By Mbongeni Ndlela
MBABANE – Eswatini’s private sector continues to gain economic ground, as revealed in the latest Central Bank of Eswatini Monthly Statistical Release (May/June 2025).
The report shows that credit extended to the private sector stood at E21.6 billion in May 2025, a solid 1.5% month-on-month and 9.2% year-on-year increase, clear evidence of rising economic confidence.
According to the Bank, “The increase was driven by credit to businesses and other sectors of the domestic economy,” highlighting a notable shift in borrowing trends toward productive ventures.
Credit extended to businesses rose by 3.4% month-on-month and 18.7% year-on-year, reaching E12.0 billion. This reflects robust performance in key economic drivers: manufacturing (up 9.5%), distribution and tourism (up 7.8%), construction (up 3.7%), and agriculture and forestry (up 1.5%).
Equally encouraging is the spread of credit between business sizes.
The Bank noted, “Credit to large enterprises increased by 4.7% to E8.3 billion while credit to SMEs grew by 0.5% to E3.7 billion.” This indicates growing financial inclusion, as SMEs now account for 31% of total business credit, critical for entrepreneurship and job creation.
Credit to “other sectors of the domestic economy” also saw growth, rising 4.9% month-on-month, even though it declined 6.9% year-on-year. Sub-sectors like local government (up 7.8%), other financial corporations (up 6.8%), and parastatals (up 2.6%) led the way.
On the household front, credit dipped slightly by 1.4% month-on-month to E8.6 billion, due to a 4.3% fall in unsecured personal loans. However, the appetite for asset-backed borrowing remains strong, with motor vehicle loans increasing by 1.3% and mortgage loans by 0.2%. This suggests a shift toward long-term, wealth-building investments among consumers.
These statistics are more than just numbers; they tell a story of an economy in motion. With growing credit to productive sectors and improved access for both large firms and SMEs, Eswatini is building a strong foundation for sustainable economic growth. As the Central Bank guides financial stability, this momentum could translate into greater prosperity and development opportunities across the Kingdom.
