LENDING to large enterprises fell sharply in August, while credit to small and medium-sized enterprises (SMEs) increased, revealing contrasting borrowing trends across the local business sector.
According to the Central Bank of Eswatini’s (CBE) August/September 2026 Monthly Statistical Release, credit extended to large enterprises declined by 8.9% to E8.4 billion, while SME credit rose by 5.6% to E3.9 billion.
The figures came as overall business credit contracted by 4.8% month-on-month to E12.3 billion, although it remained 7.1% higher than in August 2025.
The CBE attributed the overall monthly decline to ‘lower credit uptake in the business sector’, with reduced lending to large enterprises largely accounting for the contraction.
Credit uptake refers to financing borrowed by businesses from lenders.
The contrasting movements indicate that borrowing patterns differed between large companies and smaller enterprises during the month, although the figures do not establish the reasons behind those changes.
For SMEs, the increase points to stronger lending activity during August despite the broader contraction in business credit. Their outstanding credit reached E3.9 billion, representing a significant share of bank financing for smaller enterprises.
However, the increase does not necessarily mean credit has become easier to obtain for all SMEs, as the release does not detail loan approval rates or lending conditions.
Across industries, agriculture and forestry recorded the steepest monthly decline in credit, falling by 24.6%.
Distribution and tourism credit decreased by 4.8%, transport and communication by 3.2% and construction by 1.2%.
Mining and quarrying moved in the opposite direction, with credit surging by 61.9%. Real estate lending increased by 4.7%, while manufacturing rose by 0.8%.
The differences show that lending movements were uneven across productive sectors, with some industries recording increased borrowing even as others pulled back.
Overall, private-sector credit declined by 1.4% month-on-month to E23.5 billion in August but remained 10.5% above its level a year earlier.
This indicates that annual lending growth continued despite the monthly contraction.
Meanwhile, the CBE raised its discount rate by 25 basis points to 7.0% in September, while commercial banks’ prime lending rate increased to 10.50%. A basis point is one-hundredth of a percentage point.
The higher prime rate could make borrowing more expensive for businesses with loans linked to variable interest rates, depending on their agreements. For SMEs seeking financing and larger companies managing existing debt, the rate increase adds another consideration to their borrowing decisions.
Mining credit soars 62%, real estate gains
CREDIT to the country’s mining and quarrying sector surged by 61.9% in August, while real estate lending also recorded growth despite a broader decline in business credit.
The Central Bank of Eswatini’s August/September 2026 Monthly Statistical Release shows that mining and quarrying recorded the strongest monthly increase among the listed business subsectors, while real estate credit rose by 4.7%.
The contrasting movements came as total business credit fell by 4.8% to E12.3 billion, indicating that lending growth was concentrated in selected industries.
The increases provide a snapshot of financing activity in two sectors linked to productive investment and property development.
However, higher credit does not necessarily translate into increased output, new projects or stronger profitability.
The CBE’s June 2026 Quarterly Review previously highlighted strong construction activity, including a 158.8% year-on-year increase in quarry stone production in the first quarter of 2026.
Car loans driving up credit growth
MOTOR vehicle finance recorded the strongest monthly increase among major household loan categories in August, as overall household borrowing continued to expand.
According to the Central Bank of Eswatini’s (CBE) August/September 2026 Monthly Statistical Release, motor vehicle finance increased by 5.4% to E1.6 billion during the month.
Total credit extended to households and non-profit institutions serving households rose by 0.9% month-on-month and 14.2% year-on-year, reaching E10.1 billion.
The CBE said the monthly increase was ‘led by motor vehicle finance’, which outpaced growth in other major household lending categories.
Housing loans increased marginally by 0.1% to E4.3 billion, while unsecured personal loans rose by 0.2% to E4.2 billion.
The growth in vehicle financing comes as borrowing costs rise.
In September, the CBE increased its discount rate by 25 basis points to 7.0%, while commercial banks’ prime lending rate rose to 10.50%.
The higher prime rate could increase repayment costs for borrowers, whose vehicle finance agreements carry variable interest rates, depending on their contractual terms.
The figures indicate that vehicle finance was a key driver of monthly household credit growth, even as the cost of borrowing increased.
| Credit category | Outstanding credit | Monthly change | Annual change |
|---|---|---|---|
| Large enterprises | E8.4 billion | Down 8.9% | Not stated in article |
| Small and medium-sized enterprises | E3.9 billion | Up 5.6% | Not stated in article |
| Total business credit | E12.3 billion | Down 4.8% | Up 7.1% |
| Total private-sector credit | E23.5 billion | Down 1.4% | Up 10.5% |
Source: CBE August/September 2026 Monthly Statistical Release, as reported in the article.
Total rows overlap with their component categories and should not be added together.
