E-COMMERCE IN ESWATINI REMAINS RELATIVELY LOW

MBABANE – The latest Digital Readiness Assessment Report (2024) has revealed that the uptake of e-commerce remains relatively low in Eswatini.

This report has been provided following a stakeholder survey conducted through a partnership between the Ministry of Information, Communication and Technology (ICT) and the United Nations Development Programme (UNDP). UNDP Resident Representative Henrik Franklin said the findings in this report highlight both the opportunities and challenges inherent in achieving a digitally-inclusive Eswatini. Franklin said the findings emphasise the need for strategic investments in digital infrastructure, capacity building and policies that ensure equitable access to technology for all, particularly for youth, women and marginalised communities.

Respondents of the survey attributed the low uptake of e-commerce in Eswatini mainly to a lack of payment systems and gateways, lack of tech providers, lack of external finance (e.g., bank credits, investments), lack of internal finance (e.g., due to lack of profitability), unfavourable policy systems and lack of internet users.

Low

The low uptake of e-commerce in Eswatini can further be attributed to the low adoption of broadband services. In 2021, mobile broadband penetration was estimated to be at 35 per cent, when calculated with unique subscribers. According to the World Bank (2022), the low adoption rate of broadband services may be due to a lack of affordability of both fixed and mobile internet services. Generally, the expensive cost of the internet has also negatively impacted the rollout and usage of e-Government and e-commerce services, as well as entrepreneurial growth in Eswatini. This affects the ability for local enterprises to access other markets and grow their businesses through the internet.

Vibrant

A vibrant e-commerce is important for Eswatini to fully take advantage of the trade opportunities presented by African Continental Free Trade Area (AfCFTA). These findings points to the need for investments and development in the digital ecosystem to enable e-commerce in Eswatini, including putting in policy frameworks that will be supportive of online commerce.
Meanwhile, financial inclusion is high in Eswatini, reported to be at 87 per cent in 2023, yet the use of digital financial services is low.

Highlighted

Several significant barriers hindering the use of digital financial services were highlighted by stakeholders, including concerns about data privacy and security, lack of knowledge about digital financial skills, lack of trust on digital transactionsm and limited access to internet or mobile networks.  Building trust and strengthening data protection measures, financial literacy and improving the underlying digital infrastructure is necessary to drive greater adoption and usage of digital financial services in Eswatini. Furthermore, perceptions from the stakeholder survey show varying levels of corporate digital responsibility practices among private businesses in Eswatini. While 55 per cent of respondents consider policies or reports on digital responsibility common, only 10 per cent find them to be very common.

Underscoring

A majority of the respondents (75 per cent) indicated that there is no efficient management of e-waste in Eswatini, underscoring the lack of national policies promoting the recycling of electronic devices or waste in the country. As the country shifts to renewable energy, a plan for disposing of solar panels is important.

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