CREDIT EXTENDED TO PRIVATE SECTOR GROWS TO E20.1BN

MBABANE - Credit extended to the private sector increased by 1.0 per cent month-on-month and 7.8 per cent year-on-year to close at E20.1 billion at the end of August 2024.
The rise in private sector credit was driven by credit to the other sectors of the domestic economy and the business sector, while credit to households and non-profit institutions serving households (NPISH) declined.Credit to other sectors of the domestic economy grew by 8.7 per cent month-on-month and declined by 2.6 per cent year-on-year to settle at E1.1 billion at the end of August 2024.

The month-on-month improvement was on the backdrop of expansion in credit to local government and other financial corporations while credit to parastatals receded.
Credit to local government grew by 20.5 per cent to E81.8 million, while credit to other financial corporations rose by 17.3 per cent to E637.1 million. Credit to parastatals, however, declined by 4.3 per cent to close at E397.0 million at the end of August 2024.  Credit extended to the business sector increased by 2.1 per cent month-on-month and 11.6 per cent year-on-year to settle at E10.4 billion at the end of August 2024.

Distribution

Growth in credit to businesses emanated from the following subsectors: Construction (22.7 per cent), manufacturing (5.0 per cent), distribution and tourism (4.0 per cent), and agriculture and forestry (3.6 per cent). In contrast, a decline in credit was observed in the following subsectors: Mining and quarrying (-68.9 per cent), community, social and personal services (1.5 per cent), transport and communication (-1.1 per cent), and real estate (-1.0 per cent). An analysis of credit to businesses by size, indicated that the month-on-month improvement in credit to business was driven by credit to large enterprises while credit to small and medium enterprises (SMEs) declined. Credit to large enterprises grew by 3.0 per cent to E7.2 billion while credit to SMEs decreased marginally by 0.1 per cent to E3.2 billion.

Credit extended to households and NPISH decreased by 1.1 per cent month-on-month and grew by 5.0 per cent year-on-year to reach E8.5 billion at the end of August 2024. The month-on-month contraction was driven by other personal (unsecured) and housing loans.Other personal (unsecured) loans declined by 3.0 per cent to E3.1 billion while housing loans fell by a lesser 0.3 per cent to E4.3 billion. In contrast, motor vehicle loans increased by 1.6 per cent to close at E1.1 billion at the end of August 2024.

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