical areas like SMEs.
Dr Choongwa emphasised that while government has demonstrated a stable monetary and fiscal policy with positive trajectories in public sector financial performance, there are still grey areas that need to be addressed to attain inclusivity.
“The report still leaves many grey areas which would need an abridged approach towards attaining inclusivity by addressing emerging issues in sector-specific areas such as women, climate change, environment, cultural, youth, and informal sector skills development, financial and market information, innovation, and network among others,” he concluded.
