Develop a Global Partnership for Development - Goal 8 Swaziland’s trade and financial system has been faced with serious challenges in attracting Foreign Direct Investment (FDI) due to the competition for the FDI with economically superior neighbours. FDI inflows have declined from E665 million in 2000 to E56 million in 2006. The country’s balance of payment (BoP) trends reflects that export performance have been poor compared to imports.
However, the performance of the financial industry has been progressive and sound as measured by the superior average risk weighted capital adequacy ratio when compared with the statutory minimum adequacy ratio of 8 percent.
Swaziland external debt has also been kept within the internationally recommended standards and is therefore sustainable. The country has also made meaningful inroads in both telephonic and mobile penetration rate as reflected by the increase in the number of subscribers for the two national providers for these services.
Swaziland’s membership to big trading organisations have paid dividends in the past but with the changing trading regimes, challenges of penetrating those markets and maintaining a secured share has poised serious challenges. The EU market for sugar is under threat with the forthcoming price reduction and removal of preferences.
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