Eswatini is a landlocked country bordering South Africa and Mozambique in Southern Africa. Poverty levels have stagnated at high levels in the last five years, with 36.1% of the population of 1.2 million estimated to have been living under the international $2.15 poverty line in 2016 and 2017.

 

Eswatini’s close economic ties to South Africa mean about 85% of its imports and about 60% of its exports depend on its much larger neighbor. It is a member of the Common Monetary Area (CMA), with Lesotho, Namibia, and South Africa. Under the CMA, the Eswatini lilangeni (the domestic currency) is pegged to the South African rand, which is also legal tender in the country.

The economy had a strong rebound in 2021, with real GDP growth estimated at 7.9%, up from a 1.6% contraction in 2020. The easing of lockdown measures in 2021 supported export-oriented sectors, as well as the robust recovery in external demand in key destination markets. Though political unrest in June/July 2021 resulted in the destruction of physical assets, theft of inventory, and constrained operational hours, its impact on production was partly mitigated by a Reconstruction Fund, set up by the government to cushion businesses from lasting effects of the damage.

Guest in studio: Gugulethu G. Xaba -Chairman Adamo Holdings (Pty) Ltd / Amandla Omnotho