As per the state of the youth report, over 70 per cent of Eswatini’s population is aged 35 or below, a demographic gift that can either propel the nation forward or become a heavy burden. Harnessed wisely, this youthful majority offers a vast reservoir of skills and labour to drive growth.
Neglected, it risks turning into a dependency crisis. With youth unemployment hovering around 60 per cent, the evidence is clear: We were unprepared and failed to invest strategically to reap the dividend. This is not the moment for complacency. To transform this population into an engine of prosperity, the State must adopt a targeted acceleration plan. Swift, deliberate and focused on converting potential into productivity. A demographic gift today, if squandered, will become tomorrow’s liability.
Demographic dividend
To reap a demographic dividend, theory emphasises that countries must make strategic, frontloaded investments in four critical areas. First, there must be rapid fertility decline supported by accessible reproductive health services, which reduces dependency ratios and frees resources for education and economic growth. Second, education systems must expand and improve quality, ensuring that the youthful population acquires relevant skills for modern labour markets.
Third, job creation and economic transformation are essential; economies must shift from low productivity sectors into manufacturing, services and technology to absorb the growing labour force. Fourth, strong governance and financial systems are required to channel savings into productive investments, while social protection cushions vulnerable groups.
In essence, the demographic dividend is not automatic; it is earned. Countries that succeed deliberately align population dynamics with human capital development, employment opportunities and sound economic management. Without these targeted interventions, the ‘gift’ of a youthful population risks becoming a long-term burden of unemployment and dependency.
Current actions
According to the State of the Youth Report 2026, the country’s demographic profile is both promising and perilous. Challenges are stark: Youth unemployment hovers around 60 per cent, fertility rates remain high enough to sustain dependency pressures and education outcomes are misaligned with labour market needs.
The report acknowledges that while literacy levels are strong, too many young people fall into the NEET category (Not in Education, Employment or Training), signalling weak transitions from schooling to work. Governance gaps compound the problem, with fragmented programmes and the conspicuous omission of the E500 million youth development loan sourced last year raising questions about transparency and accountability.
Remedies highlighted in the report show incremental progress across the four pillars required to harness a demographic dividend. On health, youth access to reproductive and mental health services has expanded. In education, digital skills training has reached over 12 000 young people, while YouthConnekt Eswatini and innovation hubs provide mentorship and ICT exposure.
For job creation, the Youth Enterprise Revolving Fund has disbursed E25.5 million to 540 youth-owned businesses and incubation programmes have graduated start-ups into the market. Governance has seen increased youth representation in councils and advisory platforms. Yet these interventions remain fragmented and small-scale. To truly convert this demographic gift into a dividend, the kingdom must accelerate and integrate these remedies into a unified, transparent strategy that links health, education, jobs and governance into one coherent plan.
Acceleration
To accelerate progress towards reaping the demographic dividend, the country must move beyond incremental programmes and adopt bold, integrated reforms. First, government should establish a National Youth Employment Compact that directly links private sector growth with youth absorption. This could involve wage subsidies for firms that hire young workers, mandatory apprenticeship quotas in industries receiving state support and tax incentives for companies that expand youth employment.
Such measures would ensure that skills training translates into actual jobs, rather than certificates without opportunities. In essence, accelerate the internship project currently rolled out in the kingdom to reach more emaSwati. The programme must be improved to include a re-tooling component where our youth would be upskilled to levels where they are ready and can be absorbed by the labour market, addressing the skills mismatch problem.
Second, the State should create a Youth Infrastructure and Innovation Fund separate from existing schemes, channelling resources into sectors with high employment multipliers such as renewable energy, agro-processing and digital services.
Unlike the Youth Enterprise Revolving Fund, this mechanism would provide tiered financing, from seed capital to growth stage investment, coupled with incubation hubs and mentors networks. By deliberately targeting industries that can absorb large numbers of young workers, Eswatini would shift from micro-scale interventions to transformative economic participation. The E500 million youth loan sourced last year could be utilised to set up this ecosystem.
Third, governance reforms are essential. Government should establish a Youth Accountability Dashboard, a digital platform that tracks every Lilangeni spent on youth programmes, including the E500 million loan sourced last year. This would allow citizens to monitor disbursements, outcomes and beneficiaries in real time, reducing duplication and corruption.
Coupled with institutionalised youth representation in oversight committees, such transparency would rebuild trust and ensure that resources are aligned with national development goals. In short, we must act decisively: Integrate financing, expand job-linked training and embed accountability to convert its demographic gift into a dividend rather than a curse. Business as usual is not acceptable; we need radical youth interventions.
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