Private sector credit hits record E23.2bn, says central bank

Mbabane – The Central Bank of Eswatini’s latest monthly statistical release shows the Kingdom’s private sector credit reached a record high of E23.2 billion in March 2026, growing 0.9 per cent from the previous month and 8.1 per cent compared to the same period last year.

The growth was driven entirely by increased lending to the business sector, which climbed 2.6 per cent month-on-month and 10.1 per cent year-on-year to a new peak of E12.7 billion. Manufacturing led the charge with a 6.5 per cent increase, followed by construction and distribution and tourism, both rising 3.1 per cent. Agriculture and forestry grew 1.3 per cent, while real estate edged up 0.5 per cent. These gains were partly offset by declines in mining and quarrying, which fell 5.0 per cent, community, social and personal services, down 2.9 per cent, and transport and communications, which dipped 0.4 per cent.

Figure 1: Credit extended to the private sector; March 2025 to March 2026

Source: Central Bank of Eswatini and Other Depository Corporations

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Large enterprises, accounting for 66.3 per cent of total business credit, saw borrowing grow 1.9 per cent to E8.4 billion. Small and medium enterprises took up the remaining 33.7 per cent, with credit rising 4.2 per cent to E4.3 billion.

Household credit, however, told a slightly different story. It dipped marginally by 0.2 per cent on a month-on-month basis but was still 7.1 per cent higher than a year ago, closing at E9.5 billion. Housing loans fell 2.0 per cent to E4.2 billion, while motor vehicle loans grew 1.0 per cent to E1.5 billion and other personal loans rose 1.3 per cent to E3.8 billion.

Credit to other domestic sectors contracted 9.2 per cent month-on-month and 5.2 per cent year-on-year to E1.0 billion, pulled down by reduced lending to public enterprises, which dropped 20.2 per cent to E0.4 billion, and local government, which fell 2.1 per cent to E0.1 billion.

The government’s financial position with the banking sector improved during the review period. Net claims on government fell 6.6 per cent month-on-month and 15.9 per cent year-on-year to E1.9 billion. Government deposits grew 5.3 per cent to E6.9 billion, boosted by an inflow from an external project loan, while claims against government rose at a slower pace of 2.5 per cent to E8.8 billion.

Broad money supply, known as M2, expanded 3.0 per cent month-on-month and 17.1 per cent year-on-year to reach E27.8 billion at the end of March 2026. Quasi money supply rose 6.4 per cent to E18.1 billion, supported by an 8.2 per cent jump in time deposits to E15.9 billion, though savings deposits slipped 4.9 per cent to E2.2 billion.

Narrow money supply fell 2.7 per cent month-on-month to E9.7 billion, with emalangeni in circulation dropping 3.7 per cent to E0.9 billion and transferable deposits declining 2.6 per cent to E8.7 billion.

Banking sector liquidity strengthened considerably. Domestic liquid assets grew 14.2 per cent month-on-month and 41.8 per cent year-on-year to E10.5 billion, driven by higher cash holdings and increased balances with the Central Bank. The liquidity ratio moved up from 34.5 per cent in February 2026 to 38.4 per cent in March 2026.

The country’s gross official reserves stood at E10.2 billion at the end of April 2026, up 5.3 per cent from March, though still 2.7 per cent below the level recorded in April 2025. The monthly improvement was driven by the quarterly inflow of Southern African Customs Union revenue received during the first week of April. The import cover improved slightly from 2.2 months in March to 2.3 months in April 2026.

Both the discount rate and the prime lending rate remained unchanged in April 2026, at 6.75 per cent and 10.25 per cent respectively.