By Mbono Mdluli
MBABANE – Between January and March 2024, Eswatini’s capital markets experienced a 2.66% growth, according to the Financial Services Regulatory Authority (FSRA)’s 2024 First Quarter Bulletin of a Statistical Report.
This increase saw the total market assets rise from E34.77 billion in the previous quarter to E35.70 billion.
The persistent high interest rates have created both opportunities and challenges for local asset managers. While inflation remains outside target ranges globally, its impact on interest rates has proven beneficial for asset managers and investors. However, this economic environment presents difficulties for borrowers struggling to service debts, reflecting a polarized impact depending on market positioning.
In terms of asset distribution, the common monetary area continued to hold the majority, accounting for 43.27% of total assets, a slight 0.71% increase from the last quarter. However, closer scrutiny reveals a drop from the previous quarter’s 44.11%. Meanwhile, the domestic market accounted for 39.95%, marking a 1.75% rise over the previous quarter but indicating a decline from the previous share of 40.31%.
The foreign market displayed significant growth, accounting for 16.79% of total assets—up by 10.59% compared to the previous quarter. This increase, from 15.58%, underscores the potential of the foreign market for generating higher returns, driven by an influx of additional funds.
Eswatini’s capital market performance highlights a dynamic interplay of challenges and opportunities, emphasizing the critical influence of both domestic and international factors on asset growth.
