By 
By Delisa Magagula
The Eswatini Development Finance Corporation (FINCORP) has reinforced its financial position with over E1.5 billion actively circulating among its clients.
In a strategic move, the institution has opted to focus exclusively on supporting its existing borrowers rather than issuing loans to new clients.
Speaking to Market View Group, FINCORP Managing Director (MD) Dumsani Msibi clarified that the corporation had not halted lending but had instead prioritized its current client base.
“We have not stopped lending, but at the moment, we are only lending to existing clients,” he stated.
This decision, he explained, was driven by the need to maintain financial equilibrium while sustaining the corporation’s investment portfolio.
RELATED: YERF approves over E1.2 mln in loans to aspiring entrepreneurs
Msibi highlighted that FINCORP sources its funding from both international and local institutions, including the African Development Bank, the European Investment Bank, pension funds, and the stock exchange.
However, he acknowledged that the institution was grappling with a supply-and-demand imbalance.
“The demand for our services far exceeds the capacity we may hold at any given point,” he noted.
Given the scarcity of financial resources, he emphasized that the corporation must periodically adjust its lending strategy to ensure sustainability.
According to Msibi, FINCORP disburses approximately E50 million in loans every quarter, with funding partially sustained through monthly loan collections, which range between E35 million and E40 million.
“It is important to understand that for us to on-lend, we also use the collections we do,” he explained.
Despite the temporary restrictions on new loan applications, Msibi reassured stakeholders that the institution remained financially robust.
He revealed that FINCORP had successfully raised E1.3 billion in funding against an equity base of E300 million, demonstrating its ability to attract capital. However, he acknowledged that this came with repayment obligations to lenders.
Addressing concerns about the corporation’s loan portfolio, Msibi stated that FINCORP maintained a collection rate of around 80 per cent, describing this as a strong performance for a development finance institution.
RELATED:PSPF, FINCORP AND UMELUSI SHOWER YOUNG ENTREPRENEURS WITH SEED CAPITAL
Meanwhile, its portfolio risk stood at approximately 16 to 17 per cent.
“Of course, you want to collect everything that you give out as loans, and that’s our day-to-day duty,” he said. He also emphasized that the corporation operated an open-door policy for clients facing repayment difficulties, providing business support where necessary.
Msibi confirmed that since the institution was not accepting applications from new clients, there were no pending loan requests.
Instead, all loan applications currently being processed were from existing clients, with approvals occurring on a weekly basis.
