PRIVATE SECTOR LENDING FALLS BY 0.7%

MBABANE - During the month of September 2024, credit extended to the private sector fell slightly by 0.7 per cent month-on-month but grew by 7.4 per cent year-on-year to settle at E19.9 billion.

According to the Central Bank of Esswatini (CBE) monthly statistical release, the month-on-month decline in private sector credit was observed in credit to other sectors of the domestic economy and the business sector. However, credit to households and non-profit institutions serving households (NPISH) increased at the end of September 2024. Credit to other sectors of the domestic economy receded by 5.8 per cent month-onmonth and 14.4 per cent year-on-year to reach E1.1 billion at the end of September 2024. The reduction was solely driven by credit to other financial corporations, which fell by 11.5 per cent to E563.6 million over the month under review. In contrast, credit extension to parastatals and local government increased by 1.9 per cent to E404.6 million and 1.7 per cent to E83.3 million, respectively.

Credit extended to the business sector contracted by 1.4 per cent month-on-month and grew by 12.0 per cent year-on-year to reach E10.3 billion at the end of September 2024. The month-on-month decline was on account of credit extended to the following subsectors: Construction (-3.5 per cent), manufacturing (-3.4 per cent), transport and communication (-1.7 per cent) as well as agriculture and forestry (0.6 per cent).

Communication

Partly offsetting the decline was an increase in credit to the following sub-sectors: Mining and quarrying (228.2 per cent), community, social and personal services (1.6 per cent), distribution and communication (0.5 per cent), as well as real estate (0.1 per cent). An analysis of credit to businesses by size, reflected contrasting outcomes with credit to large enterprises contracting while credit to small & medium enterprises (SMEs) increased. As a result, credit to large enterprises fell by 2.1 per cent to E7.1 billion while credit to SMEs grew slightly by 0.3 per cent to E3.2 billion.

Credit extended to households and NPISH edged up slightly by 0.8 per cent month-on-month and 5.5 per cent year-on-year to reach E8.6 billion at the end of September 2024. Growth was supported by other personal (unsecured) and motor vehicle loans, which rose by 2.4 per cent to E3.2 billion and 0.5 per cent to E1.1 billion, respectively. Mortgage loans on the other hand, receded by 0.4 per cent to close the month under review at E4.2 billion.

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