Mbabane – Eswatini’s currency, the Lilangeni, gained value against the United States Dollar, British Pound and Euro during the first quarter of 2026, reflecting positive developments in the domestic economy despite uncertainty in global markets.
According to the 2026 First Quarter Economic Bulletin released by the Ministry of Economic Planning and Development, the stronger currency was recorded during a period in which Eswatini continued to demonstrate resilience amid rising geopolitical tensions and weaker global growth prospects.
A stronger Lilangeni can help reduce the cost of imported goods and services, easing pressure on businesses and consumers who rely on products purchased from abroad. It can also help contain inflation by lowering the cost of imports.
The bulletin noted that inflation remained low at 1.9 percent during the review period, with food prices as well as housing and utility costs remaining relatively stable.
The positive currency performance coincided with continued growth in domestic economic activity. Eswatini’s economy expanded by 5.7 percent in the last quarter of 2025, while private sector credit increased by 3.3 percent.
Business lending recorded an even higher increase of 6.9 percent, with manufacturing and construction firms accounting for a significant portion of the additional borrowing. Increased access to credit often supports investment, production and employment opportunities.
Despite these encouraging developments, the country recorded a trade deficit during the quarter. Imports amounted to E10.065 billion, slightly exceeding exports of E10.045 billion.
The report also highlighted risks facing the global economy, particularly tensions in the Middle East, which could affect international trade, commodity prices and economic performance across many countries.
Nevertheless, the bulletin concludes that Eswatini’s economy remained on a stable path during the review period, supported by low inflation, economic growth, increased business activity and a stronger national currency.
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