AGP Executive Report

Sugar: Ubombo Sugar has been named ABF Sugar Business of the Year for a second year running, outperforming the group’s businesses in Europe and Africa despite a challenging operating climate. Growth Outlook: The IMF cut Eswatini’s growth forecast to 3.7% for 2026 and 3.4% for 2027, down from its April projections. Business Credit: Lending to large firms fell 8.9% in August to E8.4 billion, while SME credit rose 5.6% to E3.9 billion; overall business credit dropped 4.8% month on month. Trade and Industry: Finance Minister Neal Rijkenberg called for stronger African trade and more value-added production to reduce reliance on imported goods. The King also urged a wider industrial parks drive, with energy supply a key requirement. Fuel Security: Eswatini is seeking to expand strategic fuel storage from 60 to 90 days to guard against supply disruptions. Regional Trade: Mozambique has launched a US$150 million project to deepen Maputo Port’s access channel, allowing larger vessels and strengthening a key trade route for Eswatini and neighbouring markets.

Growth Outlook: The IMF cut Eswatini’s 2026 growth forecast to 3.7% from 4%, and its 2027 estimate to 3.4%, citing global risks. Fuel Security: King Mswati III wants strategic oil storage expanded from 60 to 90 days to shield the economy from supply shocks. Trade and Industry: Finance Minister Neal Rijkenberg urged African countries to trade more with one another and produce higher-value goods locally. The King also called for industrial parks across Eswatini, while the Youth Enterprise Revolving Fund backed stronger local manufacturing. Business Pulse: Private-sector credit fell 1.4% in August, led by a 4.8% drop in business borrowing. Blue Economy: Eswatini is developing a plan to grow fisheries and aquaculture, create jobs and reduce reliance on imported fish.

Industrialisation: King Mswati III challenged government and emaSwati in Taiwan to make the proposed E6 billion Taiwan Industrial and Innovation Park a model for nationwide growth, warning that power supply and sustainable funding are key hurdles. Local Manufacturing: YERF chief executive Mandla Nkambule says youth support should help entrepreneurs make goods locally and reduce reliance on imports. Business Climate: Private-sector credit fell 1.4% month-on-month to E23.5 billion in August, with business borrowing down 4.8% to E12.3 billion, despite credit remaining above last year’s level. Investment & Jobs: Eswatini’s Airport City plan targets E12 billion in investment and 20,000 jobs by 2037, with 40% of addressable spending directed to local SMEs. Trade & Transport: Mozambique has launched a $150 million dredging project to let larger vessels reach Maputo Port and strengthen regional cargo links. Ecobank also plans to join China’s CIPS payments network as demand grows for yuan trade settlements.

Business Credit: Private-sector credit fell 1.4% month-on-month to E23.5 billion in August, as lending to businesses dropped 4.8% to E12.3 billion, despite credit remaining up 10.5% year-on-year. Airport Investment: ESWACAA’s Airport City and special economic zone plan targets E12 billion in investment and 20,000 jobs by 2037, with 40% of addressable spending intended for local SMEs. Entrepreneurship: FNB Eswatini unveiled a E586,591 Toyota Hilux as the top prize in its 2026 Entrepreneur of the Year Awards, saying mobility can help SMEs expand and serve customers. Skills & Jobs: Royal Eswatini Sugar Corporation awarded 82 employees certificates recognising workplace experience, which can help them qualify for consideration for permanent roles. Tourism: The Eswatini Tourism Authority urged travellers to verify festive-season holiday packages and report suspected scams. Transport Costs: Senators backed a 25% public-transport fare increase but urged government to find a lasting solution to repeated hikes. Conference Business: Palazzo ICC says major events are creating work across hospitality, transport, security and supply chains, with opportunities for local service firms.

Airport Investment: ESWACAA’s Airport City and special economic zone plan targets E12 billion in investment and 20,000 jobs by 2037, with 40% of addressable spending earmarked for local SMEs. Business and Tourism: The Ezulwini ICC says events have generated jobs and contracts for emaSwati in hospitality, transport, security and technical services, while economists see wider potential for local suppliers. Trade Finance: Ecobank plans to join China’s CIPS payment system as African businesses seek to settle more trade in yuan. Eswatini, however, is the only African country excluded from China’s new tariff-free import policy. Agriculture and Industry: AGSPAC reported a E752,948 loss in its first 18-month results as it searches for investments. Separately, the government is developing a joint procurement framework to help leather businesses access production materials. Local Skills: Royal Eswatini Sugar Corporation awarded 82 workers certificates recognising workplace experience, which could help them qualify for permanent roles.

Infrastructure: AfDB-backed plans for the Ethemba Dam and water-transfer tunnel have advanced to updated environmental assessments. The project aims to expand irrigation and strengthen food and energy security, but still needs approvals; resettlement is estimated at E949.9 million. Construction: Foreign firms registered E6.13 billion in construction works in 2025/26—about 79% of this year’s capital budget. The figures cover different years and categories, and the works value is not government spending alone. Business Tourism: Ezulwini Palazzo’s major conferences are bringing renewed activity to hospitality and could create work for local caterers, transport, security and event-service firms. Local Industry: A proposed joint procurement framework could help leather businesses and artisans secure production materials more efficiently. Energy and Jobs: A new TVET programme will train 21 young people in solar installation, offering a route into a growing sector as power costs weigh on households and businesses.

Agriculture & Jobs: An African Union seed summit in Eswatini has put investment and employment in the spotlight. Economist George Choongwa says commitments must translate into stronger farming, processing, storage and market links. Finance: Botswana’s public officers’ pension fund will fully underwrite Letshego’s P800 million rights offer as the lender cuts debt and scales back its African operations. Public Spending: EPTC is set to receive a E455 million government loan to address long-running problems, including pension liabilities, prompting questions about how the funding will deliver lasting change. Energy Costs: Coal mining at Lubhuku has yet to begin, leaving Eswatini reliant on imported power; EEC’s electricity purchases and wheeling charges cost E2.096 billion in 2024/25. Tourism Investment: A new hotel management partnership aims to position Ezulwini Palazzo as a destination for regional and international visitors.

Energy Security: Eswatini’s Lubhuku coal project has yet to begin, despite a licence. The country remains reliant on imported electricity, with EEC’s power-purchase bill reaching E2.096 billion in 2025, up from E1.774 billion a year earlier. Agriculture and Jobs: An African Union seed summit in Ezulwini has been urged to deliver practical investment, agro-processing and jobs by linking farming to storage, transport and markets. Transport Costs: Operators say the approved 25% fare rise falls short after fuel prices climbed 59% since the last adjustment, and are calling for better planning and a functioning oil reserve. Employment: World Bank estimates put Eswatini’s unemployment rate at 34.2% in 2025, the highest among countries with comparable data. Skills and Energy: A government solar-installation programme is recruiting 21 young trainees, offering a route into a growing sector as high electricity costs push households and businesses to seek alternatives.

Transport Costs: Operators say the approved 25% fare rise falls short after fuel costs climbed 59%; some routes have already seen fares jump 38.46%, squeezing commuters. Taiwan Investment: King Mswati III and President Lai Ching-te pledged closer economic ties, with Taiwan seeking investors for an industrial innovation park in Eswatini. Jobs and Skills: Eswatini’s 2025 unemployment rate reached 34.2%, the highest among countries with comparable World Bank estimates. A government solar-installation programme is offering 21 young people training for work in the growing sector. Citizen-Owned Business: Retail leaders say local entrepreneurs are ready to take over more businesses, but need better access to finance. Airport Ambitions: ESCCAA is targeting E12 billion in investment and 20,000 jobs by 2037 as plans for the airport strategy advance.

Taiwan Investment: During his state visit, King Mswati III reaffirmed ties with Taiwan, whose President Lai Ching-te urged more Taiwanese companies to invest in Eswatini and backed a planned Taiwan Industrial Innovation Park. Tourism: Ezulwini Palazzo has signed a hotel management agreement aimed at positioning the development as a regional destination. Jobs & Enterprise: The World Bank’s latest comparable estimate puts Eswatini’s 2025 unemployment rate at 34.2%, the highest globally; the CEEC chair says local entrepreneurs are ready to enter retail but need access to finance. Airport Economy: ESWACAA aims to attract E12 billion and create 20,000 jobs by 2037 through an airport city and special economic zone. Business Connectivity: MTN Eswatini has launched satellite backup for business internet services.

Tourism Investment: A new hotel-management partnership aims to make Ezulwini Palazzo a world-class destination, linking Eswatini with regional and international markets. Airport Growth: ESWACAA’s strategy targets E12 billion in investment and 20,000 jobs by 2037 through an airport city and special economic zone; UNDP-backed UniPod plans to help local firms develop and produce goods for air cargo. Jobs and Ownership: World Bank estimates put Eswatini’s 2025 unemployment rate at 34.2%, the highest among countries with comparable data. Meanwhile, CEEC chair Lincoln Motsa says local entrepreneurs and experienced retail workers are ready to take up opportunities under proposed citizen-empowerment rules, but need access to finance. Business Resilience: MTN Eswatini has launched hybrid internet access designed to keep businesses connected during fibre cuts and other disruptions. Regional Livestock Trade: South Africa says it has supplied 50,000 foot-and-mouth disease vaccine doses to Namibia, Eswatini and Lesotho this year, as officials call for closer coordination to contain outbreaks and restore cross-border trade.

Jobs Crisis: Eswatini recorded the world’s highest unemployment rate in comparable 2025 estimates, at 34.2% of the labour force, underlining the scale of the challenge in creating formal work. Citizen-Owned Business: Retailers could shift into local hands under proposed empowerment rules, but CEEC Chair Lincoln Motsa says aspiring owners need better access to finance. Airport Investment: ESWACAA is targeting E12 billion in investment and 20,000 jobs by 2037 as it develops the airport into a regional business hub; UNDP-backed plans for a University Innovation Pod aim to help local firms produce goods for air cargo markets. Taiwan Partnership: President Lai Ching-te urged deeper cooperation with Eswatini in technology, infrastructure and energy, and called for more Taiwanese companies to invest in the kingdom. Business Connectivity: MTN Eswatini has introduced a hybrid internet service designed to help businesses stay online during fibre cuts and other network disruptions.

Airport Investment: Swati-owned Datamatics will lead data collection for an E12 billion plan to turn King Mswati III International Airport into a regional aviation hub, with up to 20,000 jobs targeted. UNDP-backed UniPod plans to help businesses develop and produce goods for the airport’s cargo ambitions. Business Resilience: MTN Eswatini has launched a hybrid internet service designed to keep businesses connected during fibre cuts, power outages and infrastructure works. Local Value-Add: Eswatini’s leather sector could grow from E78.7 million to E943.8 million by processing more hides locally; a proposed joint procurement scheme aims to help small firms secure affordable materials. Economic Pressures: The World Bank says Eswatini’s currency fell by up to 7.2% in the second quarter amid regional market turmoil. It also expects Sub-Saharan Africa’s median inflation to rise to 5.5% this year, citing higher fuel, food and fertiliser costs. Finance: ENPF is piloting a claims service that aims to pay eligible claims of up to E5,000 within three hours. FNB is seeking more than E14 million from two former employees over alleged irregular lending; the claims have not been proven in court.

Currency & Inflation: The World Bank says the lilangeni fell by up to 7.2% in the second quarter as global tensions pressured African currencies. It also expects regional median inflation to rise to 5.5% this year, raising risks for Eswatini’s fuel, food and input costs. Agriculture Investment: At the African Union Seed Summit in Ezulwini, King Mswati III urged investors to bring capital, technology and skills to the sector. Agriculture Minister Mandla Tshawuka said agro-technology and funding could help create youth jobs and grow farming businesses. Leather Value Chain: Eswatini could lift leather-sector value from E78.7 million to E943.8 million by processing hides locally. A joint procurement plan aims to help small businesses secure more affordable materials. Public Finances: The IMF says government debt rose to 44.8% of GDP in FY2025/26, while the fiscal deficit widened to 7.8%, leaving less room to absorb shocks. Member Services: ENPF is piloting claims payments within three hours for eligible claims of up to E5,000.

Agriculture & Jobs: Agriculture Minister Mandla Tshawuka says technology, innovation and targeted funding can make farming a stronger source of jobs for young people. At the AU Seed Summit in Ezulwini, leaders urged investment in seed research, markets and climate resilience — and called for national action on their recommendations. Leather Value Chain: Eswatini could raise the value of hides and skins from E78.7 million to E943.8 million by expanding local processing. A proposed joint procurement framework aims to help leather businesses secure more affordable, reliable inputs. Member Services: ENPF is piloting a claims service that aims to pay eligible claims of up to E5,000 within three hours. Public Finances: The IMF warned that losses at the Eswatini Electricity Company could eventually require taxpayer support, as rising debt-servicing costs add pressure to government finances. Regional Trade: Eswatini and Lesotho want to deepen trade and agricultural cooperation, with progress to be reviewed annually. Markets: The lilangeni fell by more than 6% against the US dollar during the second quarter, though the World Bank said much of the currency pressure across the region had eased by August.

IMF Debt Warning: The IMF says Eswatini’s debt outlook is worsening as borrowing costs rise faster than growth, with the debt-to-GDP ratio climbing to 44.8% in FY2025/26 and the fiscal deficit widening—raising the risk of a debt spiral without adjustment or stronger revenue. EEC Taxpayer Risk: In a separate IMF note, the Eswatini Electricity Company’s financial deterioration could eventually force government support via subsidies, transfers, guarantees or recapitalisation, putting pressure on the public purse. Central Bank Funding: The Central Bank raised E1.877bn through government bonds in 2025/26, beating its E1.4bn target, reflecting steady investor demand. Citizens Economic Empowerment Rules: Draft CEE Regulations propose a two-tier retail system: activities below E8m turnover reserved for targeted citizens, while larger firms above E8m may include non-citizens only through citizen-majority joint ventures. Local Finance Glitch: Civil servants can borrow again after a week-long disruption to new loan processing linked to access problems on the government IFMIS system. Trade & Diplomacy: Eswatini and Lesotho plan deeper trade and cultural cooperation with annual progress reviews, while Eswatini’s new Taiwan envoy reiterates continued advocacy for Taiwan’s participation in international organisations. Regional Business Signals: MTN Eswatini and Lubane Cooperative launch a five-year device loan facility to expand access to smartphones and data.