WFP delivered emergency food assistance to displaced families in Goma, who continue to reside in collective sites like schools, markets, and churches. In collaboration with NRC, WFP has supported these families to help them return to their villages. WFP provide in-kind food, including beans, maize meal, salt, and vegetable oil. At the same time, NRC offered cash assistance to help families buy essentials and cover transportation costs to their villages, easing their resettlement process. WFP’s targeted food assistance reached approximately 10,000 displaced people.
Eswatini’s economy is grappling with a delicate balance of cautious optimism and persistent vulnerabilities, according to the latest quarterly bulletin from the Ministry of Economic Planning and Development.
The report highlights the kingdom’s struggle to maintain growth amid shifting global trade policies, volatile commodity prices, and domestic sectoral contractions.
The economy recorded a 0.3% year-on-year contraction in the last quarter, primarily driven by declines in the primary and secondary sectors.
Agriculture, forestry, and mining fell by 7.3%, with mining output, particularly platinum group metals, plunging 28.9%.
Forestry and crop production also contracted, although animal production continued to show solid growth. Manufacturing and utilities in the secondary sector shrank by over 10%, while construction faced uneven performance despite government megaprojects such as the Mpakeni Dam and the International Convention Centre.
In contrast, the tertiary sector expanded by 4.0%, supported by wholesale and retail trade, finance, ICT, real estate, and public administration. This growth reflects government employment initiatives and investment confidence. Meanwhile, headline inflation fell from 4.0% in Q1 to 3.1% in Q2, easing pressure on households and improving affordability for staple foods such as maize meal, vegetables, and rice.
Despite these positive signs, fiscal and trade pressures remain significant. The government recorded a deficit of E1.8 billion in the first quarter of the 2025/26 financial year, driven by rising employee compensation and operational costs, while revenues declined due to falling SACU receipts and fuel tax income. Merchandise exports dropped 9.3%, led by sugar and textile declines, while imports rose slightly, resulting in a Q2 trade deficit of E325 million. SACU continues to dominate Eswatini’s trade, accounting for more than 70% of imports and nearly three-quarters of exports.
Strategic policy interventions are seen as essential. Measures such as targeted subsidies for agriculture, tax incentives for export-oriented industries, and public-private partnerships in construction and infrastructure could strengthen competitiveness and foster diversification.
While Eswatini’s modest growth and declining inflation provide a foundation for optimism, analysts warn that structural weaknesses and exposure to global volatility require decisive policy action. Investments in innovation, export capacity, and fiscal management are critical to steering the kingdom toward sustainable, inclusive economic development.
The report underscores that without targeted reforms, Eswatini risks being buffeted by global and regional uncertainties, despite pockets of domestic growth and progress in certain sectors.
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