Times Of Swaziland: CREDIT TO PRIVATE SECTOR GROWS BY 0.7%

CREDIT TO PRIVATE SECTOR GROWS BY 0.7%
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Sabelo Majola on 17/12/2024 08:11:00


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.