The Central Bank of Eswatini reported that private sector credit fell 1.4% month on month to SZL 23.5 billion in August 2026, although it remained 10.5% higher year on year. Broad money and banking sector liquidity increased, while provisional gross official reserves rose to SZL 10.8 billion in September. The discount rate and commercial banks’ prime lending rate were each raised by 25 basis points to 7% and 10.5%, respectively, in September. The monthly credit decline reflected a 4.8% contraction in business lending to SZL 12.3 billion, driven mainly by reduced lending to large enterprises and several sectors, including agriculture and forestry. Credit to small and medium-sized enterprises rose 5.6%, while household and nonprofit institution credit increased 0.9% to SZL 10.1 billion. Lending to other domestic sectors grew 19.7%, largely because of higher credit to other financial corporations. Broad money increased 1.6% month on month to SZL 29 billion as growth in time deposits lifted quasi money, offsetting a decline in narrow money. Domestic liquid assets rose 8.2% to SZL 9.3 billion, taking the liquidity ratio to 33.5% from 31.2% in July. Provisional reserves grew 2.6% during September, supported by net rand inflows from trades with banks, and import cover improved to 2.5 months from 2.4 months in August.
Central Bank of Eswatini reports 1.4% monthly credit contraction and discount rate increase to 7%
The Central Bank of Eswatini reported that private sector credit fell 1.4% month on month to SZL 23.5 billion in August, despite 10.5% annual growth. Broad money and liquid assets increased, while provisional reserves reached SZL 10.8 billion and import cover rose to 2.5 months in September. The discount rate and prime lending rate increased by 25 basis points to 7% and 10.5%, respectively.