The first world leader to die of coronavirus had battled the disease for four weeks, according to reports.
Eswatini Prime Minister, Ambrose Dlamini, tested positive for Covid-19 a month ago.
Mr Dlamini, 52, had been hospitalised in neighbouring South Africa, the monarchy's government confirmed late on Sunday.
"Their Majesties have commanded that I inform the Nation of the sad and untimely passing away of His Excellency the Prime Minister Ambrose Mandvulo Dlamini," Deputy Prime Minister Themba Masuku said in a statement.
"His Excellency passed on this afternoon while under medical care in a hospital in South Africa."
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Mr Dlamini was moved to South Africa on Dec.1, to "guide and fast track his recovery," from coronavirus. At that time, Masuku said Dlamini was stable and responding well to treatment.
He was appointed prime minister in November 2018, following his position as the chief executive officer of MTN Eswatini, or commonly known as Swaziland.
He had worked in the banking industry for more than 18 years, including being managing director of Eswatini Nedbank Limited, reports Reuters news agency.
The southern African nation of around 1.2 million people has so far recorded 6,768 positive cases of the highly infectious respiratory disease, with 127 confirmed deaths, according to the health ministry.
Earlier this year, the Burundian president, Pierre Nkurunziza, was reported to potentially be the first world leader to die of the virus. He passed away from a heart attack, the government announced in the summer.
However, opposition sources and journalists at the time claimed the president had been undergoing treatment for coronavirus at hospital after he fell ill.
But the claims have not been confirmed by the government, who stated the leader died following a cardiac arrest on June 8.
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