Home Business Eswatini should focus on economic stability over growth
Business

Eswatini should focus on economic stability over growth

Share
Growth rates
Growth rates
Share

MBABANE – Eswatini should prioritise economic stability and sustainability over an aggressive pursuit of growth as global and regional uncertainties increase the risk of economic shocks.

This is according to Economist Dr George Choongwa.

Choongwa, Regional Coordinator at the Southern African Research Foundation for Economic Development (SARFED), said the country’s relatively small and externally dependent economy made it particularly vulnerable to disruptions in global markets.

He argued that the current economic environment called for policymakers to concentrate on strengthening the foundations of the economy rather than chasing headline growth rates that could prove difficult to sustain.

His comments come against the backdrop of a projected moderation in Eswatini’s economic growth after a strong performance in 2025, when real Gross Domestic Product (GDP) growth accelerated to 4.9 per cent, according to figures cited in his analysis.

Choongwa said the anticipated slowdown should not necessarily be interpreted as a weakness in the economy, but could instead provide an opportunity for government to consolidate recent gains and strengthen the country’s resilience.

“While such findings might be correct, it is also critical to state that such development can and should be considered as a gateway for the sustainability and competitiveness of Eswatini’s economic landscape,” he said.

The economist’s position comes as the International Monetary Fund (IMF) and other institutions continue to highlight the risks facing small, open economies from global financial conditions, energy prices, weaker external demand and developments in major trading partners.

The African Development Bank (AfDB), in its 2026 African Economic Outlook, projects Africa’s economy to grow by 4.2 per cent in 2026, down from an estimated 4.4 per cent in 2025. It said the outlook was being shaped by geopolitical tensions, tighter global financial conditions and supply-chain disruptions.

For Choongwa, these conditions reinforce the need for Eswatini to place macroeconomic stability at the centre of its policy agenda.

Growth rates

Share
Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

Police seize 58 illegal firearms, 509 rounds of ammunition

MBABANE – The Royal Eswatini Police Service (REPS) seized 58 illegal firearms and 509 live rounds of ammunition during the period between October...

Schools open as scheduled – PS

MBABANE –Principal Secretary in the Ministry of Education and Training, Nanikie Mnisi, has affirmed that schools will reopen as scheduled in accordance with...

Mbuso Simelane accused of attempts to divert E10m public funds

MBABANE – The Eswatini Medical Christian University (EMCU) Council has alleged that the Chairman of the committee appointed to investigate the affairs of...

2 bakkies, two attitudes, one serious appetite for adventure

Whether it is conquering rough terrain, hauling heavy loads or simply making the daily drive more exciting, Foton’s Tunland range brings serious capability...

Bombing suspects wanted in Botswana for E1.5m cellphone theft

MBABANE – Botswana has filed an application seeking the provisional arrest of two nationals detained in Eswatini over an alleged P1 277 989.80...

Related Articles

Retail, wholesale sector steps up for e-invoicing pilot

MBABANE – Eswatini’s retail and wholesale businesses have stepped forward to support...

SBS Bank holds 1st AGM, nominates new Board

MBABANE - SBS Bank Eswatini has taken another major step towards becoming...

Africa’s economic momentum gathers pace – Standard Bank Group

… as savings and cross-border trade activity accelerate MBABANE - Africa’s economic...

Private sector credit reaches E23.8bn in July

MBABANE - Private sector credit edged higher to E23.8 billion in July...