Africa-Press – Eswatini. While global markets wobble and uncertainty grips world trade, Eswatini is holding its nerve.
Central Bank Governor Dr. Phil Mnisi says the economy is gaining ground, and if the numbers are anything to go by, the Kingdom is gearing up for a serious rebound.
Delivering the 2025 Governor’s Annual Monetary Policy Statement (GAMPS) from the Central Bank of Eswatini (CBE) Complex on Thursday morning, Dr. Mnisi laid out a cautiously optimistic picture of Eswatini’s economic health.
Under the theme “In pursuit of prudent monetary policy in times of uncertainty due to global trade disruptions,” the Governor painted a story of resilience, strategy and steady momentum.
He told a room packed with economists, policy makers, business leaders and sector players that Eswatini’s trade activity had surged to E6.81 billion.
Inflation, once an economic headache, is softening, with projections showing a drop to 4.88% in 2025, continuing on a downward path through 2027.
“Our stance remains supportive but data-driven,” Dr. Mnisi said, adding that the Bank’s focus is on maintaining price and financial stability in the face of global and regional volatility.
He warned, however, that geo-economic tensions still loom large and could alter the current trajectory.
One of the biggest headlines from his address was the growth forecast.
Eswatini’s economy is expected to grow by a remarkable 7.9% in 2025 – driven largely by major dam and energy infrastructure projects. This pace is expected to ease to 5.0% in 2026 and then moderate to 3.3% in 2027, as large-scale developments begin to mature.
Zooming out to the international stage, Dr. Mnisi referenced forecasts by the International Monetary Fund (IMF), which predict a 5.7% growth rate for advanced economies and 4.3% for emerging markets in 2025. “These numbers signal recovery,” he said, “but challenges remain, and we must not lose focus.”
Inflation was another hot topic. The Governor confirmed that while domestic inflation is moderating, it remains above ideal levels. The 4.4% forecast for 2025, he said, was a positive signal but not a reason to get comfortable.
On interest rates, he noted that while advanced economies are expected to stabilise, emerging markets may need to respond to shifting global conditions. “We must remain vigilant,” Dr. Mnisi cautioned. “Rate movements in major economies have ripple effects that can reach us quickly.”
He also pointed to South Africa’s projected 1.7% GDP growth in 2025 as a potential boost for Eswatini, given the two countries’ close economic ties. “A recovering South African economy could have positive spillover effects,” he observed.
Addressing financial sector risks, Dr. Mnisi didn’t shy away from the issue of high public debt. He stressed the importance of a robust macroprudential framework and reassured stakeholders that the Central Bank is keeping a close eye on vulnerabilities in the system.
But it wasn’t all about big banks and bond markets. The Governor also spoke about financial inclusion, announcing initiatives aimed at making banking more accessible, especially for displaced persons and vulnerable communities.
A new Know Your Customer (KYC) guide is in the works, designed to break down barriers and bring more people into the financial system.
“Our goal is to make financial services more inclusive,” he said, “so that no one is left behind.”
In closing, Dr. Mnisi reiterated the Bank’s commitment to proactive, measured and transparent monetary policy. “We’ll continue using all the tools at our disposal to protect our economy,” he said, “and ensure that stability remains our anchor.”
With his signature blend of technical insight and calm reassurance, the Governor offered more than a policy update, he delivered a roadmap for navigating a turbulent world.
And if the numbers hold, Eswatini may just turn this rebound into a long-term rise.
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