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1. Financial Inclusion in Eswatini: What is Driving the Adoption of Mobile Money?

Author:
T. Magongo
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Mobile money has gained increasing importance and prominence in many sub-Saharan African countries and as a result, it is seen as a possible key to fast-tracking financial inclusion in developing countries including Eswatini. Although financial inclusion rates have improved considerably in Eswatini, the adoption of mobile money is still relatively low in the country compared to other countries in subSaharan Africa, yet a majority of the population knows about the technology. This study investigates the driving factors of mobile money adoption in Eswatini using a logit and probit analysis based on the 2014 FinScope Financial Access and Consumer Survey. Findings reveal that the likelihood of using mobile money increases with increasing levels of financial literacy, education, sending and receiving remittances using mobile money, usage of informal financial products, living in an urban area, and adjusting income during times of shock. Results suggest opportunities for financial inclusiveness such as designing and implementation of financial literacy education and money management programs, purposely targeting the underserved population (rural), as well as informal financial product usage formalization.
Topic:
Development, Economics, Finance, and Inclusion
Political Geography:
Africa and Eswatini

2. Harnessing the Demographic Dividend to Fast-Track Industrialisation: A Case in the ICT sector

Author:
Tengetile G. Hlophe and Thula Dlamini
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Eswatini ranks very low in the Global Competitiveness Index (GCI). Conceivably, this draws from the fact that Eswatini is a consumer of goods and services produced from outside the economy. In this paper, we use data from the GCI, International Telecommunications Union (ITU), and Global Innovation Index (GII) to argue that Eswatini should focus its industrial policy towards the creation of tacit productive capacities amongst SMEs in the manufacturing sector to drive large-scale industrialisation. The paper shows that by doing this, Eswatini will position herself to be a leader in the manufacture of industrial goods in the region and in the long-term be able to attract foreign investors to the country. In particular, the study analyses panel data of 5 African countries to illustrate that manufacturing in the ICT sector could contribute to increased economic growth, particularly if targeted towards technologies that are in high demand among the youth- such as smartphones, laptops, and other similar gadgets. The paper juxtaposes its main treatise with Africa’s youth bulge and shows that with every 1% increase in the youth population there will be a 4.79% increase in the adoption and usage of ICTs by the youth. This suggests that there is an opportunity for the country to anchor its industrial policy on the production of those technologies that are in high demand amongst the youth. The key message in the paper is that building tacit knowledge and skills in the manufacturing of high technology products could reduce youth unemployment, attract foreign investments, and create opportunities for industrial development and industrialisation. The paper concludes with some considerations for industrial policy in Eswatini.
Topic:
Demographics, Development, Manufacturing, Industrialization, and Industry
Political Geography:
Africa and Eswatini

3. Innovation in Eswatini: past, present, and future prospects

Author:
Tengetile G. Hlophe and Thula Dlamini
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Eswatini Economic Policy Analysis and Research Centre (ESEPARC)
Abstract:
Innovation is a catalyst for social and economic development and as such a precondition for progress. Given the need to increase economic activity and expand GDP in Eswatini, this study documents the history of innovation in Eswatini and assesses the potential for the traditional sector as a source of new growth. The study purposively sampled and interviewed 129 producers in the Manzini, Mbabane, and Ezulwini market places and complemented the surveys with an extensive analysis of the innovation and industrial development literature in Eswatini. The study finds that whereas Emaswati are innovative, innovation has been incremental and driven by global technological developments, government policy, new market opportunities, and changes in lifestyle and society. The study confirms that the traditional sector is a viable source of new growth. However, to realise its true potential there is a need to address the demand and supply side factors that inhibit production and innovation in traditional industries. Therefore combining modern technology with traditional knowledge and skills presents opportunities for value creation, product development or improvement, differentiation, and improving the competitiveness of Eswatini’s indigenous products in global markets. However, for this to happen requires investments in research and experimental development, innovative marketing strategies, innovation, and setting of progressive standards and quality assurance systems.
Topic:
Development, Global Markets, Research, and Innovation
Political Geography:
Africa and Eswatini