CREDIT TO PRIVATE SECTOR GROWS BY 0.7%

MBABANE – At the end of October 2024, credit extended to the private sector rose slightly by 0.7 per cent month-on-month and 6.3 per cent year-on-year to reach E20.1 billion.

Growth in private sector credit was observed in all sub-sectors, namely, credit to other sectors of the domestic economy, business sector and households and non-profit institutions serving households (NPISH). This is according to the Central Bank of Eswatini’s monthly statistical release for the months of October and November 2023, released yesterday.
According to the statistics, credit to other sectors of the domestic economy rose by 5.2 per cent month-on-month and fell by 9.5 per cent year-on-year to reach E1.1 billion at the end of October 2024.

Corporations

The month-on-month expansion was solely driven by credit to other financial corporations, which grew by 19.1 per cent to E671.3 million. A decline was, however, registered in credit to parastatals and local government, which decreased by 12.3 per cent to E354.8 million and 4.2 per cent to E79.8 million, respectively. Credit extended to the business sector improved by 0.6 per cent month-on-month and 10.2 per cent year-on-year to reach E10.3 billion at the end of October 2024. Accounting for the growth were the following sub-sectors: Distribution and tourism (4.3 per cent), manufacturing (1.7 per cent), mining and quarrying (1.0 per cent), and construction (0.5 per cent).The increase was somewhat weighed down by a decline in the following subsectors: agriculture and forestry (-7.9 per cent), community, social and personal services (-2.3 per cent), transport & communications (-0.3 per cent), as well as real estate (-0.2 per cent).

Performance

Further analysis of credit to businesses by size showed that an increase was evident in both credit to small and medium enterprises (SMEs) and large enterprises. Consequently, credit to SMEs and large enterprises expanded by 1.5 per cent to E3.2 billion and 0.2 per cent to E7.1 billion, respectively. “Credit extended to households and NPISH edged up by 0.3 per cent month-on-month and 4.2 per cent year-on-year to reach E8.6 billion at the end of October 2024. The improved performance was supported by other personal (unsecured) and housing loans which went up by 6.5 per cent to E3.4 billion and 0.05 per cent to E4.3 billion, respectively,” reads the statistical release.Motor vehicle loans, on the contrary, receded by 15.8 per cent to close the month under review at E1.0 billion.

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