Mbabane– Eswatini’s Non-Bank Financial Institutions (NBFI) sector recorded a decline of E2 billion in total assets during the first quarter of 2026, with assets falling from E128 billion in the fourth quarter of 2025 to E126 billion.
This is according to the latest data from the Financial Services Regulatory Authority (FSRA).
The decline comes despite growth in several major segments of the industry, suggesting that pressures in some areas of the market outweighed gains elsewhere.
FSRA’s first-quarter overview shows that retirement funds, the largest component of the sector, maintained assets of E60 billion, unchanged from the previous quarter. While stability in retirement savings helped prevent a sharper decline, the segment did not contribute to overall asset growth.
Investment advisors were among the strongest performers, increasing assets from E35 billion to E36 billion during the period. Insurance assets also grew from E8.1 billion to E8.3 billion, while SACCO assets rose from E3.3 billion to E3.5 billion.
However, these gains were not sufficient to offset declines elsewhere in the sector. Retail outlet assets fell from E538 million to E506 million, while other segments either remained flat or registered minimal movement, contributing to the overall reduction in sector assets.
The E2 billion decline represents a decrease of about 1.6 per cent quarter-on-quarter, a relatively modest contraction in a sector that continues to manage assets worth more than E126 billion.
Despite the decline, the NBFI industry remains heavily anchored by retirement funds and investment advisors, which together account for approximately E96 billion, or more than three-quarters of all sector assets. Collective Investment Schemes hold E11 billion in assets, while credit providers account for E4.8 billion and deposit-taking financial institutions E2.3 billion.
The latest figures suggest that investor and saver confidence remains largely intact, particularly in long-term savings and professionally managed investment products. Growth in investment advisory assets and insurance holdings points to continued demand for wealth management and risk protection services.
Additionally, the data also show that the sector comprises 364 licensed entities. Credit and savings institutions make up the largest share at 41 per cent, followed by retirement funds at 30 per cent and insurance entities at 21 per cent.
While the decline in total assets may raise concerns about short-term market conditions, the overall picture remains one of stability, with most major segments maintaining or increasing their asset bases. The performance of retirement funds, investment advisors and insurance companies continues to underscore the sector’s importance in mobilizing savings and supporting economic activity in Eswatini.
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