By Mbono Mdluli
MBABANE – Credit extended to Eswatini’s private sector has grown by 10% year-on-year to reach E21.3 billion at the end of April 2025.
This is according to the April/May 2025 Statistical Release issued by the Central Bank of Eswatini (CBE). However, the credit extended the private sector fell by 0.7% month-on-month. The gross financial reserves contracted by 10.1% month-on-month and 1% year-on-year to close at E9.4 billion in May 2025.
Reserves Import Cover fell to 2.1 months in May 2025, from 2.4 months in April 2025. The broad money supply (M2) stood at E23.7 billion at the end of April 2025, reflecting a contraction of 0.2% month-on-month, but increased by 1.8% year-onyear.
Domestic liquid assets grew by 0.9% month-on-month and 4.4% year-on-year to settle at E7.5 billion at the end of April 2025. The discount rate and prime lending rate were reduced by 25 basis points to 6.75% and 10.25% at the end of May 2025.
Ombudsman Service
Meanwhile, the Central Bank of Eswatini’s Ombudsman Office, in collaboration with the Ombudsman of Financial Services and the Eswatini Competition Commission, will be visiting the following Tinkhundla centers, starting from next week.
* 16 June 2025 – Piggs Peak.
* 17 June 2025 – Hlane/Dvokodvweni.
* 18 June 2025 – Nkhaba.
* 19 June 2025 – Mhlume.
* 24 June 2025 – Sandleni.
* 26 June 2025 – Mtsambama.
* 15 July 2025 – Ntontozi.
* 17 July 2025 – Nhlambeni.
The Ombudsman investigates and resolve disputes consumers have with their banks through a fair and effective process – free of charge!
Members of the public are advised that if you have an unresolved complaint, they can email CBE directly at ombudsman@centralbank.org.sz
Small Scale Enterprise Loan Guarantee Scheme
Between April 2024 and March 2025, the Small Scale Enterprise Loan Guarantee Scheme (SSELGS) issued a total of 146 new guarantees valued at E35 million covering loans amounting to E40.2 million from various participating financial institutions, contributing to a 15.9% increase over the year.
SSELGS is a formal assurance or security given to financing institutions and is paid out on fulfilment of certain conditions.
What SSELGS guarantees cover
* 95% for start-ups
* 85% for already operational business loans
Youth business Guarantees
* 98% for start-ups
* 95% for already operational business loans
For more information on how businesses benefit from the guarantee scheme, members of the public are encouraged to visit their respective commercial bank, a Non-Bank Financial Institutions, the Central Bank’s Development Finance Division or the CBE’s website https://www.centralbank.org.sz/development-finance
Dye-stained Bank Notes
The CBE also recently took the initiative to remind the public that dye-stained banknotes are presumed to be proceeds of crime.
How to identify dye-stained banknotes
* They look, feel or smell different than genuine banknotes.
* They have a bluish, purple or green stain around the edges of the banknotes or across one side as though the banknotes have been dipped in ink.
The nation is encouraged not to accept dye-stained banknotes. If they happen to find one, they should turn it in to the nearest police station, commercial bank, or the Central Bank. By so doing, they will be playing their part in fighting crime.
CBE Forecasts
Meanwhile, the Bank’s forecasts for the short-term have been markedly revised downwards on account of sustained moderation in food, and housing and utilities components of the consumer basket, which account for a combined weight of 47.8 per cent. As a result, the lower inflation outturn for the month of April 2025, which was recorded at 3.3 per cent, shifted the Bank’s forecasts significantly lower.
Externally, the slowdown in oil prices is expected to continue in the short-to-medium term mainly driven by an anticipated increase in supply and the negative impact of US tariffs on global growth, amid a muted demand outlook.j
(Courtesy Pic)
