Eswatini’s ongoing digital transformation presents a significant opportunity to drive inclusive growth, but it requires bold reforms, including restructuring the Eswatini Posts and Telecommunications Corporation (EPTC), to fully harness digital technologies.
Key Policy Pillars for Unlocking Eswatini’s Digital Economy
Satu Kahkonen, World Bank Division Director for Eswatini, emphasized the importance of strengthening coordination across government initiatives, accelerating digital skills development, and fostering innovation. The Eswatini Economic Update (EEU) recommends three core policy pillars:
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Enhancing resilience through effective macroeconomic management
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Stimulating job creation by improving the private sector enabling environment
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Providing better and more affordable services via efficient public spending
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Strategic Digital Initiatives to Boost Growth and Inclusion
The report highlights several critical policy options to advance digital governance, including:
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Clearer institutional roles and a national change management program
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Open access policies and investment in digital public infrastructure such as a modern digital ID system
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Developing a national digital skills action plan aligned with labor market needs
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Fostering a competitive innovation ecosystem through regulatory reforms, financing access, and support for startups via public procurement
Economic Outlook and Digitalization’s Role in Job Creation
According to the latest EEU report titled “Harnessing the Potential of Digital Technologies for Eswatini’s Growth and Job Creation,” the country’s economy is projected to grow by about 5% in 2025, driven by public and private investment. However, sustaining inclusive growth requires addressing structural constraints and diversifying the economy.
Addressing Unemployment and Structural Inefficiencies through Digitalization
With a high unemployment rate of 35.4%, digital transformation is seen as a key strategy to boost productivity, create sustainable jobs, and increase domestic revenue. Minister for Economic Planning and Development, Dr. Tambo Gina, noted the alignment of the report with Eswatini’s 2024-2028 digital strategy, emphasizing efforts to reduce reliance on SACU transfers.
Expanding Digital Access and Reducing Costs Remain Challenges
While 95% of Eswatini’s population is covered by 4G networks, only about 58% use the internet, largely due to the high cost of data, which exceeds affordability thresholds. The report calls for telecom sector reforms, including:
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Restructuring the telecom state-owned enterprise
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Implementing open access policies to ensure fair network usage for all providers
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Updating regulations to promote competition and reduce costs
Supporting SMEs to Overcome Digital Adoption Barriers
Nearly half of Eswatini’s small and medium enterprises (SMEs) face challenges adopting digital technologies. The report recommends targeted skills development, entrepreneurship support, and public procurement linkages to drive innovation and job creation.
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