Eswatini - Market ChallengesEswatini - Market Challenges
Eswatini is a small market that is heavily dependent on international trade. It suffers from its financial dependency on Southern African Customs Union (SACU) receipts, recently out-of-control government spending, a bloated civil service wage bill, the world’s highest HIV/AIDS prevalence rate, economic inequality (Gini coefficient 0.51), and high unemployment.
The World Bank 2019 Doing Business Report indicates that Eswatini is performing poorly in the indicators of: starting a business, enforcing contracts, and getting electricity. The World Economic Forum identifies inefficient government bureaucracy, corruption, and access to finance as the 3 most problematic areas of doing business in Eswatini.
As in much of southern Africa, the demand for electricity outstrips domestic supply. To date, Eswatini has escaped large-scale power outages or load shedding, but it remains heavily reliant on buying electricity from South Africa.