Mbabane- Private sector borrowing in Eswatini continues to gather pace, with credit growth far outstripping inflation and signalling rising confidence among businesses and households despite relatively high lending rates.
According to the latest Recent Economic Developments report released by the Central Bank of Eswatini, outstanding credit to the private sector rose to E23.3 billion at the end of April, representing annual growth of 9.5 percent and monthly growth of 0.7 percent.
The increase comes as inflation remained subdued at 2.0 percent in April, meaning credit growth is expanding at nearly five times the rate of consumer prices.
For businesses, stronger credit growth often points to increased spending on expansion, equipment purchases, inventory and working capital. Households, meanwhile, are also continuing to access financing for consumption and property-related spending, helping to support domestic demand across the economy.
The Central Bank report shows that economic growth remained firm during the fourth quarter of 2025, with Quarterly Gross Domestic Product (QGDP) expanding by 5.7 percent year-on-year. Although slightly lower than the revised 5.9 percent recorded in the previous quarter, the growth rate remains among the strongest in recent years.
Monetary policy conditions were left unchanged during the review period, with the discount rate maintained at 6.75 percent and the prime lending rate at 10.25 percent. The Bank’s decision suggests confidence that inflation remains under control while credit expansion continues to support economic activity.
The strong growth in lending is emerging as one of the clearest indicators of momentum within the economy. With inflation still low, businesses are operating in a more predictable cost environment, which can improve planning and encourage investment decisions.
However, the report also highlighted pressures in the external sector. Gross official reserves declined to E8.8 billion at the end of May, reducing import cover to approximately two months. Public debt also rose to E41.2 billion, equivalent to 39.5 percent of GDP.
Here’s a more newspaper-style business story that uses the trade surplus as the central theme, but reframes it around what the shrinking surplus means for the economy and businesses.
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