. . .However, after accounting for revaluation losses, total comprehensive loss amounted to E266.6 million, reflecting the impact of exchange rate movements and valuation adjustments.
The Central Bank of Eswatini has recorded a profit of E40.8 million for the financial year ended March 31, 2026.
However, after accounting for revaluation losses, total comprehensive loss amounted to E266.6 million, reflecting the impact of exchange rate movements and valuation adjustments.
This is contained in the 2025/26 Annual Integrated report released by CBE this week which reaffirmed the bank’s commitment to transparency, accountability, and integrated thinking by providing stakeholders with a holistic view of the Bank’s financial and non-financial performance, governance, strategy execution, and long-term sustainability. 
The report demonstrates how the Bank’s strategy, governance, performance, risks, opportunities, and outlook are interconnected in delivering on its mandate of maintaining price and financial stability while supporting the socio-economic development of Eswatini.
The report stated that Eswatini’s economy showed notable resilience, with real GDP growth estimated at 5.6% in 2025, up from 3.0% in 2024, supported by strong performance in trade, financial services, information and communication technology, and infrastructure development.
“Domestic economy activity is projected to grow by 5.2% in 2026, and to average 3.8% over the medium term (i.e., 2027 – 2030).
The sustained growth expected in 2026 is anticipated to be driven by the primary and secondary sectors, while the tertiary sector is projected to moderate,” the report reads in part.
The report highlighted that inflation averaged 2.6% in 2025/26, down from 3.9% the previous year, and closing at a historic low of 1.6% in March 2026. Core inflation, measured as the Consumer Price Index (CPI) excluding food,
fuel and energy, also moderated, averaging 3.0% in 2025/26 compared to 3.8% in 2024/25.
“This was largely on account of a moderation in CPI for services, which rose by 2.3% during the review period, down from 3.7% in the previous financial year.
The external sector strengthened, with the current account surplus widening to E2.5 billion (2.4% of GDP) in 2025 from E1.9 billion in 2024, supported by a strong trade surplus and a 4.0% increase in export earnings.
Credit to the private sector grew by 8.1% year-on-year, while broad money supply expanded by 17.1%, reflecting improved lending conditions and sustained economic activity.
Gross official reserves grew by 5.5%, increasing from E9.1 billion in March 2025 to E9.6 billion in March 2026.
However, at this level, the reserves remained below the benchmark of 3 months of import cover, standing at 2.2 months.
In response, the Bank is intensifying strategies aimed at strengthening and rebuilding reserve buffers,” the report reads in part.
The report further stated: “On the fiscal front, the 2026/27 National Budget, presented under the theme “Agape Love—Love in Action for Economic Transformation,” emphasises accountability, responsibility, and prudent use of public resources.
It is structured around three pillars: pro-growth, pro-discipline, and pro-investment, all aimed at supporting economic recovery and long-term transformation, with a focus on infrastructure, energy and water security, digitalisation, and industrial development.
The fiscal deficit is expected to narrow to E5.0 billion (4.8% of GDP) in 2026/27 from E6.0 billion in the previous year, supported by stronger revenue growth. However, it remains above the SADC target of 3.0% of GDP,”.
The report further highlighted that the Government continues to face significant fiscal pressures due to ongoing cash flow constraints, driven by revenue collections that have fallen below expectations while expenditure demands remain high.
Despite efforts to improve revenue collection and control spending, these measures have not been sufficient, resulting in the fiscal deficit widening from the budgeted 3.0% of GDP in 2025/26 to an estimated outturn of 6.4% of GDP.
“The worsening fiscal position has led to increased borrowing, causing public debt to rise from 38.0% of GDP in March 2025 to 40.6% of GDP in March 2026.
Higher debt levels have increased interest and repayment obligations, placing additional pressure on government finances and reducing fiscal space to address emerging economic and social priorities.
Going forward, restoring fiscal sustainability will require stronger revenue mobilization, improved expenditure efficiency, prudent debt management, and structural reforms aimed at broadening the tax base and promoting sustainable economic growth,” the report reads in part.
On the monetary Policy overview,
During the 2025/26 financial year, the Central Bank of Eswatini maintained an accommodative monetary policy stance aimed at supporting economic growth while preserving price and financial stability.
The Monetary Policy Consultative Committee (MPCC) held six scheduled meetings during the year to assess inflation developments,
domestic, regional, and global economic conditions with the aim of formulating appropriate monetary policy recommendations in ensuring the maintenance of price stability mandate of the Bank. Based on this assessment, the Bank reduced the discount rate by 25 basis points from 7.0% to 6.75% in May 2025.
The rate was subsequently maintained at 6.75% through March 2026.
The monetary policy environment remained challenging, with heightened uncertainty stemming from geopolitical tensions, particularly the conflict in the Middle East, trade-related disruptions, and their implications for energy and food prices.
These developments posed upside risks to inflation and weighed on global growth prospects, requiring a careful balance between supporting economic activity and containing inflationary pressures.
The Bank continued to utilise its available instruments, including the discount and call rates, to manage monetary conditions, support macroeconomic stability, and safeguard the currency peg.
The direction of monetary policy will continue to be driven by the assessment of risks and uncertainties in international, regional and the domestic economy.
