The United States government has positioned Eswatini as a strategic investment gateway into southern and eastern Africa, encouraging American companies to explore opportunities in the kingdom.
The development follows a directive by Mswati III, who called on government to facilitate the establishment of at least 10 mega companies — each generating a minimum annual turnover of E10 billion — in high-growth sectors of the economy.
Delivering the Speech from the Throne during the opening of the Third Session of the 12th Parliament, the King urged accelerated large-scale investment aimed at transforming the country’s economic base.
In its latest market overview published on February 9, the United States Department of Commerce describes Eswatini as an export-oriented economy with improving business reforms and legal protections for foreign investors.
This assessment is reinforced by the 2025 Eswatini Investment Climate Statement issued by Washington last September.
Together, the documents amount to one of the clearest endorsements yet from the US government encouraging American firms to consider Eswatini as an investment destination.
Although Eswatini has a domestic population of about 1.2 million, the US pitch focuses on its access to major regional trade blocs:
Through these arrangements, companies manufacturing in Eswatini can access markets comprising hundreds of millions of consumers.
The reports also reference opportunities under the African Continental Free Trade Area (AfCFTA), positioning the country as a launch pad for export-driven manufacturing.
In 2024:
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US exports to Eswatini reached approximately E800 million (US$46.1 million).
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Eswatini exported about E350 million (US$22.6 million) to the US.
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The US recorded a trade surplus of roughly E400 million.
Eswatini’s exports to the US were dominated by raw sugar, processed fruits and nuts, and knit apparel.
The country also benefits from eligibility under the African Growth and Opportunity Act (AGOA), which grants qualifying sub-Saharan African countries preferential access to the US market.
A key pillar of Eswatini’s investment strategy is the establishment of Special Economic Zones (SEZs) under the 2018 SEZ Act.
Incentives include:
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20-year corporate tax exemption
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5% corporate tax thereafter
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Duty and VAT refunds on qualifying inputs
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Unrestricted profit repatriation
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Exemption from foreign exchange controls within SEZs
Approved projects outside SEZs may qualify for a reduced corporate tax rate of 10% for their first decade.
Eswatini currently imports about 80% of its electricity from South Africa and Mozambique but is reforming its energy sector to attract Independent Power Producers and boost domestic generation.
On labour:
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Unemployment stands at 35.4%.
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Youth unemployment is 58%.
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Literacy exceeds 89%.
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Median age is 24.4 years.
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English is widely used in business and legal proceedings.
The US notes that labour relations structures are stable and dispute resolution mechanisms are clearly defined.
Legally, Eswatini is a member of the International Centre for Settlement of Investment Disputes (ICSID), accepts binding arbitration rulings, and allows 100% foreign ownership in most sectors.
The legal system follows Roman-Dutch law, with specialised commercial courts introduced in 2022 to expedite business disputes.
The US assessment acknowledges challenges, including:
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Civil unrest in 2021
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A ranking of 130th out of 180 countries on Transparency International’s Corruption Perceptions Index
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Regulatory delays and gradual reform implementation
However, Washington concludes that Eswatini’s structural advantages — trade access, tax incentives, infrastructure, and legal protections — outweigh the risks.
With the King’s directive for the creation of 10 mega companies now on record, Eswatini’s economic strategy appears aligned with Washington’s investment messaging.
The question now is whether American capital will respond — and whether the kingdom can convert policy ambition into transformative investment.
