COUNTRY PRIVATE SECTOR DIAGNOSTIC - Creating Markets in Eswatini - Strengthening the Private Sector to Grow Export Markets and Create Jobs

Jul 19, 2026

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The report diagnoses key constraints facing Eswatini’s private sector and economy, linking weak growth to fiscal unsustainability, declining private investment, and deteriorating productivity and competitiveness. It explains how COVID-19 worsened health system pressures and how political unrest since mid-2021 reduced investment and disrupted recovery. With estimated direct losses of about US$210 million, the paper highlights unemployment, poverty, and inequality, especially for women and youth, and emphasizes restoring peace to rebuild investor confidence.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages114

Reading Time4 h 47 min

AccessFree to download

Executive Summary

Macroeconomic and private-sector challenges

Impact of COVID-19 and political unrest

Employment, poverty, and inequality

Investor confidence and national dialogue

Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public COUNTRY PRIVATE SECTOR DIAGNOSTIC CREATING MARKETS IN ESWATINI Strengthening the Private Sector to Grow Export Markets and Create Jobs September 2022 About IFC IFC—a member of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, [visit www.ifc.org](visit www.ifc.org). © International Finance Corporation 2022. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 [www.ifc.org](www.ifc.org) The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The findings, interpretations, views, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the Executive Directors of the International Finance Corporation or of the International Bank for Reconstruction and Development (the World Bank) or the governments they represent. ACKNOWLEDGMENTS The Eswatini Country Private Sector Diagnostic was prepared by a team led by Zenaida Hernandez Uriz and Zivanemoyo Chinzara under the supervision of Douglas Pearce and Sebastien Dessus. The team included Gracelin Christina Baskaran, Marko Kwaramba, Andre Louw, Lindsay Jolly, Peter Nuamah, Dalton Nxumalo, Ronald Rateiwa, Rajeev Gopal, Wycliff Tlhalefang Moeletsi, and Rod de Vletter. The team is grateful for the contributions and comments provided by Ejiro Agbeyi, Tom Adcock, Edouard Al-Dahdah, Ubong Awah, Soumya Banerjee, Caroline Chepkorir Koech, Awa Diagne, Delphine Divan, Ivan Abdul Dula Remane, Ana Cristina Hirata Barros, Ruben Barreto, Edward Beukes, Chijioke Egejuru, Aki Enkenberg, Peter Goodman, Kirstin Iman Conti, Joseph Kapika, Thulani Matsebula, Sarah Moyer, Philippa McLaren, Abduel Mnzava, Elizabeth Ninan, Ganesh Rasagam, Marc Schrijver, Barry Patrick Maher, Alice Zanza, Dryden Mwangi Kirembu, Peter Boere, Hope Tariro Pachena, Hyea Won Lee, Simbi Wavinya Anzaya, Anne Njambi Kabugi, Priyanka Tayal and Carol Marina Tojeiro. The team gratefully acknowledges the guidance of Marie Francoise Marie-Nelly, Kevin Njiraini and Mona Haddad, as well as Nonhlanhla Zindela, Adamou Labara and Wolfgang Fengler in the preparation of this report. The team is grateful to peer reviewers Liane Asta Lohde, Marcio Cruz, Michael Ehst, John Gabriel Goddard, Zeinab Partow, and Zano Mataruka. Superb administrative support to the team was provided by Nomagugu Khumalo and Jemima Harlley. Thereport was edited by Marcy Gessel and Kevin Morrow, Publications Professionals LLC, and designed by Christiane Wakim. The team would like to express gratitude to the many officials of the government of the Kingdom of Eswatini and private sector representatives who generously shared their knowledge and insights with the CPSD team. EXECUTIVE SUMMARY Eswatini is facing multiple challenges. It was already experiencing weak economic growth before the COVID-19 pandemic, a reflection of longstanding, deeply rooted issues such as fiscal unsustainability, declining private i

FAQs

What main challenges does Eswatini face according to the executive summary?

Eswatini faces weak economic growth rooted in fiscal unsustainability, declining private investment, weaker productivity and competitiveness, and reduced export diversification. These were amplified by COVID-19 and political unrest.

How did COVID-19 and political unrest affect Eswatini’s economy and recovery?

COVID-19 strained health systems and compounded existing vulnerabilities, while political unrest disrupted recovery after 2020. The economy contracted in 2020 and recovery in 2021 was dashed by unrest.

Why does the report emphasize long-term solutions to political unrest?

The executive summary notes both immediate direct losses and the likelihood of higher indirect costs that can delay or cancel investment plans. A successful national dialogue is presented as essential to restore peace and rebuild investor confidence.

Jul 19, 2026

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