A Digital Economy Diagnostic conducted by the World Bank for Eswatini in February 2023 assessed the potential of the digital economy in the country by examining five foundational pillars: digital platforms, digital infrastructure, digital financial services, digital skills development, and digital entrepreneurship. The report revealed that the potential of the digital economy in Eswatini has not yet been fully realised. It also revealed that digital platforms in the public sector requires improvement, while underdeveloped e-commerce marketplaces and digital financial services were found to be underused. Penetration rates for mobile broadband are low, and digital infrastructure is underdeveloped due to the lack of competition in the broadband sector.
Although digital financial services are supported by a strong financial infrastructure, the ecosystem is still evolving, with a singular focus on the payments segment driven by mobile money. Digital skills development is significantly hampered by limited availability of educational curricula and quality training, despite growing demand. The report notes that digital entrepreneurship in Eswatini is underdeveloped, with a predominantly micro-entrepreneurial private sector operated by subsistence entrepreneurs.
The report suggests addressing regulatory gaps and strengthening the legal and regulatory framework to fully realise the potential of the digital economy in Eswatini. This also echoes Grant Thornton’s International Business Report (IBR) mid-market survey H2 2022 that shows 30% of the companies surveyed stated a lack of capability, capacity, or execution experience as challenges, when asked what limitations their businesses facing in attaining digital transformation and automating business processes. The IBR surveyed just over 100 mid-market companies in South Africa. The IBR tracks sentiment among global mid-market business leaders.
