One of the major challenges that Swaziland faces is pervasive poverty, with an estimated 69 per cent of the population living below the national poverty line (SHIES 2001)[1]. Shiselweni recorded 76 percent of households living below the poverty line, while Lubombo recorded 73 percent. The other two regions recorded 70 percent (Hhohho) and 61 percent (Manzini).[2] Of the total population 79 per cent reside in rural areas, relying predominantly on subsistence farming and/or livestock herding. Of this population 75 percent live in poverty, compared to 49 percent of the urban population.[3]
Other dimensions of human well being are not bright forSwaziland. Income distribution remains highly skewed, with 56 percent of wealth held by the richest 20 percent of the population, while the poorest 20 percent own less than 4.3 percent.[4] The average person in the richest quintile commands more than 13 times the consumption expenditure of the average person in the poorest quintile. Swaziland has recorded an overall Gini Coefficient of 0.51, (0.50 and 0.45 for urban and rural areas respectively) reflecting a high level of inequality by international standards.[5] Inadequate food production contributes to chronic food insecurity and high levels of dependency on food aid. Reports from vulnerability assessments show that 20-25 percent of Swazi households are food insecure. Inadequate provision and unequal access to land and other factors and opportunities for better agricultural production, are aggravated by recurring drought, rising food prices and reduced arable land has contributed to food insecurity. Shiselweni and the Lubombo  are the most vulnerable regions where hunger and poverty are at peak levels. Children are particularly negatively affected, with 29 percent of under-fives showing signs of stunting (an indication of malnutrition over an extended period of time). Unemployment initially of “school leavers” but now including graduates from tertiary institutions is high and rising.
Overall, these outcomes are reflected in the low standing in the Human Poverty Index (HPI -1), an indication of standard of living in the country, in which
Swaziland ranks the 73rd among 177 countries. These poverty levels are out of tune the potential given by Swaziland’s resource base and are inconsistent with its middle income status, being quite akin to low income/poor situations.
Amongst the primary causes of this situation are slow economic growth and significant inequalities in the distribution of wealth and income along rural-urban, gender, age, inter-regional and inter-personal dimensions. These in turn are rooted on inadequate and unequal access to assets/resources and opportunities, along the same lines, and which is the duty of the government to address through appropriate [policies and their effective implementation.

Current policies and strategies

Since independence four decades ago the Government of Swaziland has been wrestling with the issue of how to overcome extreme poverty. At the national level, the National Development Strategy (NDS), which was adopted in 1999, has a focus on improving the quality of life in the country, including through poverty eradication programmes. In recent years, the urge for urgent measures to combat absolute poverty has been assisted by the country’s commitment to the Millennium Development Goals  [6] (MDGs), which include as Goal 1 the ‘Eradication of Extreme Poverty and Hunger’, between 1990-2015. As envisaged in the PRSAP, the country’s target under the MDGs is to reduce poverty by more than 50% by 2015 and then ultimately eradicate it by 2022, while improving the living standards for the entire population, free from deprivation, malnutrition, vulnerability to ill health and preventable diseases, illiteracy, isolation, poor shelter, and wit less vulnerability to exogenous domestic and external economic and other shocks. The country also wasn’t to half income inequality by 2015.
The PRSAP and its domestication of the MDGs have assisted in advocacy for pro-poor budgets including their increased attention to social sectors. Regionally, the New Partnership for Africa’s Development (NEPAD), to which
Swaziland is a party, also commits countries to combat poverty, including through improved governance and increased regional economic cooperation and integration.
The Poverty Reduction Strategy and Action Programme (PRSAP) whose theme is “Towards Shared Growth and Empowerment” is the principal country’s development framework that serves to inform national and sector policies, strategies and programmes. It provides the core development challenges facing the country and the strategies and policy actions for tackling them. A Government Programme of Action 2009-2013, is also in place, which aims to focus the government on the implementation of actions to boost on economic growth, poverty reduction, job creation, hunger and food security, access to health care and the fight against HIV&AIDS, provision of safe water and sanitation, strengthening national security, curbing corruption and disaster risk reduction, especially for vulnerable groups. Both the PRSAP and the Government Action Programme is essentially operationalized through the annual national budget. Plans are underway to strengthening the budgetary process by establishing Sector Working Groups and adopting  SWPs in key sectors.

Outstanding development challenges

Structural Inequalities

Poverty in Swaziland has affects the rural and urban areas in a significantly different manner and extent. While urban areas enjoy economic progress especially along the Mbabane-Manzini corridor, the rural and peri-urban economy remains stagnant, resulting in people in these areas being more affected by poverty. This has contributed to, while also exacerbate by  rural-urban youth migration. Moreover, while commercial farming flourishes on privately-owned title deed lands (TDL), producing sugar, wood pulp and canned fruits for export, on the other extreme, smallholder producers on Swaziland National Land (SNL), are impoverished and food-insecure, in part due to lack of access to productive assets such as good land, water, credit and agricultural extension.
Weak Social Protection Systems
The PRSAP noted that social deprivation (e.g. risk, vulnerability, lack of autonomy and powerlessness, lack of self respect), were very much prevalent in Swaziland, and therefore, focused on improving social protection for marginalised and vulnerable groups including women, youths and  people living with disabilities. Social protection grants help mitigate the wider effects of HIV&AIDS and the ensuing economic and social disempowerment. A  number of grants are available to assist those in need (see Table 1). However  both government social welfare services and traditional community support systems are struggling under the burden of poverty, food insecurity and the HIV and AIDS pandemic.,  Administrative weaknesses also mean that  the  mechanisms for targeting and registering those eligible for such assistance have been daunting, and comprehensive access has not yet been achieved.

Inequalities and Discrimination of Poor and Disadvantaged Groups

Lack of access to, and control of, productive assets such as land and water for the sustainable livelihoods of the poor, lack of knowledge and skills and lack of power and capacity to participate in policy-making and decisions affecting their destiny, all seat as primary causes disempowerment that explains low human development in Swaziland. Women are particularly affected in this regard; 63 percent of female headed households are poor and lack productive assets compared to 52 percent of male headed households.[7] Issues of property rights are central; for example, traditionally, land is essentially in the hands of men. Women and poor unmarried men have difficulties accessing it, if at all. Furthermore, they lack collateral to access credit, and the banks are not very amenable to lending to women, even if they had the necessary credentials, without their husband’s consent. The challenge here is how best to empower the poor and vulnerable groups with the necessary knowledge, skills and structures to make a difference on their poverty status.


Limited Trade for Poverty Reduction

Swaziland is very much engaged in regional trade reform initiatives through its membership of Southern African Customs Union (SACU), Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA). However, little effort is being made to widen markets through the promotion of internal trade, and to improve the quality of products produced in the informal sector for export (e.g. crafts). There are possibilities for Swaziland to tap into  aid for trade ”  initiative , in order to access  grants and concessional loans  to promote its trade agenda. This includes pushing for fair trade under the WTO multilateral trade negotiations, the EU/ACP Economic Partnership Agreements (EPAs), as well as taking advantage of such trade promotion schemes like the USA’s Africa Growth Opportunities Act(AGOA). . Cultural tourism is also an area that offers promising prospects given Swaziland’s acknowledged leadership in preserving its cultural heritage.

Weak Capacity for Labour and Employment Creation

Employment opportunities in Swaziland are not increasing, not least because of high number of new entrants into the labour market (youths under 30 years constitute about 70 percent of the population). The country is also challenged to improve working conditions to ensure ‘decent work,’ and to effectively address HIV and AIDS issues at the workplace.  One drawback is the poor relations between Government and the Unions. A sound tripartite alliance of Government, Employers and Labor, would improve industrial relations and steer improved employment-generating opportunities.  Swaziland is also suffering from a huge brain drain of doctors, nurses, engineers and other professionals for “greener pastures”, such as South Africa and the United Kingdom. Ideally this should have a positive impact through   remittances and increased exposure to new skills and experience. The latter is only helpful if the (economic) migrants returned, but this has not been happening to significant levels.

Global Economic and Financial Crisis

The  global economic crisis will reduce employment opportunities as a result of limited demand for exports, of goods (e.g. textiles) and services (e.g. tourism), limited South African investments in Swaziland since most Swazi firms are subsidiaries of RSA companies,  limited access to credit coupled with the high costs and  NGO transfers) given the need for cash trapped governments and other development partners to first and foremost meet the needs of their own people. Revenues from SACU are expected to decline by 9 percent in 2008/09 as a result of the global/regional trade liberalization. This will in turn reduce Swaziland’s share of SACU revenues by 6.4 per cent and 12.5 per cent in 2009/10 and 2010/11 respectively. Partly because of projected decline in SACU revenues, the Kingdom’s budget deficit is projected at 8 per cent of GDP instead of the 1 per cent estimated last year. Additionally, remittances might decline with the global economic recession, even though this may be mitigated by the fact that a substantial number of Swazi migrants in South Africa are professionals that might offset the impact on the employment of miners.   These processes are likely to have adverse effects on the poverty even thought the extent is still to be ascertained.

[1] The World Bank estimated that in 2005, 48 percent of the population lived on less than US$ 1 per day while 78 percent lived below US$2 per day.

[2] Swaziland Household Income and Expenditure Survey, 2001

[3] World Bank, Interim Strategy Note: A Framework for Scaling Up Support for the Kingdom of Swaziland, 04/2008 – 04/2010

[4] Swaziland Household Income and Expenditure Survey, 2001

[5] Swaziland Household Income and Expenditure Survey, 2001 (The Gini coefficient measures the degree of inequality in income (or consumption) within a population.- with extreme values of 0(zero) and 1(one) denoting  perfect  equality and inequality respectively

[6] The eight  MDGs are:  : Eradicate extreme poverty and hunger; Achieve universal primary education; Promote gender equality and empower women; Reduce child mortality; Improve maternal health; Combat HIV and  AIDS, malaria and other diseases; Ensure environmental sustainability; Build a global partnership for development

[7] Swaziland Poverty Reduction Strategy and Action Plan, 2005