Mbabane- Eswatini’s economy grew by 5.6 per cent in 2025, up from 3.0 per cent the previous year, and
is expected to maintain its momentum this year as government and private-sector investment in
projects worth more than E17.6 billion gathers pace.
The latest figures from the Central Bank of Eswatini show that the economy performed significantly
better in 2025, with the services sector leading the recovery while increased construction activity
provided further support.
The Bank expects the economy to grow by another 5.2 per cent in 2026, largely on the back of major
infrastructure developments, with construction alone projected to expand by 31.4 per cent.
According to the Central Bank’s Annual Economic Review Report 2025/26, the services sector grew by
7.6 per cent last year, driven largely by strong performances in wholesale and retail trade as well as
financial services.
Wholesale and retail trade, which contracted by 3.3 per cent in 2024, recovered strongly to record
growth of 9.7 per cent in 2025. Financial services also rebounded, growing by 11.8 per cent after
registering a 3.2 per cent contraction in the previous year.
The Central Bank attributed part of the improvement in domestic demand to public-sector salary
adjustments and relatively low inflation, which helped boost real incomes during the second half of the
year.
However, the recovery was not uniform across all sectors.
The secondary sector grew by 4.4 per cent, down from 6.6 per cent in 2024, while manufacturing growth
slowed considerably from 7.8 per cent to 2.9 per cent.
The slowdown in manufacturing is significant for Eswatini because much of the sector is export-oriented
and remains vulnerable to weaker demand in international markets and changes in trade conditions.
Mining also produced mixed results, with coal production declining by 5.9 per cent to 463 095 metric
tonnes. Despite this, the value of mining and quarrying sales more than doubled, rising from E363.3
million in 2024 to approximately E809.4 million last year.
The improvement was supported by gold and quarrying. Gold production increased by 42.2 per cent to
53 kilogrammes, while quarried stone production rose by 57.1 per cent to 293 868 cubic metres, largely
on the back of increased construction activity.
The construction sector is expected to become even more important this year as several large projects
move ahead.
Among the projects identified by the Central Bank are the E2.7 billion Mpakeni Dam, the E2.6 billion
MR14 and MR21 road projects, the E5.3 billion Strategic Oil Reserve, the E2.9 billion 75MW solar plant,
the E2.9 billion Central Bank headquarters and the E1.2 billion Lower Maguduza hydro project.
The projects, which collectively amount to more than E17.6 billion, are expected to generate activity
across a wide range of industries, including construction, manufacturing, transport, engineering,
financial services and professional services.
However, the Central Bank has cautioned that the availability of financing will remain critical to the
implementation of the projects.
Fiscal pressures, uncertainty surrounding Southern African Customs Union revenues and delays in
external financing could affect government’s ability to maintain capital expenditure, while delays in
implementing projects could reduce their expected contribution to economic growth.
Meanwhile, the country’s energy sector recorded encouraging developments in 2025, with local
electricity generation increasing by 18.6 per cent.
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