Mbabane- Credit extended to Eswatini’s large enterprises fell by 8.9% to E8.4 billion in August, while mining and quarrying financing surged by 61.9%, exposing sharply contrasting borrowing trends across the economy as lending costs increased.
The Central Bank of Eswatini’s (CBE) August/September 2026 Monthly Statistical Release shows that total business credit contracted by 4.8% month-on-month to E12.3 billion, despite remaining 7.1% above its August 2025 level.
According to the CBE statical release, Small and medium-sized enterprises (SMEs), however, moved against the broader trend, with their outstanding credit increasing by 5.6% to E3.9 billion during the month.
The contrasting figures suggest that financing activity was uneven across business categories, with smaller enterprises and selected industries recording growth while large enterprises reduced their outstanding borrowing.
The decline in large-enterprise credit accounted for much of the overall monthly contraction in business lending. The CBE attributed the decrease to lower credit uptake in the business sector, although the published figures do not establish why large businesses borrowed less.
The increase in SME credit also does not necessarily indicate that smaller businesses are finding it easier to access financing, as the release does not provide loan approval rates or details of lending conditions.
Meanwhile, mining and quarrying recorded the strongest monthly increase among the business sub- sectors listed, with credit rising by 61.9%. Real estate lending increased by 4.7%, while manufacturing recorded a marginal 0.8% gain.
Other sectors experienced reductions in outstanding credit. Agriculture and forestry recorded the steepest decline, falling by 24.6%, followed by distribution and tourism at 4.8%, transport and communication at 3.2%, and construction at 1.2%.
The uneven movements come as borrowing costs rise. In September, the CBE increased its discount rate by 25 basis points to 7%, pushing commercial banks’ prime lending rate to 10.50%.
The higher prime rate could increase borrowing costs for businesses with loans linked to variable interest rates, depending on their agreements, adding pressure to financing decisions by companies seeking capital or managing existing debt.
Despite the monthly decline in business lending, total private-sector credit fell by a smaller 1.4% to E23.5 billion in August and remained 10.5% higher than a year earlier.
The figures point to continued annual growth in private-sector lending, even as monthly credit movements reveal a pullback among large enterprises and several productive sectors.
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