Eswatini was one of the last countries in the world to abolish a monopoly of its telecommunications market. Until 2011, the state-owned Eswatini Post and Telecommunications Corporation (EPTC) acted as the industry regulator and had a stake in the country’s sole mobile network South African MTN. An independent regulatory authority was established in late 2013 and has since embarked on significant changes to the telecommunications sector. MTN Eswatini in early 2016 was awarded spectrum in the 1800MHz band to provide LTE services. In 2017, Eswatini Mobile received a second mobile license and launched operations in July 2018. The arrival of Eswatini Mobile has dramatically lowered prices and improved mobile and data offerings. In 2023, MTN was licensed to trial 5G technology, and six months later Eswatini awarded an ISP license to Starlink for low orbit satellite technology. Starlink managed to attain 1.1 percent market share of the subscriptions in the period of 2023/24.
The internet sector has twenty licensed Internet Service Providers (ISPs), but prices have remained relatively high and market penetration low outside the urban corridor of Mbabane-Manzini. EPTC continues to have partial exclusivity over national broadband infrastructure, which inhibits performance and cost reduction. Starlink’s entrance revitalized competition in the fixed broadband market as other players revised their offerings to try and match those of Starlink’s. The average minimum speeds offered by the ISPs moved from 1Mbps to 5Mbps to catch up with the vibrant competition triggered by Starlink.
One key opportunity lies in ICT infrastructure development. U.S. investors could explore partnerships to expand broadband infrastructure, introduce affordable internet solutions, and enhance secure internet servers. These investments would not only improve connectivity but also support the growth of e-commerce platforms and digital services in the country.
Another area of opportunity is logistics and last-mile delivery solutions. The postal sector in Eswatini faces challenges such as limited accessibility and the absence of a formal addressing system, which hampers efficient delivery of e-commerce goods. U.S. investors could introduce advanced logistics technologies, geocoding systems, and innovative delivery models to improve last-mile delivery. This would support the growth of e-commerce businesses and enable them to reach underserved rural areas. Furthermore, Eswatini’s customs modernization efforts, including the adoption of the ASYCUDA system, provide a favorable environment for cross-border trade facilitation, which could attract investment in international shipping and trade logistics.
Lastly, digital payment solutions and financial services offer significant potential. While mobile money is popular in Eswatini, the adoption of debit and credit cards and payment gateways remains limited. U.S. financial technology companies could invest in expanding digital payment systems, introducing interoperable platforms, and enhancing financial inclusion for small and medium-sized enterprises and underserved populations.
Leading Sub-sectors
- Mobile phone provision
- Next Generation Network Solutions
- Financial technology
- Fiber-optic cables
- Main distribution frames
- Equipment manufacturing and maintenance
- Wireless broadband services