By Credit to the private sector grew marginally by 0.04 per cent month-on-month and 8.2 per cent year-on-year to reach E21.7 billion in October.
The month-on-month increase was mainly driven by higher lending to households and non-profit institutions serving households (NPISH), as well as other sectors of the domestic economy, while credit to businesses contracted over the same period.
The Monthly Statistical Release by the Central Bank of Eswatini (CBE) stated that credit extended to households and NPISH rose by 0.9 per cent month-on-month and 5.1 per cent year-on-year, reaching E9.1 billion at the end of October.
The prime lending rate for commercial banks was left unchanged at 10.25 per cent and the discount rate was maintained at 6.75 per cent in November.
The growth was supported by all subcategories; other personal unsecured loans grew by 1.7 per cent to E3.5 billion, mortgage loans increased by 0.4 per cent to E4.2 billion and motor vehicle loans expanded by 0.3 per cent to E1.3 billion. The structure of credit to households remained broadly unchanged during the review month.
Meanwhile, mortgage loans continued to dominate accounting for 46.8 per cent of total household credit, followed by other personal unsecured loans at 38.7 per cent and motor vehicle loans at 14.5 per cent.
The report further states that, credit extended to other sectors of the domestic economy expanded by 4.7 per cent month-on-month and 7.6 per cent year-on-year reaching E1.2 billion in October.
“The month-on-month growth was recorded across all subcategories; credit to parastatals increased by 12.6 per cent to E452.9 million, credit to local government rose by 2.2 per cent to E92.1 million and credit to other financial corporations grew slightly by 0.1 per cent to E645.4 million,” reads the report in part.
Worth mentioning the share of business credit allocated to small and medium enterprises (SMEs) declined slightly from 33.6% in September 2025 to 32.4% in October 2025, while the share of large enterprises rose from 66.4% to 67.6% over the same period.
“Credit extended to businesses declined by 1.1% month-on-month, but grew by 10.8% year-on-year, settling at E11.4 billion at the end of October. The month-on-month decrease was driven by reduced lending to the following industries manufacturing (-11.2%), agriculture and forestry (9.2%), transport and communications (–2%), construction (–1.7%), real estate (–0.9%), community, social and personal services (–0.04%),” stated the report.
These declines were partly offset by increases in credit to distribution and tourism at 9.2 per cent and mining and quarrying at 8.4 per cent.
The month-on-month fall in credit to businesses emanated from reduced lending to small and medium enterprises (SMEs), while credit to large enterprises increased.
