BY MBONGENI NDLELA
MBABANE – Central Bank Governor Dr. Phil Mnisi has praised Eswatini’s banking sector for significantly increasing lending to businesses and households, saying the growth in private sector credit is a strong indication that banks are actively supporting economic expansion, investment and job creation.
Speaking during the Governor’s Annual Media Engagement Session at Sibebe Resort, Dr. Mnisi revealed that private sector credit had reached E23.2 billion by the end of March 2026, representing continued growth in financial sector activity and confidence within the economy.
“Total private sector credit increased by 0.9 percent on a month-on-month basis to reach E23.2 billion at the end of March 2026,” said the Governor.
He described the achievement as a significant milestone, particularly when compared to the position of the banking sector only a few years ago.
“Around 2023, we were sitting and actually stuck at credit to the private sector of about E15 billion. About two or three years later, we are now tripping over the E20 billion mark, which is very good,” he said.
Dr. Mnisi attributed the growth to commercial banks increasingly performing their core function of financial intermediation by taking deposits and lending them back into the economy.
“The banks are intermediating. They are taking the deposits and they are putting them out and taking risk. Instead of making money from non-funded income, they are taking risk, intermediating and making money from interest incomes,” he said.
According to the Governor, increased lending is critical because it helps stimulate economic growth through investment and business expansion.
“Hopefully that goes to stimulate growth and that lending is not going to consumption but going to capital formation and investment,” he said.
The Governor reported that business sector credit was among the strongest performers, growing by 2.6 percent to reach E12.7 billion.
“Business sector credit recorded a strong performance, increasing by 2.6 percent to E12.7 billion, indicating continued demand for financing by firms and ongoing economic activity,” he said.
The positive credit growth comes amid continued stability in Eswatini’s banking sector. Dr. Mnisi said local banks remain well-capitalised and resilient despite economic uncertainties affecting many parts of the world.
“The banking sector remains stable and adequately capitalised,” he said.
Another encouraging development highlighted by the Governor was the improvement in asset quality within the sector.
“What is encouraging is the non-performing loan ratio, which has improved slightly. This suggests that while asset quality challenges remain, the overall risk profile of the banking sector continues to be manageable,” he said.
Dr. Mnisi also provided an update on the Central Bank’s intervention at Eswatini Bank, stressing that the regulator’s objective is to strengthen the institution and ensure it continues fulfilling its developmental mandate.
He explained that the Central Bank has intensified oversight and support to enable the implementation of a structured transformation programme.
“This programme is designed to strengthen Eswatini Bank’s balance sheet, enhance corporate governance, reinforce risk management frameworks and improve overall operational resilience with the ultimate objective of restoring financial stability and positioning the bank for sustainable long-term growth,” he said.
The Governor revealed that an experienced consultant supported by a five-member technical team is already working closely with the bank to implement key turnaround measures.
“The consultant is already on-site and commenced this assignment. We are working closely with him to implement key turnaround measures, strengthen governance and operational effectiveness, and restore Eswatini Bank to financial sustainability and long-term viability,” he said.
Dr. Mnisi emphasized that the intervention should not be viewed as a sign of weakness but rather as a proactive measure aimed at preserving an institution that plays a crucial role in economic development.
“We want to assure the public that Eswatini Bank continues to fulfil its mandate as a development-orientated financial institution that supports job creation, economic development and employment,” he said.
He expressed confidence that continued credit growth, prudent banking practices and stronger institutions would contribute positively to Eswatini’s development agenda.
As the economy continues to recover and expand, the Governor said the financial sector remains committed to supporting productive investments that create employment opportunities, strengthen businesses and improve livelihoods across the country
