Financial Cooperatives issue over E1.35 billion in loans

Financial cooperatives in Eswatini have steadily increased their lending activity over the past eight years, with issued loans surpassing E1.35 billion in 202.

This is according to a survey shared by Deputy Commissioner for Cooperative Development, Bongani Maziya.

The survey, which tracked lending activity from 2014 to 2021, shows a dramatic rise in issued loans, reflecting the growing role of cooperatives in supporting Swazi communities and businesses.

In 2014, financial cooperatives issued E609 million in loans. Lending activity accelerated significantly over the next few years, peaking in 2017 at E1.27 billion, marking a remarkable increase as cooperatives expanded their reach across the country.

However, 2018 saw a sharp dip in lending, with issued loans falling to E879 million, and remaining relatively steady in the following two years E878 million in 2019 and E845 million in 2020.

The sector rebounded strongly in 2021, with issued loans surging to E1.35 billion, the highest level recorded in the eight-year period.

This growth underscores the crucial role of financial cooperatives in promoting access to credit, particularly for micro, small, and medium enterprises, as well as households across urban and rural areas.

Maziya emphasised that this lending activity reflects not only the financial capacity of cooperatives but also their commitment to fostering economic inclusion, entrepreneurship, and community development.

“Financial cooperatives continue to be a vital part of Eswatini’s economic landscape, mobilising resources and providing loans that empower members to improve their livelihoods,” he said.

With the cooperative sector thriving, the government and development partners remain committed to supporting initiatives that enhance the capacity, governance, and sustainability of these institutions, ensuring that their impact continues to grow in the years ahead.