By Nkhosinathi Manyika
A report compiled by the Rand Merchant Bank (RMB) has positioned Eswatini 30 out of 31 countries in Africa on economic performance & potential, with a pillar weight of 35% and an overall score of -0.48.’
The report is titled ‘Where to Invest in Africa 2024’ and is authored by Isaah Mhlanga, Chief Economist of the RMB.
Rand Merchant Bank (RMB) is a division of FirstRand Bank Limited, a leading African corporate and investment bank and part of one of the largest financial services groups in Africa.
The RMB Where to Invest in Africa 2024 Report aims to develop a balanced, robust, and actionable view of the drivers, challenges, and opportunities that characterize each of the 31 African markets included in the analysis.
The report uses a quantitative approach to assess investment destinations in Africa. It considers a variety of economic and social factors and weights them according to their importance.
This approach allows for a more objective comparison of different countries. The methodology considers both economic performance and the operating environment.
It draws on publicly available data sets from global institutions and is constructed from 20 metrics across four measurement pillars: economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development.
The report reveals that Seychelles ranked 1st with an overall score of 0.72, followed by Mauritius at number 2, with an overall score of 0.69.
Eswatini is positioned at 30 out of 31 countries in Economic Performance & Potential, with a pillar weight of 35% and an overall score of -0.48, following the Republic of Congo ranked 29th with a pillar weight of 35% and an overall score of -0.48 same as Eswatini.
The report suggests that Eswatini’s economy is dependent on that of its far larger neighbour, South Africa, which is ranked 4th with an overall score of 0.33 and accounts for about 65% of its exports and three-quarters of its imports
In addition to a single large trading partner, Eswatini relies on a narrow line of exports measured by-products, namely sugar cane and related products.
While Eswatini is ranked 31 in Social & Human Development with a 20% pillar weight, the report states that the population is substantially rural, and unemployment is second highest in the model, better than South Africa as nearly a quarter of emaSwati are officially unemployed.
The report notes that connectedness is another major challenge Eswatini faces, as it is ranked 13 in Market Accessibility & Innovation with a 20% pillar weight.
Eswatini scores third last in the model and ranks 168 out of a total of 181 nations on the DHL Global Connectedness Report.
“The kingdom lacks navigable waterways, a coastline, and poor transport infrastructure. Also, only 35% of Swazis have mobile broadband access, which adds to the problem,” notes the RMB report.
The report also suggests that Eswatini needs major structural reforms before it can attract capital and foster healthy growth.
“The small population and the lack of natural endowments such as land and mineral deposits is no excuse as countries such as Singapore and Estonia are aspirational examples of nations that have thrived by excelling in these niches. Collaboration and great effort in enforcing policies perpetuating economic growth nothing can prevent Eswatini from doing the same,” the report concludes.