Africa-Press – Eswatini. Amid a challenging economic climate, Eswatini’s services sector has emerged as a bright spot in the nation’s latest economic report.
According to the Central Statistical Office’s 2025 Q1 GDP Bulletin, while the national GDP saw a modest year-on-year contraction of -0.25%, the Tertiary Sector posted an encouraging growth of 7.2%, proving to be a powerful stabilizer in turbulent times.
The Tertiary Sector, which comprises services such as wholesale and retail, telecommunications, and financial services, now accounts for 59.1% of Eswatini’s total industries, a testament to its growing influence. Leading this momentum were wholesale and retail trade (12% growth), information and communication (9.8%), and financial and insurance activities (14.5%).
Economic analysts say this strong performance underlines Eswatini’s successful efforts to modernize and digitize its economy. “This reflects the country’s ongoing shift from traditional sectors toward a more service-based economy,” said a senior economist in Mbabane. “It shows resilience, especially when agriculture and manufacturing are facing cyclical and external pressures.”
The ICT sector’s performance aligns with national investments in digital infrastructure. The government’s recent rollout of free Wi-Fi across Tinkhundla centres and investment in fiber-optic connectivity has laid the groundwork for a more connected and agile service economy.
Additionally, the financial services sector’s impressive 14.5% growth suggests increased consumer confidence and broader financial inclusion—likely spurred by innovations in mobile banking and financial technology partnerships.
While the Primary and Secondary Sectors registered sharp contractions of -7.3% and -10.2% respectively, due to declines in agriculture and manufacturing, the Tertiary Sector has provided a cushion against a deeper recession. The overall quarter-to-quarter GDP grew by 0.5%, showing tentative signs of recovery.
Policymakers are now being encouraged to double down on service-oriented investments while crafting support for traditional industries. “The message is clear,” said the Director of Statistics, Thembinkosi Shabalala. “The future lies in building a strong, diversified economy where innovation and services lead the way.”
As Eswatini prepares for Q2, there is cautious optimism that continued growth in services could be the engine that lifts the entire economy.
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