Mbabane- Eswatini’s private sector demonstrated renewed appetite for investment in the first quarter
of 2026, with businesses increasing their borrowing by 6.9 percent, largely driven by financing demand
from the manufacturing and construction sectors.
The latest Economic Outlook released by the Central Statistics Office (CSO) indicates that credit
extended to the private sector expanded by 3.3 percent during the quarter, signalling growing business
activity despite persistent domestic and global economic headwinds.
According to the report, the increase in lending was underpinned by stronger credit uptake among firms
seeking to finance productive activities, particularly in manufacturing and construction, two sectors
widely regarded as key engines of economic growth and employment creation.
“The annual growth in private sector credit stood at 3.3 percent, while business credit increased by 6.9
percent, mainly supported by the manufacturing and construction sectors,” states the report.
The figures suggest that firms are increasingly turning to financial institutions to fund expansion, capital
expenditure and operational requirements, reflecting cautious optimism about future economic
prospects.
Manufacturing remains a cornerstone of Eswatini’s productive economy, accounting for a significant
share of exports and industrial output. Increased borrowing within the sector is often interpreted as a
leading indicator of anticipated growth in production capacity and investment. Likewise, the
construction industry’s stronger demand for credit points to sustained activity in infrastructure
development and commercial projects.
However, the outlook cautions that businesses continue to navigate a complex operating environment
characterized by rising input costs, elevated utility expenses and external economic uncertainties.
While access to credit has improved, firms remain vulnerable to a range of challenges, including
weakening consumer purchasing power, volatile global commodity prices and slower growth among key
trading partners. These factors continue to exert pressure on profitability and may temper the pace of
private sector expansion in the months ahead.
The report further notes that inflationary pressures and higher operating costs remain significant
concerns for businesses seeking to maintain competitiveness while pursuing growth opportunities.
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