Investor's Guide To Eswatini
E
swatini is classified as a lower middle-income country by the World Bank classification. The country's GDP at market
price is estimated at USD 3.541 billion in 2018, and is expected to reach 3.931 in 2019. While the GDP growth rate
was 1% in 2017 it is expected to marginally contract to -0.36% in 2018 while in 2019, a resurgent growth of 1.65%
is expected. Eswatini's economy is fairly diversified, with agriculture and agroforestry accounting for about 8.0% of GDP,
manufacturing (textiles and sugar-related processing) representing 45% of GDP, and 47% of GDP generated by public
sector services.
GDP
2013
2014
2015
2016
2017
2018
2019
GDP at Market Prices (current,
billions of USD)
4.602
4.500
4.340
3.786
3.523
3.541
3.931
GDP Growth (annual %)
4.8
3.6
1.1
1.3
1.0
-0.36*
1.65*
Source:
3 ECONOMY
African Development Bank Group, AfDB Socio Economic Database, 1960-2019.
* Estimates from the Central Bank of Eswatini
4.8%
3.6%
1.3%
1.65%
1.1%
1.0%
-0.36%
2013
2014
2015
2016
2017
2018
2019
Over a couple of decades ago, the economy of Eswatini
had been characterised by enormous progress
emanating largely from foreign direct investment in
mining, agribusiness, tourism and manufacturing.
Consequently, manufacturing and processing output
have been the major contributors to economic growth
due to the government's consistent and various
incentives to sustain the contribution of these activities
to the GDP. There has been an increase in manufacturing
activity, owing to the recovery of the textile sector after
regaining AGOA and the construction sector is on an
upward trend. Agriculture, on the other hand, continues
to be the mainstay of the economy through the export-
oriented production of sugar, meat and meat products,
timber, fresh fruits and vegetables amongst others. But
the country was not spared from the effects of the global
financial crisis of 2008, even though moderate recovery
has been experienced. The 'title deed lands', where the
bulk of high-value crops are grown (sugar, wood and
citrus) are characterised by high levels of investment and
irrigation, and high productivity. However, the majority of
the population (about 75%) is employed in agriculture on
Swazi Nation Land.
In an endeavour to diversify and sustain the manufacturing
sector, Eswatini is making significant strides in making
value-added manufacturing more competitive by offering
generous incentive packages to investors to create
mass employment for the population. The country
has a comparative advantage in food processing and
agribusiness, business process outsourcing and call
centres, timber processing and value addition to sugar
among other sectors.
The Kingdom of Eswatini has joined a number of COMESA
countries in the identification of new economic growth
poles by promoting the development of Special Economic
Zones (SEZ) through passing legislation, the Special
Economic Zones Act of 2018. The Act lays the ground
that fosters accelerated economic growth by assisting
the establishment of competitive and innovative strategic
economic activities leading to vibrant, resilient and high-
performing industries. The Act specifies an ambitious and
compelling set of incentives that will enhance production
and processing for export in priority sectors, mainly in
value-added manufacturing.
Two sites have already been declared as Special
Economic Zones by law. First, the Royal Science and
Technology Park, which will leverage biotech industries
and high-value agribusiness. It is strategically located in
proximity to the country's biggest industrial estate and
rail inland port in Matsapha. The other site is the King
Mswati III International Airport Zone. Both of these SEZS
offer lucrative incentives to qualifying investments in
bio-science, technology and innovation as well as avia-
tion-related businesses and services and value-added
manufacturing.
Investor's Guide To Eswatini 15View entire presentation