By Phiwa Sikhondze
Eswatini’s classification as a middle-income country has been questioned, with Business Eswatini (BE) President, Mvuselelo Fakudze, challenging the metrics used to determine such status.
Speaking during the Private Sector-United Nations Senior Level Dialogue on the New United Nations Sustainable Development Cooperation Framework (CF) for 2026-2030, Fakudze highlighted the country’s high unemployment rate and other socio-economic challenges, arguing that Eswatini should still be considered a developing nation.
The dialogue, hosted at BE headquarters, brought together business leaders, UN officials, and other key stakeholders to discuss Eswatini’s economic direction and development cooperation under the upcoming United Nations Sustainable Development Cooperation Framework (CF), the guiding document that will shape its work in the country for the period 2026-2030.
Fakudze criticized the financial and statistical criteria that has placed Eswatini in the middle-income category, arguing that such a classification does not reflect the economic realities faced by many citizens.
“We need to go to the definition of a middle-income country. We cannot lie to ourselves and put ourselves in pockets where we do not belong,” he asserted. “When you have more than 20% or 30% unemployment, how can you say that you are a middle-income country? Just because there are financial metrics that you use to define that?”
He pointed out that these classifications are often determined by institutions linked to the United Nations, such as the World Bank, and challenged the UN system to review its approach to ensure Eswatini is categorized correctly.
According to the UN, a developing country is a country with a relatively low standard of living, an undeveloped industrial base, and a moderate to low Human Development Index (HDI). This index is a comparative measure of poverty, literacy, education, life expectancy, and other factors for countries worldwide.
Meanwhile, at the end of 2023, the World Bank classified middle-income countries as economies that have a gross national income (GNI) per capita ranging from $1,136 to $13,845.
UN Resident Coordinator George Wachira, in his address, acknowledged Eswatini’s evolving status and the need for the private sector to play a greater role in driving development. He emphasized that as Eswatini transitions further into middle-income status, the role of the UN is shifting from a donor to a development cooperation partner.
“In these settings, the UN has less and less money, and the conversation shifts from ‘donor’ or ‘development funding’ to ‘development financing’ through multiple sources including direct investments, development banks, capital markets, philanthropic foundations, and domestic tax revenues,” Wachira explained.
He stressed that UN funding in Eswatini is now more catalytic, focusing on leveraging additional resources and providing technical expertise, rather than direct financial aid.
The dialogue also explored investment opportunities in Eswatini, with Wachira highlighting the UN’s “Investor Map,” developed through the United Nations Development Program (UNDP). The map identifies 14 key investment areas, including agriculture, horticulture, and sustainable energy, that align with the country’s sustainable development goals (SDGs).