Housing Finance in Eswatini
Overview
This profile is also available in French here.
To download a pdf version of the full 2020 Eswatini country profile, click here.
The Kingdom of Eswatini is a landlocked country in Southern Africa, bordered by South Africa and Mozambique. It is one of the smallest countries on the continent with a population of just over 1.1 million. The economy is dominated by manufacturing and services industries, with about 75 percent of the population living in rural areas. Eswatini has been affected by the effects of COVID 19 pandemic, and this has caused various challenges in the socio-economic activities expected through 2021.Given the country’s dependency and strong economic links to South Africa, the performance of the South African economy amidst the COVID-19 pandemic will detect Eswatini’s growth and recovery.
Housing delivery on behalf of the government of the Kingdom of Eswatini is delegated to the Eswatini Housing Board (EHB). The EHB was appointed by the government to implement a phased housing programme to finance, construct and manage housing units for civil servants. The EHB also manages and leases residential estates. Although mandated to provide housing finance, EHB is constrained financially.
Housing supply is affected by difficulty in sourcing construction materials and price hikes for materials such as cement and steel. The construction sector’s economic contribution has remained negative in recent years and has worsened amid the pandemic. Consequently. COVID-19 is likely to have an adverse impact on the property market and by extension (private and public) construction and housing delivery.
There are opportunities to partner or invest in institutions such as EHB to meet Eswatini’s housing needs. The dynamic microfinance sector and high number of Savings and Credit Co-Operative Societies (SACCOS) in the country also means there is potential to leverage these institutions to finance incremental housing.
Find out more information on the housing finance sector of Eswatini, including key stakeholders, important policies and housing affordability:
- Macroeconomic Overview
- Access to Finance
- Affordability
- Housing Supply
- Property Markets
- Policy and Regulation
- Opportunities
- Availability of data on housing finance
- Covid-19 Response
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.
Download yearbookEswatini
Macroeconomic Overview
The Kingdom of Eswatini is a landlocked country covering an area of approximately 17 360km, with a population of approximately 1.451 million. The Kingdom of Eswatini is classified as a low middle income country with a gross domestic product (GDP) at market prices of US$4.5 billion. In 2018, 75 percent of the total population lived in rural areas and 25 percent lived, largely in the urban centres of Mbabane and Manzini. Despite the country’s lower middle income status, the proportion of the population living below the extreme poverty line is expected to increase to approximately 30 percent in 2020.[1] Access to low and middle income housing and housing finance is constrained by affordability levels, despite Eswatini’s residential property market being extremely diverse.
The Kingdom of Eswatini is economically dependent on South Africa for 60 percent of its exports and approximately 85 percent of its imports.[2] The manufacturing and services industries are the largest contributor to GDP, while agriculture has been declining.[3] In 2019, the services sector, manufacturing and agriculture contributed 53.15 percent, 33.8 percent and 8.77 percent respectively.[4] The construction sector has also been in decline since 2017. Real GDP contracted by an estimated one percent in 2019 following 2.4 percent growth in 2018.
In 2020, the impact of the coronavirus outbreak will be felt on Eswatini’s economy through various channels. Due to the impact of the COVID-19 pandemic on key economic sectors, coupled with severe droughts and unsustainable fiscal deficit (forecasted to reach 10.2 percent of GDP in 2020)[5] real GDP is expected to contract by 1.1 percent as 2020 ensues. This economic contraction is expected through 2021.[6] The socio-economic impact includes job losses, affecting the welfare of already vulnerable households. The Lilangeni/South African Rand, weakened by more than 20 percent, hitting a record low during the first quarter of 2020. Furthermore, forecasted inflation has been revised upwards,[7] largely due to higher costs of imported goods (which Eswatini is highly dependent on).[8] A Supplementary Appropriation Bill (No. 5) was approved in March 2020,[9] allocating E100 million (US$5.8 million) to the public health sector. The Central Bank of Eswatini cut lending rates by 275 basis points (to 3.75) in March 2020, reducing the prime interest rate to 7.25 percent. Additional COviD-19 policy responses included targeted monetary and macro financial measures to cushion the impact on vulnerable groups.[10]
In its 2020 budget speech, the Ministry of Finance highlighted its commitment to supporting a private sector led recovery, including improving the ease of doing business[11] (Eswatini ranks 121 out of 190 in 2020).[12] Given the country’s dependency and strong economic links to South Africa, the performance of the South African economy amidst the COVID-19 pandemic will dictate Eswatini’s growth and recovery.
[1] World Bank (2020). Eswatini Macro Poverty Outlook, April 2020. http://pubdocs.worldbank.org/en/548321492188172694/mpo-swz.pdf(Accessed 28 August 2020). Pg. 2.
[2] World Bank (2019). Eswatini Country Overview. https://www.worldbank.org/en/country/eswatini/overview (Accessed 28 August 2020).
[3] FinMark Trust (2018). Eswatini Diagnostic. http://finmark.org.za/wp-content/uploads/2019/04/Eswatini_MAP_SMME_Diagnostic_online.pdf (Accessed 28 August 2020). Pg. 6.
[4] Statista (2020). Swaziland: Distribution of gross domestic product across economic sectors from 2009 to 2019. https://www.statista.com/statistics/575480/share-of-economic-sectors-in-the-gdp-in-swaziland/#:~:text=Share%20of%20economic%20sectors%20in%20the%20GDP%20in%20the%20Kingdom%20of%20Eswatini%202019&text=In%202019%2C%20the%20share%20of,sector%20contributed%20about%2053.15%20percent(Accessed 28 August 2020).
[5] African Development Bank (2020). Africa Economic Outlook: Supplement amid COVID-19. Pg. 102.
[6] World Bank (2020). Eswatini Macro Poverty Outlook, April 2020. http://pubdocs.worldbank.org/en/548321492188172694/mpo-swz.pdf(Accessed 28 August 2020). Pg. 2.
[7] Central Bank of Eswatini (2020). Economic review and Inflation Report July 2020. https://www.centralbank.org.sz/monetarypolicy/economy/ECONOMIC%20REVIEW%20%20INFLATION%20REPORT.pdf (Accessed 28 August 2020). Pg. 1. The AfDB projects inflation to increase to 4.3 percent in 2020 – See African Development Bank (2020). Africa Economic Outlook: Supplement amid COVID-19. Pg. 102.
[8] Mamba, M. (2020). Socio-economic impact of COVID-19 in Eswatini. United Nations Resident Coordinator Office (UNRCO). Pg. 3.
[9] Dlamini, S (2020). Parliament approves e48m for coronavirus budget. 10 March 2020. Eswatini Observer
http://new.observer.org.sz/details.php?id=11896 (Accessed 28 August 2020).
[10] International Monetary Fund (2020). Policy responses to COVID-19. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#E (Accessed 28 August 2020) and Mamba, M. (2020). Socio-economic impact of COVID-19 in Eswatini. United Nations Resident Coordinator Office (UNRCO). Pg. 4.
[11] Rijkenberg. N. (2020). Kingdom of Eswatini Budget Speech 14 February 2020. http://www.sra.org.sz/documents/1581687723.pdf(Accessed 28 August 2020). Pg. 6.
[12] World Bank (2020). Doing Business 2020. Economy Profile Eswatini. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/eswatini/SWZ.pdf(Accessed 31 August 2020). Pg. 4.
Access to Finance
The Kingdom of Eswatini’s banking landscape is comprised of the Central Bank of Eswatini, four commercial banks and one building society, the Eswatini Building Society (EBS). Three of the four commercial banks operating in the country are subsidiaries of parent South African banks – Standard Bank, First National Bank and Nedbank. The fourth commercial bank is the Eswatini Development and Savings Bank, which is state owned.
The Kingdom of Eswatini has a dynamic microfinance sector with approximately 114 microfinance institutions (MFIs) registered with the Eswatini Financial Services Regulatory Authority (EFSRA). In addition, there are 52 registered Savings and Credit Co-Operative Societies (SACCOS) in the country. TransUnion ITC Swaziland (Pty) Ltd is the sole credit bureau registered with the EFSRA.[1]
The National Financial Inclusion Strategy for Swaziland 2017-2022, highlights its strategic vision to increase the depth of financial inclusion and grow the percentage of adults with access to two or more formal products.[2] The 2018 FinScope Consumer Survey indicated that 13 percent of the Swazi population that is 18 years or older is financially excluded; they do not have, nor do they use any financial products or services, formal or informal. Although the banking sector has traditionally served the government, corporate and middle to high end market,[3] financial inclusion has improved by 14 percent since the last survey conducted in 2014.
In its Private Sector Credit Report for June 2019 to June 2020, the Central Bank of Eswatini notes that outstanding loans related to housing amounted to E3.6 billion (US$20.8 million).[4] The main mortgage dispersing financial service providers include Standard Bank, First National Bank (FNB), Nedbank, EBS and Swazi Bank. Mortgage terms are generally 20 years, with Standard Bank offering mortgages for a 25-year period and FNB offering 100 percent mortgages. The prime lending rate is currently at 7.25 percent, with the actual interest rate applied on a mortgage dependent on the applicant’s personal credit score.
Residential mortgages and other household lending account for the largest (25.1 percent) component of bank lending to the private sector as at May 2019, while construction and real estate accounted for 12.3 percent of total lending.[5] However, Eswatini’s weakening macroeconomic environment and highly leveraged households has had a negative impact on the credit and banking sector, with credit growth falling from 7.5 percent in 2017 to 3.5 percent in 2018.[6]
General requirements when applying for a mortgage include, among others, submitting proof of residence, a deed of sale and a confirmation letter from the chief’s kraal declaring a right to occupy land if it is on Swazi National Land.[7]
The EBS offers construction loans for residential and commercial properties. Applicants are required to submit a building plan approved by the City Council or written consent from the Ministry of Housing and the local municipal council as well as a copy of the supervising architect or projects manager’s professional fees and approval from the Eswatini Environmental Authority. Applicants are also required to submit proof of income.[8]
The Eswatini Housing Board (EHB) is mandated to provide housing loan finance to Swazis wishing to develop their own properties. The EHB is not subsidised by the government and has found it necessary to tap into higher income markets to expand their income streams, to allow them to develop infrastructure and finance their affordable homes. In recent years the EHB has financed its developments through borrowings from local banks, as well as the Public Service Pension Fund (PSPF) and Swaziland National Provident Fund (SNPF).[9]
In response to the COVID-19 pandemic, banks have introduced measures to assist customers affected by the pandemic. This includes short term financial support or relief on credit products that will be assessed on an individual basis.
[1] Eswatini Financial Services Regulatory Authority (2019). Financial Services Directory. http://www.fsra.co.sz/directory/index.php (Accessed 16 August 2019).
[2] Ministry of Finance (2017). National Financial Inclusion Strategy for Swaziland 2017-2022. https://www.afi-global.org/sites/default/files/inlinefiles/National%20Financial%20Inclusion%20Strategy%20Swaziland%20Final.pdf (Accessed 25 August 2019). Pg. 14.
[3] Government of Swaziland (2017). Financial Sector Development Implementation Plan. https://www.fsra.co.sz/media/notices/FinancialSectorDevelopmentImplementationPlan.pdf (Accessed 28 August 2020). Pg. 21.
[4] Central Bank of Eswatini (2020). Central Bank of Eswatini Monthly Statistical Release June-July 2020. https://www.centralbank.org.sz/monetarypolicy/statistics/Monthly%20Statistical%20Release%20June%20-July%202020.pdf (Accessed 28 August 2020). Pg. 3.
[5] International Monetary Fund (2020). Kingdom of Eswatini IMF Country Report, February 2020. https://www.imf.org/en/Publications/CR/Issues/2020/02/10/Kingdom-of-Eswatini-2019-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-49037 (Accessed 28 August 2020). Pg. 29.
[6] International Monetary Fund (2020). Kingdom of Eswatini IMF Country Report, February 2020. https://www.imf.org/en/Publications/CR/Issues/2020/02/10/Kingdom-of-Eswatini-2019-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-49037 (Accessed 28 August 2020). Pg. 2.
[7] Standard Bank Eswatini (2019). Urban Home Loan. https://www.standardbank.co.sz/swaziland/personal/Borrowing/Urban-home-loan (Accessed 23 August 2019).
[8] Eswatini Building Society (2019). Building Loans (Residential and Commercial). https://www.sbs.co.sz/index.php/homeloans. (Accessed 23 August 2019).
[9] Eswatini Property Review (2018). PSPF’S property investment portfolio increases to E1.4 billion. Volume 1, Issue 1 April – June 2018. https://issuu.com/barcodecreative.eswatini/docs/eswatini_property_review_-issue_1__ (Accessed 31 August 2020). Pgs. 14-15.
Affordability
On average, a household comprises four members with an average of two members of the household being income-earning.[1] Only 20 percent of those surveyed in the 2018 FinScope Consumer Survey indicated that they received income from the formal sector. While access to (productive) credit has increased slightly, as more adults seek to invest in businesses, education and property, affordability remains a key issue in Eswatini. The 2018 FinScope Survey shows that for the adult population that do and do not have access to a bank or mobile money account, affordability determines access to financial instruments.[2] In 2014, only eight percent of adults surveyed indicated that they invested in property, while four percent indicated that they invested in improving, extending, or building their home. With short-term savings, nine percent indicated that they were saving towards buying or building a house.[3]
The unemployment rate in the Kingdom of Eswatini increased slightly to 22.90 percent in 2019 from 22.5 percent in 2018.[4] The minimum wage rate is E531.6 (US$30.84) a month for a domestic worker, E420 (US$24.36) a month for an unskilled worker, and E600 (US$34.80) a month for a skilled worker. The minimum wage was last revised in 2011.[5] Assuming that up to 25 percent of a person’s income can be used for housing, an individual earning a minimum wage would not be able to purchase a residential property through a mortgage. Standard Bank requires a mortgage applicant to earn a minimum monthly net salary of E5 000 (US$290.02). The maximum loan term across all the lenders is approximately 25 years. The EBS offers mortgages slightly below the prime rate.
According to the EHB, delivering a plot and a house between E250 000 (US$14 501) and E450 000 (US$26 102) is considered affordable as most of the market, who are low income earners would fall into this category of housing.[6]
[1] FinMark Trust (2018). FinScope Consumer Survey Highlights Eswatini 2018. http://finmark.org.za/wp-content/uploads/2019/05/FS_Consumer_Eswatini_English-2018-pocket-guide.pdf (Accessed 28 August 2020). Pg. 5.
[2]FinMark Trust (2018). FinScope Consumer Survey Highlights Eswatini 2018. http://finmark.org.za/wp-content/uploads/2019/05/FS_Consumer_Eswatini_English-2018-pocket-guide.pdf (Accessed 28 August 2020). Pgs. 30-33.
[2] World Bank (2019). Eswatini Country Overview. https://www.worldbank.org/en/country/eswatini/overview (Accessed 28 August 2020).
[3] Finmark Trust (2014). Presentation: FinScope Consumer Survey Swaziland 2014. Launch Findings. 05 February 2015. Finmark Trust. Pg. 54.
[4] Trading Economics (2019). Swaziland Unemployment Rate. https://tradingeconomics.com/swaziland/unemployment-rate (Accessed 31 August 2020).
[5] Minimum Wage (2019). Swaziland Minimum Wage, Labor Law, and Employment Data Sheet Swaziland Minimum Wage Rate 2019. https://www.minimum-wage.org/international/swaziland (Accessed 28 August 2019).
[6] Eswatini Property Review (2018). PSPF’S property investment portfolio increases to E1.4 billion. Volume 1, Issue 1 April – June 2018. https://issuu.com/barcodecreative.eswatini/docs/eswatini_property_review_-issue_1__ (Accessed 31 August 2020). Pg. 16.
Housing Supply
Housing delivery on behalf of the government of the Kingdom of Eswatini is delegated to the EHB, a public enterprise set up in terms of the Swaziland National Housing Board Act No. 3 of 1988 with the core mandate of providing affordable housing for low and middle income Swazi citizens.[1]
Under the Institutional Housing Project, the EHB was appointed by the government to implement a phased housing programme for civil servants. Under this programme, the SNHB is required to raise finance, and construct and manage the housing units to be leased to the government. Phase one involves the construction of 364 units for three government agencies. Phase two of the programme involves developing 236 two to three bedroom semi-detached housing units to be allocated to Ministry of Health employees, and Swaziland Civil Aviation Authority employees.[2]
The Construction Industry Council highlights that COVID-19 pandemic forced approximately half of the companies surveyed to scale down of operations.[3] Most companies also faced difficulty sourcing construction materials and price hikes for materials such as cement and steel. The construction sector’s economic contribution has remained negative in recent years and has worsened amid the pandemic. Consequently. COVID-19 is likely to have an adverse impact on the property market and by extension (private and public) construction and housing delivery.
[1] Southern African Development Community, Development Finance Sector Resource Centre (n.d.). DFI Swaziland: Page 2 of 2. http://www.sadc-dfrc.org/dfi-swaziland/page/0/1 (Accessed 8 August 2019).
[2] Swaziland National Housing Board (n.d.). The Institutional Housing Project. http://www.snhb.co.sz/index.php?option=com_content&view=article&id=223&Itemid=65 (Accessed 06 August 2019)
[3] Construction Industry Council (2020). Report: Impact of COVID-19 on the construction industry of Eswatini. https://www.cic.co.sz/media/publications/Report_Impact_of_COVID-19_on_Construction_Sector.pdf (Accessed 28 August 2020). Pg. 5.
Property Markets
Eswatini’s residential property market is diverse with a wide range of properties and prices. However, the lower to middle income market is in short supply of quality rental housing. The shortage is evident in major cities (such as Mbabane and Manzini) where there is significant demand for rental housing priced between E4 000 (US$232) and E8 000 (US$464) a month.[1]
The EHB manages and leases affordable residential estates in Matsapha and Mbabane. The Matsapha Estate comprises two developments that can accommodate 580 households. The cheapest housing unit is located in the Matsapha Old Mobeni Estate development; the unit has two bedrooms, a shared bathroom, kitchen and living room. The monthly rental for this unit is E1 665 (US$96.58). The six estates across its Mbabane residential portfolio accommodate 466 households. There appear to be no specific COVID-19 responses for renters, as the EHB published a notice stating that there is no suspension of rent, amid misleading information in March 2020.[2]
The sales portfolio of the EHB consists of properties developed by the EHB, some of which are in Woodlands, Nkhanini, Mhobodleni and Thembelisha.[3] The Mhobodleni township development has 18 plots which are each 400 square metres, and the units range from one to three bedrooms. The cheapest housing unit in the development is a one bedroom and one bathroom 52.83 square metre unit, with a sale price of E406 315 (US$23 568.16).[4]
It takes 21 days to register a property in the Kingdom of Eswatini, much less than the Sub-Saharan Africa average of 53.6 days. Nine procedures are required, and the overall process is estimated to cost approximately 7.3 percent of the property value.[5]
The Eswatini Deeds Registry is situated under the Ministry of Natural Resources and Energy and was established under Section 3 of the Deeds Registry Act No. 37 of 1968.[6] For the period October to December 2019, the Deeds Registry’s quarterly performance reports shows there were 230 deed transfers and 253 mortgage bond registrations. Comparatively, for the period July to September 2019, 364 deed transfers and 367 mortgage bond registrations were recorded. On average, Mbabane accounted for 25 percent of all deed transfers and 35 percent of mortgage bonds registered between July to September 2019.[7]
There is currently no legislation governing real estate agents in the Kingdom of Eswatini. However, the government is drafting the Estate Agents Registration, Licensing and Professional Indemnity Regulation Act, which is aimed at safeguarding the interests of estate agents and setting industry standards in the real estate market. There is also no established real estate agency affairs board or council. In September 2018 local real estate agents met to deliberate the formation of Eswatini Realtors Association, but the association is yet to be registered.[8]
[1] Property24 (2019). Foreigners residing in Eswatini pushing rental rates up. 4 December 2019. https://www.property24.com/articles/foreigners-residing-in-eswatini-pushing-rental-rates-up/29081 (Accessed 28 August 2019).
[2] Eswatini Housing Board (2020). News on Africa Eswatini Edition. https://m.facebook.com/NewsOnAfricaSZ/posts/2628289660788552 (Accessed 31 August 2020).
[3] African Union for Housing Finance (n.d.). AUHF Member Profile: Swaziland National Housing Board. http://www.auhf.co.za/wordpress/assets/Swaziland-National-Housing-Board.pdf (Accessed 16 August 2019) Pg. 2.
[4] Email correspondence with Siphesihle Jele, Eswatini Housing Board, 21 August 2019.
[5] World Bank (2020). Doing Business 2020. Economy Profile Eswatini. https://www.doingbusiness.org/content/dam/doingBusiness/country/e/eswatini/SWZ.pdf(Accessed 31 August 2020). Pg. 4 and Pg. 24.
[6] The Government of the Kingdom of Eswatini (2019). Deeds Registry Performance Report for Quarter October-December 2019. http://www.gov.sz/images/MNRE_PICS/Deeds_Performance_Report_for_the_Quarter_ending_31_December_2019.pdf (Accessed 31 August 2020).
[7] Ministry of Natural Resources and Energy (2019). Deeds Registry Performance Report for Quarter ending September 2019. http://www.gov.sz/images/Deeds_Performance_Quarter_ended_30_September_2019.pdf (Accessed 31 August 2020).
[8] Eswatini Property Review (2018). Local Real Estate Agents Form Association. http://www.barcodecreative.net/assets/files/Eswatini%20Property%20Review%20Vol%201%20Issue%203%20-%20Digital%20Issue_36pgs%20(R).pdf (Accessed 17 August 2019). Pg. 14.
Policy and Regulation
Seven key policy and legislation documents guide how land and real estate is treated in the Kingdom of Eswatini, namely the Housing Policy, the Physical Planning Policy, the Sectional Titles Act of 2003, the Human Settlements Authority Act of 1988 as amended in 1992 (Act No. 13 of 1992), the Crown Lands Disposal Regulations of 2003, Vesting of Land in Kings Order (1973) and the Crown Lands Disposal Act No. 13 of 1911.[1] The Sectional Titles Act of 2003 is still awaiting approval from the King. The lack of sectional title properties and supporting legislation has been cited as a constraining factor for Eswatini’s residential property landscape, which excludes the middle income class from ownership. The legislation is therefore seen as an opportunity for this gap market.[2]
The Kingdom of Eswatini’s Ministry of Housing and Urban Development has three primary functions, namely physical planning, land administration and housing. The Ministry is mandated to co-ordinate and facilitate urban development as well as provide housing throughout the country through effective physical planning, housing research and development, and land administration. Despite the provision of housing being noted in its mandate, its core objectives do not detail the construction or delivery of affordable housing. This task is delegated to the EHB.
The Constitution of the Kingdom of Swaziland formally recognises a dual land tenure system, with a dominant customary land tenure system. The King holds 60 percent of the land, called Swazi Nation Land, “in trust” for the Swazi people. The remainder (40 percent) is privately owned Title Deed Land.[3] In 2013 a draft Land Bill was introduced. While steps have been taken to finalise both the draft Land Policy and the draft Land Bill, neither have been passed.[4]
The Human Settlements Authority Act of 1988 as amended in 1992 (Act No. 13 of 1992) establishes the Human Settlements Authority, whose functions include assisting the government in formulating policy relating to human settlements, ensuring the orderly development of existing and future urban and rural settlements and establishing a finance mechanism for ensuring the supply and maintenance of approved shelter and infrastructure throughout the Kingdom of Eswatini.[5]
[1] The Government of the Kingdom of Eswatini website. Ministry of Housing and Urban Development. http://www.gov.sz/index.php/documents-policy (Accessed 31 August 2020).
[2] Eswatini Property Review (2018). PSPF’S property investment portfolio increases to E1.4 billion. Volume 1, Issue 1 April – June 2018. https://issuu.com/barcodecreative.eswatini/docs/eswatini_property_review_-issue_1__ (Accessed 31 August 2020). Pg. 17.
[3] Eswatini Property Review (2018). PSPF’S property investment portfolio increases to E1.4 billion. Volume 1, Issue 1 April – June 2018. https://issuu.com/barcodecreative.eswatini/docs/eswatini_property_review_-issue_1__ (Accessed 31 August 2020). Pg. 27.
[4] Amnesty International (2018). “They Don’t See us as People” – Security of Tenure and Forced Evictions in Eswatini. https://www.amnesty.org/download/Documents/AFR5587852018ENGLISH.PDF (Accessed 29 August 2019). Pg. 5.
[5] Parliament of Eswatini (1992). The Human Settlements Authority Act, 1988 as Amended In 1992 (Act No. 13 of 1992). Pg. 2.
Opportunities
There is great opportunity to either partner with, or invest in, institutions like the EHB and the EBS. These two institutions have an intricate understanding of the housing needs and demands of the Kingdom of Eswatini. In addition, the institutions are well-positioned to navigate the economic and political terrain.
There are various ways in which investors could support the EHB’s mandate to provide housing finance, specifically for housing developed for civil servants who have long-term stable incomes.
The Kingdom of Eswatini has a high number of MFIs and SACCOS, as well as great participation in these sectors, specifically by those residing in rural areas. There is potential to use MFIs and SACCOS to finance incremental housing.
Availability of data on housing finance
Several of the official sources of information, such as government websites and representatives of various government departments, either do not collect the data relevant to their departments, have outdated data, or have data that is not publicly available. This results in the need to use secondary sources for information or outdated data that does not reflect the current landscape. This may be influenced by constrained financial and human capital resources in government departments. Nationally representative surveys are expensive and often require external financial support to complete.
Covid-19 Response
Eswatini reported its first case of COVID-19 on 14 March 2020. The Government imposed a partial lockdown on 27 March 2020, with the Manzini region (the country’s hotspot) facing a full lockdown a month later. The process of easing the lockdown began in early May 2020. To strengthen the national health system, the Government approved a supplementary budget and received health emergency financial assistance from the World Bank and IMF. Eswatini implemented targeted (monetary and fiscal) policy responses to protect vulnerable groups, including wider social protection and an array of tax relief measures. The commercial banking sector introduced (customised) short term financial support and payment arrangements. The Central Bank deployed monetary policy tools to ease market liquidity, reduce the cost of debt and boost credit extension. It reduced its lending rate from 6.5 percent to 3.75 percent since March 2020. No specific housing related measures were reported.
Websites
Central Bank of Eswatini https://www.centralbank.org.sz
Eswatini Bankers Association http://www.eba.org.sz/index.php
Eswatini Deeds Registry http://www.gov.sz/images/Deeds
Eswatini Property Review http://www.barcodecreative.net/assets
Eswatini Finance http://eswatinifinance.org/
Eswatini Financial Services Regulatory Authority http://www.fsra.co.sz
Swaziland Building Society https://www.sbs.co.sz
Eswatini Housing Board https://www.snhb.co.sz
Southern African Development Community http://www.sadc-dfrc.org
Standard Bank Eswatini https://www.standardbank.co.sz
African Union for Housing Finance http://www.auhf.co.za
African Development Bank https://www.afdb.org
