…. Central Bank report paints picture of resilience as private sector borrowing rises and trade surplus remains positive
BY MBONGENI NDLELA
MBABANE – Eswatini’s economy continues to demonstrate resilience and stability despite global economic uncertainties, with the latest figures from the Central Bank of Eswatini (CBE) showing strong economic growth, subdued inflation and expanding private sector activity.
According to the CBE’s recently released Recent Economic Developments Report for April and May 2026, the country’s economic activity expanded by 5.7 per cent, highlighting continued momentum in key sectors of the economy.
The report indicates that economic activity, as measured by the Quarterly Gross Domestic Product (QGDP), grew by 5.7 per cent year-on-year during the fourth quarter of 2025. Although slightly lower than the revised 5.9 per cent recorded in the previous quarter, the growth rate remains one of the strongest indicators that the economy is maintaining positive momentum.
The latest figures come as Government continues implementing programmes aimed at stimulating investment, supporting businesses and creating employment opportunities.
One of the most encouraging developments contained in the report is the continued moderation of inflation. Consumer price inflation stood at 2.0 per cent in April 2026, rising only slightly from 1.6 per cent recorded in March.
Economists generally view low and stable inflation as a positive indicator because it protects consumers from sharp increases in the cost of living while providing certainty for businesses and investors.
For ordinary emaSwati, the low inflation environment means prices of goods and services have remained relatively stable compared to many countries across the region that continue to battle elevated inflation levels.
The Central Bank also maintained key lending rates, keeping the discount rate at 6.75 per cent and the prime lending rate at 10.25 per cent during May 2026.
The stable interest rate environment is expected to provide confidence to both businesses and consumers by allowing easier planning for borrowing and investment decisions.
Another significant indicator highlighted in the report is the growth in credit extended to the private sector.
Private sector credit increased to E23.3 billion, representing growth of 0.7 per cent month-on-month and an impressive 9.5 per cent year-on-year.
The increase suggests that businesses and households continue to access financing for expansion, investment and consumption activities, which are critical drivers of economic growth.
The report also reveals that the country’s broad money supply stood at E26.7 billion in April 2026. While this represented a monthly contraction of 3.8 per cent, it was still 12.8 per cent higher than the level recorded a year earlier.
On the external sector front, Eswatini recorded a positive trade balance of E78.4 million in May 2026. Although significantly lower than the E793.8 million surplus recorded in April, the country remained in surplus territory, indicating that exports continued to exceed imports.
The report further notes that the Rand/Lilangeni exchange rate appreciated during May, closing at approximately E16.50 to the US dollar, a development that could help moderate imported inflation pressures.
However, the report also highlights areas requiring close monitoring.
Gross official reserves declined to E8.8 billion at the end of May 2026, representing a 13.7 per cent decrease month-on-month and a 6.6 per cent decline year-on-year.
Meanwhile, preliminary figures show that total public debt stood at E41.2 billion, equivalent to 39.5 per cent of Gross Domestic Product (GDP).
Despite these challenges, the overall picture emerging from the Central Bank’s latest economic assessment is one of resilience. Strong economic growth, low inflation, expanding private sector credit and continued trade surpluses suggest that Eswatini’s economy remains on a positive trajectory.
As Government pushes ahead with development programmes and the private sector continues to expand, policymakers will be hoping that these positive indicators translate into increased investment, job creation and improved living standards for emaSwati across the country.
