Eswatini central bank leaves benchmark rate at 6.75%

Eswatini central bank leaves benchmark rate at 6.75%

Eswatini's central bank has maintained its benchmark interest rate at 6.75% following its latest monetary policy meeting. This decision comes as the country continues to implement digital transformation initiatives aimed at boosting economic growth and job creation.

The Eswatini Economic Update (EEU) published by the World Bank Group in August 2025 highlighted digitalization as a key strategy to address the country's economic challenges. The report emphasizes the need for digital transformation to enhance productivity, create sustainable jobs, and increase domestic revenue, thereby reducing reliance on volatile revenues [1].

Despite the global economic uncertainty, Eswatini's economy is projected to grow by about 5% in 2025, driven by increased public and private investment. However, the country faces significant challenges, including a 35.4% unemployment rate and structural inefficiencies in vital sectors such as agriculture, trade, and services. The EEU recommends accelerating digital transformation to tackle these issues [1].

The Eswatini Central Bank's decision to keep the benchmark rate unchanged reflects its cautious approach to monetary policy. The bank is likely monitoring the impact of digital transformation initiatives and their potential effects on inflation and economic growth. The central bank's stance is aligned with the government's efforts to digitalize the economy and strengthen public finances [1].

To unlock Eswatini's digital potential, the EEU recommends three core policy pillars: enhancing resilience through effective macroeconomic management, stimulating job creation through private sector development, and providing better and more affordable services through efficient public spending. The report also suggests reforms to the telecom market, investment in digital public infrastructure, and fostering a competitive innovation ecosystem [1].

The central bank's decision to maintain the benchmark rate at 6.75% is a strategic move to support these digital transformation initiatives while ensuring financial stability. As Eswatini continues to implement these policies, investors and financial professionals should closely monitor the country's progress in digitalization and its potential impact on the economy.

References:
[1] https://techafricanews.com/2025/08/01/world-bank-report-highlights-digitalization-as-key-to-eswatinis-economic-future/