Phiwa Sikhondze
Despite a general contraction in the primary and secondary sectors, Eswatini’s mining and quarrying subsector experienced a remarkable surge, with coal production increasing by over 200%.
This is according to the Central Bank of Eswatini’s Quarterly Review for March 2024. According to the quarterly review, this growth has provided a positive note in the country’s economic developments, with the mining and quarrying subsector emerging as a significant contributor to the country’s economic growth.
The fourth quarter of 2023 saw the subsector expand by an impressive 168%, a stark contrast to the overall decline in the primary and secondary sectors. This surge was primarily driven by a more than 200% increase in coal production, which has become a cornerstone of Eswatini’s economic development.
The forestry and animal production subsectors faced challenges, with the former declining for the eighth consecutive quarter and the latter experiencing a slowdown in livestock slaughters. However, the mining and quarrying subsector’s robust performance has provided a much-needed boost to the economy.
The secondary sector, which includes manufacturing and electricity supply, contracted by 1.5%, with notable declines in food processing, textiles, and wood products. The electricity supply subsector, after enjoying four quarters of double-digit growth, saw a significant slowdown.
On the brighter side, the construction subsector rebounded with a 6.9% growth, thanks to the upscaling of public infrastructural projects like the Mpakeni Dam. This recovery is a positive sign for the country’s infrastructure development and future economic prospects.
The tertiary sector continued to thrive, maintaining double-digit growth for the third consecutive quarter and contributing significantly to the GDP. The financial services subsector, in particular, saw a remarkable growth of 34.8%, with insurance, pension, and asset management leading the charge. The information & communication subsector also maintained strong growth, benefiting from the increasing demand for digital platforms and data services.
Tourism has also shown promising signs, with a 22.2% year-on-year growth supported by a rise in tourist arrivals and occupancy rates. This growth trajectory is expected to continue, bolstered by the efforts of the Eswatini Tourism Authority.
Overall, the mining and quarrying subsector’s exceptional performance has been a silver lining for Eswatini’s economy, indicating a positive economic outlook for the country.