Eswatini’s main businesses
Eswatini, a small landlocked kingdom in Southern Africa, has a diverse economic landscape. Though limited in geographic size, the country has managed to develop a few core sectors that drive its economy, such as agriculture, manufacturing, tourism, mining, and services. Understanding Eswatini’s main businesses helps illustrate the country’s economic strengths and challenges as it seeks to diversify and grow.
1. Agriculture
Agriculture is a cornerstone of Eswatini’s economy, employing a significant portion of the population and accounting for around 8-10% of the country’s GDP. Sugarcane production is the largest agricultural activity, making Eswatini one of Africa’s largest producers of sugar. The industry is supported by a favorable climate, access to water for irrigation, and a well-established milling infrastructure. Major sugar companies, such as the Royal Swaziland Sugar Corporation (RSSC) and Ubombo Sugar, dominate this sector and contribute significantly to both employment and exports.
Besides sugarcane, Eswatini also grows cotton, citrus fruits, and maize, but these are mostly for domestic consumption. The nation also has a strong forestry sector, particularly in timber and wood pulp, managed by companies like Montigny Investments, a leader in forestry. The country exports pulpwood, which is processed into paper products in other countries, mainly South Africa.
2. Manufacturing
The manufacturing sector in Eswatini is relatively small but has been growing, especially due to the development of agro-processing industries that add value to local raw materials. Sugar refining, fruit canning, and wood pulp processing are some of the key activities. In addition, textile manufacturing has become a significant part of Eswatini’s economy, particularly driven by exports to South Africa and the United States under preferential trade agreements like the African Growth and Opportunity Act (AGOA).
The textile sector is composed of both local firms and foreign-owned companies, primarily from Asia, attracted by Eswatini’s low labor costs. Though it faces challenges, such as competition from larger textile producers and shifting trade policies, the industry remains a vital source of employment.
3. Mining
Mining has historically been a minor sector in Eswatini’s economy, contributing less than 1% to GDP. However, mineral resources such as coal and diamonds do exist, and there are efforts to attract investment in this sector. Coal mining has taken place sporadically, with the largest mines located in the western parts of the country. The Ngwenya Mine, one of the oldest iron ore mines in the world, reflects Eswatini’s potential in mineral resources, though it currently functions more as a historic site than an active mine.
4. Tourism
Tourism is an area with significant growth potential in Eswatini. The country’s scenic landscapes, including mountains, valleys, and rivers, make it an attractive destination for ecotourism. Attractions include game reserves like Hlane Royal National Park, Mlilwane Wildlife Sanctuary, and the Malolotja Nature Reserve, where tourists can experience wildlife and adventure activities. Eswatini’s rich culture, represented through festivals such as Umhlanga (Reed Dance) and Incwala, also draws international tourists interested in unique cultural experiences.
The government, in collaboration with the Eswatini Tourism Authority, has been working on improving infrastructure, accommodations, and marketing efforts to attract more visitors. The tourism industry contributes to job creation and has ripple effects in related sectors like hospitality, handicrafts, and transportation.
5. Financial Services
The financial sector in Eswatini is relatively well-developed, comprising a mix of local and regional banks, insurance companies, and microfinance institutions. The Central Bank of Eswatini regulates the sector, ensuring financial stability and facilitating monetary policy. Standard Bank, FNB Eswatini, and Nedbank Eswatini are some of the major banks operating in the country. The growth of mobile money services, driven by MTN Eswatini, has expanded financial access for people in rural areas, contributing to financial inclusion.
6. Retail and Services
Retail and other services also play a significant role in Eswatini’s economy, especially in urban areas like Mbabane and Manzini. This sector has grown due to an expanding middle class, increased urbanization, and cross-border shopping with neighboring South Africa. Popular retail chains, such as Shoprite, Pick n Pay, and Spar, have established a presence in Eswatini, catering to local consumers. Additionally, small- and medium-sized enterprises (SMEs) are prevalent in the country, especially in informal trade, which provides income for many Swazis.
7. Challenges and Opportunities
Eswatini faces several economic challenges, including high unemployment, reliance on South Africa for trade and imports, and a limited industrial base. Efforts to improve the business environment, such as easing regulatory restrictions and providing investment incentives, are underway. The government is also seeking to diversify its economy through initiatives in renewable energy, information technology, and agribusiness.
The country’s vision for growth, outlined in its Economic Recovery Strategy and the National Development Plan, focuses on improving infrastructure, enhancing education and skills development, and promoting exports. By attracting foreign investment and supporting local entrepreneurship, Eswatini aims to create a more resilient and diversified economy.
