The History of the Lilangeni: Eswatini's Currency and Its Roots

Eswatini, formally known as the Kingdom of Eswatini, is a landlocked country in Southern Africa, bordered by South Africa on all sides except the northeast, where it shares a border with Mozambique. Eswatini is one of the smallest countries in Africa. Despite its size, its climate and topography are diverse, ranging from a cool and mountainous highveld to a hot and dry lowveld.

The population is composed primarily of ethnic Swazis, and the prevalent language is Swazi (siSwati in native form). Eswatini is a developing country that is classified as having a lower-middle income economy. As a member of the Southern African Customs Union and the Common Market for Eastern and Southern Africa, its main local trading partner is South Africa. To ensure economic stability, Eswatini's currency, the lilangeni, is pegged to the South African rand.

Let's delve into the history of this currency and its connection to the kingdom's past.

Early History and the Ngwane Kingdom

Artifacts have been found indicating human activity in Eswatini dating back to the early Stone Age, around 200,000 years ago. The earliest known inhabitants of the region were Khoisan hunter-gatherers, who were largely replaced by the Nguni during the great Bantu migrations. Evidence of agriculture and iron use dates from about the 4th century.

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The Swazi settlers, then known as the Ngwane (or bakaNgwane) before entering Swaziland, had been settled on the banks of the Pongola River. Before that, they were settled in the area of the Tembe River near present-day Maputo, Mozambique. Continuing conflict with the Ndwandwe people pushed them further north, with Ngwane III establishing his capital at Shiselweni at the foot of the Mhlosheni hills. Under Sobhuza I, the Ngwane people established their capital at Zombodze in the heartland of present-day Eswatini.

The names "Swaziland" and "Eswatini" both derive from a later king named Mswati II. KaNgwane, named for Ngwane III, is an alternative name for Eswatini, the surname of whose royal house remains Nkhosi Dlamini. Mswati II was the greatest of the fighting kings of Swaziland, and he greatly extended the area of the country to twice its current size. The Emakhandzambili clans were initially incorporated into the kingdom with wide autonomy, often including grants of special ritual and political status.

British and Dutch Influence

The autonomy of the Swazi nation was influenced by British and Dutch rule of southern Africa in the 19th and early 20th centuries. In 1881, the British government signed a convention recognising Swazi independence, despite the Scramble for Africa that was taking place at the time. King Mbandzeni created a complex pattern of land ownership by granting many concessions to Europeans.

During the concessions some of the King's senior chiefs like Chief Ntengu Mbokane got permission to relocate to farms towards the Lubombo region, in the modern-day city of Nsoko. Others like Mshiza Maseko relocated to farms towards the Komati River in the place called eLuvalweni. The concessions included grants and leases for agriculture and grazing. Swaziland was given a triumviral administration in 1890, representing the British, the Dutch republics, and the Swazi people.

In 1894, a convention placed Swaziland under the South African Republic as a protectorate. King Ngwane V died in December 1899, during incwala, after the outbreak of the Second Boer War. His successor, Sobhuza II, was four months old. The Swaziland Administration Proclamation of 1904 established a commission with the task of examining all the concessions and defining their boundaries.

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This work was finished by 1907, and the Swaziland Concessions Partition Proclamation provided for a concessions partition commissioner to be appointed to set aside areas for the sole use and occupation of the Swazis. The commissioner had the power to expropriate up to one third of each concession without compensation, but payment would need to be made if more than a third was taken. In the event, in 1910 he completed his work and set aside 1,639,687 acres, some 38% of Swaziland's area, for the Swazi.

Much of the early administration of the territory (for example, postal services) was carried out from South Africa until 1906, when the Transvaal Colony was granted self-government. In the period between 1923 and 1963, Sobhuza II established the Swazi Commercial Amadoda which was to grant licences to small businesses on the Swazi reserves and also established the Swazi National School to counter the dominance of the missions in education.

The constitution for independent Swaziland was promulgated by Britain in November 1963 under the terms of which a Legislative Council and an Executive Council were established. Despite such opposition, elections took place, and the first Legislative Council was constituted on 9 September 1964. By 1964, the area of the country reserved for occupation by the Swazi had increased to 56%. Changes to the original constitution proposed by the Legislative Council were accepted by Britain and a new constitution providing for a House of Assembly and Senate was drawn up.

Independence and Constitutional Developments

Following the elections of 1972, the constitution of Swaziland was suspended by King Sobhuza II who thereafter ruled the country by decree until his death in 1982. An attempt to transfer neighbouring parts of South Africa, more precisely parts of the Zulu homeland of KwaZulu and parts of the Swazi homeland of KaNgwane, to Swaziland in 1982 was never realised. This would have given land-locked Swaziland access to the sea.

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The deal was negotiated by the governments of South Africa and Swaziland, but was met by popular opposition in the territory meant to be transferred. The territory had been claimed by Sobhuza II as part of the Swazi monarchs' traditional realm, and the South African government hoped to use the area as a buffer zone against guerrilla infiltration from Mozambique. The 1990s saw a rise in student and labour protests calling on the king to introduce reforms.

Thus, progress towards constitutional reforms began, culminating with the introduction of the current Swazi constitution in 2005. This happened despite objections by political activists. The current constitution does not clearly deal with the status of political parties. The first election under the constitution took place in 2008. Members of Parliament (MPs) were elected from 55 constituencies (also known as tinkhundla). These MPs served five-year terms which ended in 2013.

Economic Challenges and the Renaming of the Kingdom

In 2011, Swaziland suffered an economic crisis which was caused by reduced Southern African Customs Union (SACU) receipts. This caused the government to request a loan from neighbouring South Africa. During this period, there was increased pressure on the Swazi government to carry out more reforms. Public protests by civic organisations and trade unions became more common. Starting in 2012, improvements in SACU receipts eased the fiscal pressure on the Swazi government. A new parliament, the second since the promulgation of the constitution, was elected in 2013.

On 19 April 2018, Mswati III announced that the Kingdom of Swaziland had been renamed as the Kingdom of Eswatini, reflecting the extant Swazi name for the state eSwatini, to mark the 50th anniversary of Swazi independence. Eswatini workers began anti-government protests against low salaries in September 2018. They went on a three-day strike organised by the Trade Union Congress of Eswatini that resulted in widespread disruption. In June 2021, pro-democracy protests broke out across the country, sparking riots, looting, and street skirmishes with police and soldiers.

This civil unrest began as a result of years of anger towards the lack of meaningful reforms that would nudge Eswatini in the direction of democracy, as well as the government's reported banning of the submission of petitions. Numerous buildings said to be connected to King Mswati III were torched by protesters, and police reportedly assaulted and arrested political opponents. The New York Times called the turmoil in the landlocked nation "the most explosive civil unrest in its 53 years of independence". At least 20 people were killed by state security forces and dozens more injured and detained.

A History Of The Eswatini People

The Lilangeni: Eswatini's Currency

The lilangeni (plural: emalangeni, ISO 4217 code: SZL) is the currency of Eswatini and is subdivided into 100 cents. It is issued by the Central Bank of Eswatini (in swazi Umntsholi Wemaswati) and is authorised by the king and his family. The South African rand is also accepted in Eswatini.

Coinage

In 1974, coins for 1, 2, 5, 10, 20 and 50 cents and 1 lilangeni were introduced, with the 1 and 2 cents struck in bronze and the others struck in cupro-nickel. The 2 cents was last struck in 1982, whilst, in 1986, round, copper-plated steel 1 cent and nickel-brass 1 lilangeni coins were introduced. These were followed, in 1992, by nickel-plated-steel 5 and 10 cents and nickel-brass-plated-steel 1 lilangeni coins.

From 2009 to 2011 new coins were introduced in copper-plated steel (5c and 10c), nickel-plated steel (20c, and a 50c piece which was never released into circulation) and brass-plated steel (L1). In February 2016, a new series of coins dated 2015 was introduced and all previous coins were recalled and demonetised. The new coins have similar designs to the previous coins, but with slightly different sizes and weights. The 10c-50c are in nickel-plated steel and the L1-E5 are in aluminium-bronze.

Banknotes

On 6 September 1974, the Monetary Authority of Swaziland introduced notes in denominations of 1 lilangeni, 2, 5 and 10 emalangeni, with 20 emalangeni notes following in 1978. In 1981, the Central Bank of Swaziland took over paper money production, first issuing notes commemorating the Diamond Jubilee of King Sobhuza II. Between 1982 and 1985, it introduced non-commemorative notes for E2, E5, E10, and E20. The 50 emalangeni notes were introduced in 1990. The E2 and E5 notes were replaced by coins in 1995, whilst 100 and 200 emalangeni notes were introduced in 1996 and 1998, respectively, with the E200 notes commemorating the 30th anniversary of independence.

Here's a table summarizing the key milestones in the history of the Lilangeni:

Year Event
1974 Introduction of coins (1, 2, 5, 10, 20, 50 cents, and 1 lilangeni)
1974 Introduction of banknotes (1, 2, 5, and 10 emalangeni)
1978 Introduction of 20 emalangeni notes
1981 Central Bank of Swaziland takes over paper money production
1990 Introduction of 50 emalangeni notes
1996 & 1998 Introduction of 100 and 200 emalangeni notes
2016 Introduction of a new series of coins dated 2015, previous coins demonetized

Economic and Social Challenges

Eswatini faces several economic and social challenges. It is a small, predominantly rural, landlocked country surrounded by South Africa and Mozambique, suffers from severe poverty and the world’s highest HIV/AIDS prevalence rate. A weak and deteriorating economy, high unemployment, rapid population growth, and an uneven distribution of resources all combine to worsen already persistent poverty and food insecurity, especially in rural areas.

Erratic weather (frequent droughts and intermittent heavy rains and flooding), overuse of small plots, the overgrazing of cattle, and outdated agricultural practices reduce crop yields and further degrade the environment, exacerbating Eswatini's poverty and subsistence problems. Eswatini's extremely high HIV/AIDS prevalence rate – more than 28% of adults have the disease – compounds these issues.

Swazis, mainly men from the country’s rural south, have been migrating to South Africa to work in coal, and later gold, mines since the late 19th century. Although the number of miners abroad has never been high in absolute terms because of Eswatini's small population, the outflow has had important social and economic repercussions. The peak of mining employment in South Africa occurred during the 1980s. Cross-border movement has accelerated since the 1990s, as increasing unemployment has pushed more Swazis to look for work in South Africa (creating a “brain drain” in the health and educational sectors); southern Swazi men have continued to pursue mining, although the industry has downsized. Women now make up an increasing share of migrants and dominate cross-border trading in handicrafts, using the proceeds to purchase goods back in Swaziland.

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