BY PHUMELELE MKHONTA
MBABANE– The digital economy for Eswatini is about to blossom!
According to a World Bank Digital Economy Diagnostic for Eswatini that was released today, the digital economy presents Eswatini with a range of opportunities to advance its economic growth and improve both public and commercial services.
The five pillars of Eswatini’s digital economy vare digital infrastructure, digital platforms, digital financial services, digital skills, and digital entrepreneurship – are evaluated in the paper. The Digital Transformation Strategy for Africa, which aims to see every African citizen, company, and government digitally empowered by 2030, is supported in part by the World Bank through the Digital Economy for Africa (DE4A).
According to a press statement sent out by the World Bank, Eswatini might gain from a digital revolution, which had the ability to promote inclusive and sustained economic growth and give the nation’s young labour much-needed jobs. The speeding up of technological diffusion may offer a chance to open up new routes for receiving high-quality public and private services.
“Farmers, who make up 70 per cent of the population of Eswatini, will gain from climate wise agriculture since it will increase the productivity of their farms and improve their standard of living. According to Marie Francoise Marie-Nelly, Country Director for South Africa, Botswana, Namibia, Lesotho, and Eswatini, putting the suggestions of the Digital Economy Diagnostic for Eswatini into practise will significantly advance that country’s economy.
“The Digital Economy Diagnostic for Eswatini evaluates the existing state of the digital economy and offers suggestions for continued development in an effort to assist government institutions and stakeholders. This was accomplished by an evaluation of the five key pillars supporting Eswatini’s digital economy, based on discussions with pertinent public and commercial parties,” read the statement.
The research found that penetration rates in the field of digital infrastructure remained low.
The press release also revealed that according to estimates using unique users, mobile broadband penetration in 2021 will only be 35 per cent. The disparity in usage is partly caused by the high cost of both fixed and mobile internet services. Additionally, the lack of competition in the broadband market is largely to blame for the underdevelopment of the digital infrastructure.
“The diagnosis suggested spending money to upgrade digital infrastructure in order to keep up with the rising demand for internet services. Additionally, it states that the unbundling of the Eswatini Posts and Telecommunications Corporation (EPTC), along with the implementation of significant regulatory safeguards, will be a crucial step in enhancing the availability and affordability of broadband services in the nation.
“The research made note of the opportunity to improve the experience and advantages of users of public and private sector digital platforms, as well as a huge chance to strengthen compliance, efficiency, and transparency in the public sector by strengthening public sector platforms. It was discovered that digital platforms including e-commerce marketplaces and digital banking services were immature and thus underutilised.
“Eswatini has worked together for more than 20 years to modernise the payments landscape, and as a result, innovative digital financial services may now be supported by a strong financial infrastructure. The creation of a financial technology (Fintech) section at the Central Bank of Eswatini is one example of how Eswatini authorities, among others, are committed to developing digital solutions and enhancing access to financial services (CBE). The evaluation concludes that the ecosystem for digital financial services is still developing and that current attempts are primarily motivated by mobile money and narrowly focused on the payments sector. Furthering acceptance, accessibility, and innovation would need to ensure complete interoperability between banks and non-banks and between mobile money services.”
According to the press statement which is currently breaking the internet, despite the growing demand and significance for digital skills in Eswatini, the diagnostic revealed that the lack of sufficient educational curriculum and high-quality training considerably hinders the development of these talents.
“In order to promote a population that is digitally literate and workforces that are digitally competent, the research suggests that the Government of Eswatini adopt comprehensive policies and implementation plans for developing digital skills.
“The paper adds that Eswatini’s entrepreneurial ecosystem is the least developed in the Southern African area in terms of digital entrepreneurship, trailing only Lesotho. The majority of the private sector in Eswatini is made up of microbusinesses, which are mostly run by subsistence entrepreneurs.
“The evaluation emphasises the commitment of the Government of Eswatini to fostering digital entrepreneurship, which is demonstrated by the establishment of the Royal Science and Technology Park, a parastatal organisation under the Ministry of Information, Communication, and Technology (MICT), which includes an incubator for digital and digitally enabled businesses.
“Last but not least, the report emphasised cross-cutting issues, such as suggestions to enhance institutional coordination, bridging the urban-rural digital divide regarding differences in access to digital infrastructure and services between rural and urban populations, addressing unresolved regulatory gaps, and strengthening implementation of the legal and regulatory framework,” said the statement.
In this new context, the public sector performs a crucial dual role as a user of digital technologies in the provision of essential goods and services and as a regulator of the roles and activities connected to the digital economy. The relevance of the digital revolution is recognised by the Eswatini government. In Eswatini’s National Development Plan (NDP) 2019–2022, the ICT sector is highlighted as a national priority because it has been identified as a catalyst for sustainable development and economic progress.
“With a thorough plan for growth and integration into the larger economy, this approach will completely transform the nation’s digital economy. The strategy specifies the regulations, expenditures, and infrastructure required to support a creative and inventive digital industry that will lead to economic expansion and job creation,” said Her Royal Highness Princess Sikhanyiso, the Minister of Information, Communications, and Technology. Overall, the results of the diagnostic indicate that Eswatini’s digital economy’s potential has not yet been completely realised. A coordinated and comprehensive strategy will be required to create an inclusive digital economy because each of the pillars is crucial in and of itself while also relying on and supporting the others.
