Eswatini’s business environment presents both challenges and opportunities. By leveraging the insights from the World Bank’s 2024 Enterprise Survey, policymakers, business leaders, and stakeholders can take strategic actions to enhance economic growth and resilience. The Enterprise Survey was conducted by AfricaScope in 2024.
Key Challenges Identified in the Survey
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Political Instability and Crime
Political instability ranks as the most pressing concern for businesses, with 23% of firms identifying it as their top obstacle. Uncertainty affects investment decisions and long-term planning, while crime and theft increase business costs. Addressing these concerns through stronger governance and security measures can create a more stable business climate.
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Access to Finance
Access to finance remains a significant barrier, particularly for small businesses, with only 28% of firms using banks for investments. Expanding financial inclusion initiatives, offering flexible credit solutions, and encouraging private investment can improve access to capital and foster business expansion.
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Competition from the Informal Sector
With nearly 70% of firms facing competition from unregistered businesses, the informal economy presents both a challenge and an opportunity. Formalizing informal enterprises through regulatory incentives, training programs, and financial support can expand the tax base and increase fair competition.
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Regulatory Burdens and Taxation
Complex regulations and tax compliance requirements consume valuable time and resources, with 37% of firms having to meet with tax officials. Simplifying business registration processes, streamlining tax administration, and promoting digital solutions can reduce bureaucratic hurdles and enhance efficiency.
Addressing Corruption to Boost Confidence
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Bribery Incidence and Business Costs
Around 8% of businesses reported encountering bribery requests, particularly in obtaining permits and licenses. Strengthening anti-corruption measures, increasing transparency, and implementing digital governance tools can significantly reduce these illicit practices.
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Building Investor Confidence
Corruption discourages both local and foreign investment. By enforcing stricter accountability and ensuring a fair competitive landscape, Eswatini can attract investment, create jobs, and accelerate economic growth.
The Path Forward: Data-Driven Policy Making
To turn these challenges into growth opportunities, decision-makers must adopt evidence-based strategies:
- Strengthening Governance and Rule of Law: A transparent, stable, and predictable political environment fosters investor confidence and business growth.
- Enhancing Access to Finance: Establishing SME funding initiatives, reducing lending barriers, and supporting digital financial solutions can unlock business potential.
- Supporting Business Formalization: Providing incentives for informal businesses to register and access services can expand the formal economy.
- Fighting Corruption through Digitalization: Implementing e-government solutions, automating regulatory processes, and increasing oversight can minimize opportunities for corruption.
By leveraging data insights from the World Bank’s Enterprise Survey, Eswatini can implement targeted reforms, create an enabling business environment, and drive sustainable economic growth.
We offers specialized geospatial services and innovative research surveys designed to empower policymakers and businesses in Africa. By providing access to comprehensive geospatial data and advanced analytics, AfricaScope enables clients to visualize and interpret complex spatial information, facilitating informed decision-making for strategic planning and resource allocation. Their expertise in conducting high-quality research surveys ensures the collection of reliable data, offering deep insights into market dynamics and socio-economic trends. Collaborating closely with clients, AfricaScope delivers tailored solutions that address specific challenges, ultimately driving sustainable development and competitive advantage across the continent.
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