The Economy of Eswatini: A Historical Overview



Eswatini, formerly known as Swaziland, is a small landlocked country in Southern Africa. It is bordered by Mozambique to the east and South Africa to the north, west, and south. It is one of the smallest countries in the region, with a population of just over 1.2 million people. Despite its small size, Eswatini has a diverse and vibrant economy. In this article, we will explore the history of the Eswatini economy and how it has evolved over time.

The economy of Eswatini has been shaped by its colonial history, its landlocked geography, and its close ties with South Africa. Prior to the 19th century, the area now known as Eswatini was home to a number of small chiefdoms. These chiefdoms were largely independent and relied on subsistence farming and small-scale trading for their livelihoods.

In the late 19th century, the area was colonized by the British and incorporated into the Union of South Africa. This brought about a period of economic development in Eswatini, as the colonial government invested in infrastructure and mining. The economy was largely reliant on the export of sugar, cotton, and tobacco, as well as the mining of coal and gold.

After independence in 1968, Eswatini quickly established itself as a constitutional monarchy. This allowed the country to move away from its colonial past and focus on developing its own economy. The government implemented a number of policies to promote economic growth, including the privatization of state-owned enterprises and the liberalization of trade.

In the 1990s, Eswatini began to focus on developing its tourism industry. This was a major boost to the economy, as it brought in much-needed foreign currency. The country also began to diversify its economy, focusing on manufacturing and agricultural production.

Today, Eswatini is a middle-income country with a growing economy. The country’s main economic sectors are tourism, manufacturing, and agriculture. It is also a major exporter of sugar, timber, and citrus fruits. The government has also invested heavily in infrastructure, including roads, bridges, and telecommunications networks.

Despite its economic progress, Eswatini remains a poor country. Poverty is still widespread, with many people living on less than $2 a day. The country also suffers from high levels of inequality, with the richest 10% of the population controlling more than 50% of the country’s wealth.

The future of the Eswatini economy is uncertain. The government is making efforts to diversify the economy and reduce poverty, but much work still needs to be done. In the coming years, it will be important for the government to focus on creating jobs, investing in infrastructure, and promoting economic growth. With the right policies in place, Eswatini can become an even more prosperous country in the future.