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Investor Presentaiton

1. NATIONAL AND REGIONAL CONTEXT 12 SDG Index Rank 137/163 1 W К Ti 7 10 NEWING 11 "O+ R 71 Dashboards: SDG achieved Challenges remain Significant challenges remain Major challenges remain Information unavailable Trends: +On track or maintaining SDC achievement 21 Moderately improving +Stagnating + Decreasing SDG Index Score 54.6 Spillover Score 91.9 In 2022, the Kingdom of Eswatini continued to recover, albeit slowly, from the social and economic impacts of COVID-19. GDP growth slowed to an estimated 0.4% in 2022 from 7.9% in 2021, hamstrung by higher inflation, a tightening monetary policy, supply disruptions linked to Russia's invasion of Ukraine, in particular energy products, fertilizers and food. Inflationary pressures exacerbated living conditions for the populace as the prices of fuel, food, farm inputs and essential commodities increased. This resulted in continued rise in inequalities, unemployment, drop in incomes as well as reduced food and nutrition security. This was compounded by the impacts of other shocks such as cyclone Eloise in 2020, political dissent and armed violence in 2021 which dealt the economy a hard blow. In response Eswatini made encouraging investment in the social sector and more investment is still required in health, education and social protection. Under the Common Monetary Area (CMA) which comprises Eswatini, Lesotho, Namibia and South Africa, the Eswatini Lilangeni, the domestic currency and legal tender, is pegged to the South African rand. Within the CMA framework, Eswatini has strong economic ties with South Africa, with over 60% of exports going to South Africa and over 80% of imports coming from South Africa. Therefore, in 2022 the slowing economic growth in South Africa, Eswatini's major trading partner posed a risk to Eswatini's economic growth. However, Eswatini ensured increased and stable market access for the business community by joining the African Continental Free Trade Area (AfCFTA). Whilst relative calm prevailed for most of 2022, the causes and impacts of the 2021 civil unrest remained largely unaddressed. Calls for change continued while the unprecedented emergence of an armed group, Swaziland International Solidarity Forces (SISF), deepened political, human rights, social and security concerns. The Government assured Emaswati that a proposed national dialogue would be held when conditions allow, while regional diplomacy continued to advocate for the national dialogue. By the end of 2022, the dialogue's timing was yet to be communicated as attention shifted to preparations for national elections in 2023. According to the Sustainable Development Report 2022, the Kingdom of Eswatini had made average progress (a score of 54.6 out of 100) on the achievement of SDGs. In 2022, the Government approved a new National Development Plan (NDP) 2023/24-2027/28 prioritising investments in good governance, economic recovery and fiscal stability; and enhanced social and human capital development and sustainable livelihoods. If fully implemented, the new NDP provides a beacon for setting the Kingdom on the path to rescuing SDGs by 2030. UN ANNUAL RESULTS REPORT | 2022 ESWATINI 13
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