MBABANE – Competition between FINCORP and IDCE has reached unprecedented levels as the two development finance institutions battle for market dominance while expanding lending to businesses.
Competition in Eswatini’s development finance sector is becoming increasingly intense, with Eswatini Development Finance Corporation (FINCORP) and the Industrial Development Company of Eswatini (IDCE) now separated by the slimmest of margins in market share, signalling a significant shift in the country’s development financing landscape.
According to the Financial Services Regulatory Authority’s (FSRA) Quarter One 2026 Non-Bank Financial Institutions Statistical Bulletin, the gap between the two leading development finance institutions (DFIs) has narrowed to just 0.04 percentage points, the closest the market has been in recent years.
The report shows FINCORP retained the leading position with a 50.02 per cent market share, while IDCE followed almost neck-and-neck with 49.98 per cent.
The National Industrial Development Corporation (NIDC) accounted for just 0.001 per cent, remaining largely insignificant within the sector.
The regulator noted that unlike previous periods, when one institution enjoyed a much wider lead, the market is now almost evenly split between the country’s two largest development financiers.
“The shift in market domination appears to be narrowing, with FINCORP maintaining only a marginal lead in the current quarter,” the FSRA observed.
The narrowing gap suggests that both institutions are becoming increasingly competitive as they seek to finance businesses, entrepreneurs and strategic development projects that contribute to economic growth.
While the competition for market share has intensified, the sector has simultaneously recorded remarkable growth in lending activity.
The combined DFI loan portfolio expanded by 33.17 per cent during the first quarter of 2026, increasing from E611.11 million in the final quarter of 2025 to E813.79 million. On an annual basis, the loan book grew by 24.24 per cent, rising from E655 million in the first quarter of 2025. This represents one of the strongest lending expansions recorded by the sector in recent years.
Perhaps more importantly, the rapid increase in lending has not been accompanied by deteriorating loan quality.
Instead, the industry’s non-performing loan (NPL) ratio improved to 1.71 per cent, down from 2.27 per cent in the previous quarter and 2.11 per cent a year earlier.
The simultaneous growth in lending and decline in bad loans indicates that development finance institutions are expanding credit while maintaining prudent risk management practices.
Improved asset quality suggests that businesses benefitting from development finance are generally honouring their repayment obligations despite the prevailing economic challenges.
The report further shows that lending activities continued to generate positive financial results.
Gross lending income rose by 2.36 per cent year-on-year to E85.99 million, supported by an 11.59 per cent increase in administration fee income and a 2.96 per cent rise in interest income from loans.
Net income from lending also improved marginally by 1.09 per cent to E38.17 million.
However, the growth could have been stronger had it not been for a 67.83 per cent decline in bad debt.
…IDCE remains largest by asset size
MBABANE – While FINCORP narrowly leads the market in terms of market share, IDCE remains the country’s largest development finance institution by asset size.
The FSRA data shows IDCE controlled 57.90 per cent of total sector assets, compared to 42.09 per cent for FINCORP, while NIDC accounted for just 0.01 per cent.
The regulator attributed this difference to the institutions’ distinct operating models. IDCE’s larger balance sheet is primarily driven by substantial investments in subsidiaries, whereas FINCORP’s assets are concentrated in loans and advances, reflecting its stronger emphasis on direct lending to businesses and entrepreneurs.
