Eswatini strengthens financial market foundations

MBABANE – Eswatini’s financial sector is entering a transformative phase as indicated by pension reform, growing regional integration and an increasing commitment to global transparency standards.

The latest Absa Africa Financial Markets Index (AFMI) 2025 places the kingdom among the continent’s most improved countries in pension fund development and market transparency, crediting reform momentum led by the Eswatini National Provident Fund (ENPF) and the Central Bank of Eswatini.

The report, produced by Absa Group in partnership with the Official Monetary and Financial Institutions Forum (OMFIF), benchmarks 29 African economies based on six pillars assessing financial market depth, access to foreign exchange, transparency, pension fund development, macroeconomic stability and legal enforceability.

Eswatini ranked 14^th overall with an overall score of 47, maintaining its standing amid challenging global economic conditions. 

One of the most striking developments noted in the 2025 AFMI is that Eswatini recorded the largest nominal increase in pension fund assets per working-age person across the continent.

The value rose to US$5 067 (approximately E95 000) at the end of 2024, up from US$3 511 (around E66 000) in 2023.

This growth reflects not only increased asset accumulation within the ENPF but also a shift towards broader inclusion under the ongoing transformation of the Fund into a National Pension Fund (NPF).

*…

ESE steps towards regional integration

MBABANE – In addition to pension reform, the report highlights the Eswatini Stock Exchange’s (ESE) entry into the African Exchanges Linkage Project (AELP) – a move described as a major step towards regional integration. 
The AELP, a continental initiative connecting leading stock exchanges in Africa, allows cross-border trading and investment between participating countries, including South Africa, Kenya, Nigeria and Botswana. Eswatini’s inclusion signals its growing readiness to participate in deeper regional financial cooperation. 

Through the AELP, Eswatini will gain access to a broader investor base, improved liquidity and knowledge-sharing opportunities with more advanced markets. For local investors and listed companies, the integration promises exposure to new asset classes and improved visibility across Africa.  Financial observers believe the ESE’s participation will also encourage local corporates to list, boosting domestic market activity.

In 2025, Eswatini scored 23 points under the Market Depth pillar, a modest score that reflects its small but developing capital market. However, joining the AELP offers the structural foundation to improve that ranking in the coming years.

In a year marked by global currency volatility, Eswatini has taken concrete steps to improve transparency in its foreign exchange markets.

*…

Table macroeconomic environment bolsters confidence

MBABANE – Eswatini’s macroeconomic environment and transparency pillar score remains one of its strongest at 77 points, ranking the kingdom among Africa’s top 10 performers.

The AFMI credits this to sound fiscal management, a relatively stable currency peg under the Common Monetary Area and strong monetary policy communication.

The report notes that Eswatini has maintained commendable levels of policy transparency, with regular publication of budget reports, monetary policy statements and Central Bank communications.These efforts help reduce uncertainty and ensure investor trust in the country’s economic direction.

In comparison, Eswatini’s performance in this pillar is on par with regional leaders such as Botswana and Tanzania – economies lauded for their policy stability and prudent fiscal discipline.  Economists argue that this stability positions Eswatini favourably as global capital becomes increasingly selective amid tightening monetary conditions in advanced economies.

“Macroeconomic credibility is a currency on its own,” said a regional analyst quoted in the report, adding that countries with predictable policies are better placed to attract long-term investment. Despite progress in key pillars, Eswatini’s weakest link remains its legal and regulatory environment, where it scored 10 points out of 100, one of the lowest ratings in Africa.

*Full article available in our publication.