Credit extended to Eswatini households recorded a marked improvement in 2024, rising by an average of 5.4%, compared to 3.8% in 2023.
This development was announced by the Governor of the Central Bank of Eswatini, Dr. Phil Mnisi, during the Governor’s Annual Monetary Policy Statement Address held at the Bank’s headquarters in Ezulwini on Thursday.
“This improvement in household credit growth partly reflected gradual recovery as consumer finances stabilized, supported by rising real incomes and the slightly lower borrowing costs,” Dr. Mnisi said.
In 2024, the Central Bank adjusted its discount rate downward twice: by 50 basis points in July and by another 25 basis points in November, bringing the benchmark interest rate to 7.0%, where it remained as of March 2025.
According to the Bank’s latest figures, household credit slowed in early 2025, increasing by 3.8% year-on-year in March, down from the 2024 average. The Governor said this suggests subdued demand for credit entering the new financial year, which may be linked to tighter financial conditions globally and cautious consumer spending behaviour.
Despite the early signs of deceleration, the Central Bank remains optimistic about the outlook for household lending. The Bank forecasts that private sector credit will continue to expand in the short to medium term, supported by improved access to finance, digital banking innovations, and ongoing recovery in domestic demand.
However, Dr. Mnisi warned that external risks, such as global inflationary pressures, tighter international financial markets, and geopolitical tensions—including recent trade restrictions imposed by the United States—could pose challenges to the domestic credit environment.
The Statement also noted that overall private sector credit grew by 10.8% year-on-year in March 2025, with the business sector experiencing a stronger recovery at 18.3%, driven by increased investment and working capital needs.