Digitalization's Importance to Eswatini's Economic Prosperity Emphasized in World Bank Report
In a significant move towards modernization, the Kingdom of Eswatini is embarking on a comprehensive digital transformation journey to boost productivity, create jobs, and increase domestic revenue. This approach, outlined in the recently launched Eswatini Economic Update (EEU) titled "Harnessing the Potential of Digital Technologies for Eswatini's Growth and Job Creation" by the World Bank Group (WBG), emphasizes a well-rounded strategy encompassing infrastructure investments, legal reforms, skills enhancement, affordability measures, and broader economic policy reforms.
The Honorable Thambo Gina, Minister for Economic Planning and Development, has stated that the report aligns with the country's 2024-2028 digital strategy. According to the Minister, this transformation is crucial for Eswatini's economic growth and job creation, particularly in addressing challenges such as a high unemployment rate and structural inefficiencies in sectors like agriculture, trade, and services.
Key actions outlined in the EEU include:
- Expand and upgrade digital infrastructure: Eswatini has already made strides in this area, increasing international bandwidth from 47 Gbps to 72 Gbps and rolling out fiber optic networks nationwide, including rural areas. The expansion of 4G/5G networks, such as the 5G-enabled Smart City in Mbabane with AI-powered cameras and free Wi-Fi, provides a strong backbone for digital access.
- Implement enabling legislation and policy frameworks: Critical laws like the Cybersecurity Bill, RSTP Bill 2023, E-Commerce Strategy, and the Critical Infrastructure Bill have been introduced to ensure safe, inclusive, and sustainable digital growth. These legal frameworks help build trust and protect digital transactions, stimulating economic activity.
- Enhance digital literacy and skills development: Investing in human capital is essential for absorbing and utilizing digital technologies effectively. Training programs and educational investments should aim to improve ICT skills across the population, especially targeting marginalized groups and rural communities to spur inclusive growth.
- Address structural economic constraints: Digital transformation needs to be complemented by efforts to diversify the economy beyond traditional sectors, strengthen public finances, and improve the business environment. The EEU emphasizes tackling inefficiencies in agriculture, trade, and services to create a more resilient and sustainable economic base.
- Promote affordability and reduce adoption barriers: Extending free or subsidized internet access to schools, community centers, and rural areas, as well as policies to ensure affordable data and digital devices, will be critical for widespread digital inclusion.
- Leverage digital technologies to stimulate private sector growth and job creation: Accelerating digital transformation can boost productivity by enabling innovation, supporting data-driven decision-making, and expanding access to global markets. This stimulates private sector development and generates sustainable jobs.
- Integrate digitalization with public service improvements: Efficient public spending on digital services improves government service delivery and can increase domestic revenue through better tax administration and reduced leakages, contributing to fiscal resilience.
In addition, regulatory reforms are recommended to foster a competitive innovation ecosystem. The Eswatini Post and Telecommunications Corporation (EPTC) reform is suggested to enhance operational efficiency and introduce open access. The EEU also recommends improving the enabling environment for the private sector as a means to stimulate job creation.
By pursuing this comprehensive strategy, Eswatini aims to effectively implement digital transformation and reap the benefits of increased productivity, job creation, and domestic revenue. The government and international partners like the World Bank are committed to supporting this transformation, recognizing that sustained action will be necessary to overcome remaining structural challenges and ensure inclusive economic growth.
Eswatini's economy is projected to grow by about 5% in 2025 through a combination of these policies and supportive conditions. With the right investments and reforms, Eswatini stands poised to harness the potential of digital technologies for a brighter, more prosperous future.
- The government, in collaboration with international partners like the World Bank, is investing in expanding and upgrading digital infrastructure in Eswatini, aiming to bridge the digital divide and increase access for businesses and individuals.
- To create an enabling environment for startups and private businesses, the ministry is implementing legal reforms, including introducing critical laws like the Cybersecurity Bill and E-Commerce Strategy, and improving the business environment.
- Recognizing the importance of personal-finance education, the government is advocating for digital literacy and skills development programs to boost the population's understanding of finance and empower them to make informed decisions about investing in technology-driven sectors.
- In a bid to stimulate job creation and economic growth, the government and the World Bank Group are supporting educational investments that focus on technology and education-and-self-development to cultivate a well-equipped workforce capable of addressing the challenges posed by the modernized business landscape.
