Eswatini is a landlocked Southern African country with a population of 1.21 million, of which 25% live in urban areas, primarily in Mbabane and Manzini. Eswatini is heavily affected by the economy of its neighbour South Africa, with which it has a long-standing relationship. Price hikes and import duty fees for essential raw materials, building materials and other goods affect Eswatini’s own economic development. In 2023, Eswatini’s economy experienced remarkable growth, with a GDP growth rate of 4.84% in 2023. This rebound comes after a challenging year in 2022, where the GDP grew by only 0.5%. As of the latest data, Eswatini’s GDP per capita is E68 518 (US$3 797), and the total GDP is E82.97 billion (US$4.598 billion). During the outer years (2024 to 2026), growth is expected to average 3.3%. Eswatini’s inflation rate is projected to be around 5.3%, showcasing a strong performance amidst global economic pressures.⁶

In late March 2023, the Central Bank decided to maintain the discount rate at 7.25%, which is 50 basis points lower than the South African repo rate.⁷ In 2022, the Eswatini Lilangeni, pegged to the South African Rand, had notably depreciated against the US dollar, driven by concerns over South Africa’s energy crisis. This depreciation led the Central Bank to implement stricter monetary policies to manage inflation and ensure currency stability. This has affected affordability, consumer demand, and access to credit for housing.

While financial inclusion rates are relatively high at around 85%, gaps and risks persist.The rise of mobile money providers, Non-banking Financial Institutions (NBFIs), and digital financial services have improved access to financial services for the public, although issues around over-indebtedness and fraud remain.⁸ The regulatory oversight of NBFIs and Savings and Credit Co-Operative Societies (SACCOs) remains weak under the Financial Services Regulatory Authority (FSRA), which also struggles with timely data collection. The impending merger of FSRA with Central Bank of Eswatini presents an opportunity to strengthen oversight and boost financial inclusion.

Generally the rate of financial inclusion is lower for women than for men. However 95% of Eswatini’s women have access to mobile phones, which creates opportunity for access to financial services.⁹ This is important given the limited access of women to property, credit, and traditional financial services such as bank accounts. Women married under community of property (COP) laws previously lacked ownership control despite contributing financially.

The housing finance market is a vital component of Eswatini’s economy, with the total value of outstanding residential mortgages issued by licensed and registered providers reaching approximately E6.41 billion (US$346.7 million) at the end of 2023. This amount represents 7.54% of the country’s GDP, indicating the significant role of mortgage financing within the overall economy.¹⁰

Among the five banking institutions providing mortgages, First National Bank (FNB), Standard Bank and most recently Nedbank allow the refinancing of an existing mortgage loan.¹¹ The Swaziland Building Society also offers a commercial property mortgage refinancing product that allows borrowers to settle existing commercial mortgage loans using funds from a new loan, offering greater flexibility and access to finance.¹²

Residential loans have a Maximum Loan-to-Value (LTV) ratio of 90%, with mortgage terms extending up to 25 years. The maximum mortgage instalment to household income ratio is set at 40%.The foreclosure policy is well-established, managed within the Recoveries and Collections unit, creating a strong legal framework to support mortgage lending.¹³

The introduction of Fintech innovations in Eswatini, led by Imbita Swaziland Women’s Finance Trust and Digimage Investments, is transforming the financial landscape by enabling mobile-based savings and loan services for underbanked rural women, and improving access to financial services through products such as ePayNet and iCredit.¹⁴ Despite the global availability of innovative financing options such as lease financing and venture capital, these remain under-utilised in Eswatini.¹⁵ The Central Bank of Eswatini and the Eswatini FinTechWorking Group are driving policy innovation to support this transformation. 16 These advancements offer significant opportunities for investment, particularly in expanding credit and savings access, with potential positive impacts on the housing market and broader economic development.

Eswatini’s formal non-banking sector is vibrant, encompassing 120 Credit Saving Institutions (CSIs).¹⁷ The two registered credit bureaus in the country are Digimage Investments (Pty) Ltd and Trans Union ITC Swaziland (Pty) Ltd.¹⁸ Data from these indicates that mortgage loans together with vehicle finance make up 46% of total household credit.¹⁹ The mortgage underwriting process for formal banks involves requesting a credit report from a credit bureau, bank statements, proof of address, and identification from applicants.

Affordability in Eswatini remains a significant challenge due to the high unemployment rate of 35.71% (2021), income inequality represented by a Gini coefficient of 54.60 (2016), and rising living costs. The financial strain on households is evident, with an average monthly income of E5 716 (US$317). This income level underscores the difficulty many citizens face in affording housing, ²⁰ particularly when 32% of the population lives below the international poverty line of US$2.15 per day, and 55% below the lower-middle-income threshold of US$3.65 per day.

The price of the cheapest newly-built house by a formal developer in an urban area is approximately E800 000 (about US$42 653).²¹ This house, typically sized at 100 m2, highlights the high entry cost for homeownership in urban areas. For those unable to purchase, the typical monthly rental price for such a house is approximately E4 000 (US$221). These figures underscore the affordability crisis, as most public servants, whose pay scales range from E9 740 (US$540) to E27 480 (US$1 523), find it challenging to afford either option without substantial financial assistance or subsidies.²²

The high cost of land and housing in urban areas such as Mbabane and Manzini also adds to the affordability crisis. Plots often cost around E500 000 (US$30 466) for 2 000m2.²³ In 2024, Eswatini’s housing market saw more real estate owners, but it remains limited, with rising inflation and unstable interest rates leading to an increase in non-performing residential mortgage loans, adding pressure on homeowners. The residential rental market shows a preference for 1- and 2-bedroom houses, which are more affordable, while demand for 3- and 4-bedroom homes is limited. Despite an increase in property supply, demand is declining due to economic challenges, and with an average monthly income of E6 000 (US$332), many individuals struggle to cover basic expenses and mortgage payments.²⁴

Eswatini can enhance housing affordability by balancing household expenses, where 20-30% of income goes to essentials, and improving mortgage access. Adjusting credit costs and eligibility criteria could enable more citizens, particularly in the informal sector, to afford housing. Eswatini’s government has also taken steps with low-cost housing programmes and rental housing subsidies easing the burden for low- and moderate-income families.²⁵

Urban housing in Eswatini is diverse, ranging from formal structures provided by the Eswatini Housing Board (EHB) and private developers, to informal settlements. In key urban areas such as Mbabane and Manzini, the demand for modern housing is driving the development of both high-end estates and more affordable rental units.

Although there is no official residential real estate price index in Eswatini, observed trends indicate stable prices across most areas. However, regions such as Mbabane, Ezulwini, and Malkerns have seen an increase in real estate prices driven by high demand. Urban areas such as Mbabane and Manzini are experiencing a surge in demand for modern housing, driven by a growing middle class seeking secure, amenity-rich homes. Developers are responding by focusing on gated communities and upscale residential estates that offer a blend of security and lifestyle features.

The market for vacant land remains strong, particularly for residential and industrial development. Prices vary widely, with plots near city centres such as Manzini commanding higher prices due to their proximity to essential services.There is a shift towards sustainable construction, with developers adopting eco-friendly materials and energy-efficient designs. The real estate market in Eswatini is expected to maintain its positive growth, fuelled by urbanisation, economic development, and rising interest from both local and foreign investors.²⁸

As of 2020,the property registration process was completed within 21 days, which is notably shorter than the average duration of 53.6 days observed across Sub-Saharan Africa. The procedure entailed nine steps, and the comprehensive process costs approximately 7.3% of the property’s assessed value.²⁹

In Eswatini, local building materials such as bricks and cement are commonly used in the construction of formal housing. These materials are generally durable and well-suited to the local climate, ensuring long-term sustainability of the structures. However, in informal settlements, less durable materials such as corrugated iron and wood are more prevalent due to their lower cost and easier accessibility. These materials, while affordable, often compromise the longevity and safety of the buildings.

A significant proportion of construction materials in Eswatini, especially for highquality and modern construction, are imported.³⁰ These materials include steel, specialised roofing, and certain finishing products that are not produced locally. The reliance on imported materials has contributed to higher construction costs, particularly in light of global supply chain disruptions and currency fluctuations, which have made these materials more expensive. While local materials are used where possible, they are often considered lower quality compared to imported options, which are preferred for their durability and compliance with modern building standards. The ongoing rise in costs is a significant barrier to affordable housing, affecting both developers and prospective homeowners.³¹

The Eswatini Deeds Registry falls under the Ministry of Natural Resources and Energy and was established under Section 3 of the Deeds Registry Act No. 37 of 1968. As of 2020, Eswatini’s Registrar of Deeds records 20 000 registered title deeds land parcels, with 7 300 of them registered in the names of women. There are a total of 1 772 properties registered for property rate payments in the main urban centres, however, only 315 properties have deeds, with the majority of properties being rented out in Mbabane. This is because non-citizens cannot own land and can only obtain long-term leases (10-99 years). With property transfers, 1 004 deeds of transfers were concluded successfully in 2021/2022, down from 1127 properties registered in 2020/2021. Registering property in the Eswatini takes 21 days, which is substantially 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% of the property value.

In terms of the residential property market, Ezulwini, a town along the MR3 highway between Mbabane and Manzini, remains a hotbed of activity. There has been a spike in land prices over recent months due to large corporations buying up the remaining tracts of land available along the highway, particularly with road frontage. There is also a high demand for rental properties, but the availability of well-priced, high-quality rental units continues to be a problem. Due to a lack of options in the market, landlords continue to charge relatively high rentals for poor quality stock.

In terms of specific legislation regulating the property sector, the government has drafted the Estate Agents Registration, Licensing and Professional Indemnity Regulation Act of 2017, which is not yet operational. There is also no registered regulatory body for real estate agents. As a result of the formation of the Eswatini Realtors Association (ESWARA) in 2018, realtors are able to represent themselves. ESWARA collaborates with other organisations supporting estate agents’ work, such as banks, surveyors, valuers, conveyancers, human settlement authorities, municipalities, and the land registry.

Recent policy and legislative changes in Eswatini aim to enhance housing finance and accessibility. The Eswatini Housing Board (EHB) introduced a rent-to-own initiative in its 2023-2026 strategic plan to provide alternative housing solutions for those facing financing difficulties.³² Additionally, the African Development Bank Loan Bill No. 3 of 2022 supports economic recovery by enhancing governance, stimulating investment, and augmenting social protection, thereby improving housing finance.³³

The National Development Plan 2023–2028, published in October 2023, outlines comprehensive measures to enhance Eswatini’s economic landscape, crucial for sustainable housing development. It emphasises fiscal consolidation, economic diversification, and social sector improvements. These anticipated economic advancements are set to positively impact the housing sector by making home financing more accessible and increasing the availability of affordable housing. ³⁴

Eswatini’s housing sector presents significant opportunities for investors, particularly in the affordable housing segment. The country’s housing deficit is around 200 000 units,³⁵ driven by rapid urbanisation and population growth. The launch of the National AfCFTA Implementation Strategy aims to boost trade and investment, providing a favourable environment for housing investment. This strategy enhances the potential for investors to engage in the expanding housing market and address the pressing need for affordable housing units.³⁶

In Eswatini, informal settlements often rely on low-cost, durable materials such as steel and concrete. Supporting initiatives that improve the quality and affordability of these materials, or introducing sustainable alternatives, can significantly enhance living conditions. Community-based projects using locally-sourced materials can reduce costs and promote sustainable housing solutions. These efforts can be complemented by government and private sector collaborations to provide technical and financial support to these communities.³⁷

Technological innovations, particularly in the Fintech sector, are transforming access to housing finance in Eswatini.³⁸ Mobile money platforms such as MTN Mobile Money have become crucial in reaching underserved populations, offering small loans, and facilitating savings for housing purposes.³⁹ The expansion of digital financial services is streamlining mortgage processes, making financing more accessible to low-income families.

Key trends to watch include the growing influence of Fintech in housing finance, the implementation of the AfCFTA strategy, and the pressures of urbanisation. Challenges such as regulatory uncertainties, limited product diversity in housing finance, and the need for robust digital infrastructure must be addressed to fully capitalise on these opportunities.

Eswatini faces significant challenges due to the limited availability of reliable housing finance data. Government-provided information is often outdated, focusing more on policies than current financial details, due to resource and human capital constraints. The country also lacks key metrics such as a residential real estate price index and annual dwelling completions. To address these gaps, there is a pressing need for secondary data from reputable international organisations. While the Central Bank provides some financial statistics, they are insufficient for comprehensive strategic planning in the housing sector

The Mobeni Flats, developed by the Eswatini Housing Board (EHB), is a long-standing project aimed at providing affordable rental housing for Eswatini’s working-class population. Established in 1989, the flats were initially built to accommodate workers from nearby industrial areas, giving them easy access to their jobs. Today, the project continues to evolve, with ongoing modernisation and expansion efforts to meet growing demand.

The flats are located in two key areas – Mbabane, the capital, and Matsapha, an industrial hub. These locations offer residents proximity to economic activities, public transportation, schools, and essential services. In Matsapha, the flats are particularly convenient for blue-collar workers, while in Mbabane, they provide access to the city’s commercial center.

With 1 034 units (580 in Matsapha and 453 in Mbabane), the flats are designed for low- to middle-income earners, including families and self-employed individuals. Most units are two-bedroom flats, with rents ranging from E1 795 to E6 255 (US$99 – US$346), depending on the unit size and location. The Sub Committee of Public Enterprises (SCOPE) regulates rental prices to keep them affordable. Over the years, the project has received positive market response, with many tenants residing for more than a decade. EHB is currently modernising older units and planning new construction phases. There are also plans to introduce rent-to-own schemes, offering tenants the opportunity for homeownership.

For more details, visit: https://ehb.co.sz/products-services.php

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 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
Standard Bank Eswatini: https://www.standardbank.co.sz
Construction Industry Council: https://www.cic.co.sz
Eswatini Economic Policy Analysis and Research Centre (ESEPARC): https://www.separc.co.sz/overview/

1. Email correspondence with Sharol Nxumalo Manager, New Business,Vehicle and Asset Finance, Secured Lending at Standard Bank Eswatini, 20 July 2024.
2. United Nations Economic Commission for Africa (2024). Eswatini launches National Strategy to boost
   investment under the African Continental FreeTrade Area. 8 March 2024.
3. United Nations Capital Development Fund (2023). Eswatini Financial Inclusion Refresh. 3 April 2023.
4. Government of Eswatini (2023). Eswatini National Financial Inclusion Strategy 2023-2028. https://www.afiglobal.org/publications/eswatini-national-financial-inclusion-strategy-2023-2028/ (Accessed 10 July 2024). Pg. 21.
5. Ibid. Pgs. 21-23.
6. Central Bank of Eswatini (2023).Annual Integrated Report 2022/23.
7. Ibid.
8. World Bank (2023). Digital Economy Can Boost Eswatini’s Development and Enhance Service Delivery. 8 February 2023.
9. Grameen Foundation (n.d.). USAID W-GDP Eswatini Women’s Employment for Economic Recovery Project
   (WEER) Financial Ecosystem Gap Analysis Findings. Presentation. https://shorturl.at/xDeid (Accessed 14 August
   2023).
10. Central Bank of Eswatini (2023).The value of outstanding residential mortgages at the end of a calendar year for residential mortgages issued by licensed/registered residential mortgage providers.
    https://www.centralbank.org.sz/financial-stability-report/ (Accessed 12 August 2024).
11. Standard Bank (n.d.). Products and Services. Urban Home Loan. https://shorturl.at/H5eX0 (Accessed 19 August 2023).
12. Swaziland Building Society (2023). Commercial Property. https://www.sbs.co.sz/commercial-property/ (Accessed 19 August 2023).
13. See footnote 3.
14. Grameen Foundation (2022). Meet our Digital Financial Services Innovation Prize winners: Catalyzing change in
    Eswatini through digital tools. https://shorturl.at/Vc1bW (Accessed 21 July 2024).
15. The Alliance For Financial Inclusion (2023). Eswatini National Financial Inclusion Strategy (2023-2028). Published 31 May 2024. Pg. 48.
16. Central Bank of Eswatini (CBE), Eswatini FinTech Working Group (EFWG),Alliance for Financial Inclusion (AFI), and Olayinka David-West Consulting (2023). Eswatini FinTech Landscape Report 2023. Pg. 114.
17. Financial Services and Regulatory Authority (2020). Integrated Annual Report 2020.
18. Financial Services and Regulatory Authority (n.d.). Financial Services Directory – Credit Bureau. https://www.fsra.co.sz/directory/cb.php (Accessed 1 August 2023).
19. FinMarkTrust (2020). Eswatini Financial Inclusion Report. Pg. 70.
20. World Bank (2023). Eswatini Economic Update: Raising the Game with Efficient State-Owned Enterprises. https://shorturl.at/MqgQo (Accessed 8 August 2024).
21. Swazihome (2024). Price of the cheapest, newly built house by a formal developer or contractor in an urban area in local currency units. https://www.swazihome.com/property/ (Accessed 12 August 2024).
22. World Salaries 2024).Average civil servant salary in Swaziland. https://worldsalaries.com/average-civil-servantsalary-in-swaziland (Accessed 12 August 2024).
23. Dlamini, B.L. (2013). Housing restrictions need to be reviewed. 14 November 2013.Times of Swaziland.
24. Email correspondence with Lwazi Mkhabela, Business Development Manager at Eswatini Housing Board, 16 August 2024.
25. Cities Alliance. (n.d.). Country Programme: Eswatini. https://shorturl.at/KrJVl (Accessed 29 July 2023).
26. Times of Eswatini. (2021). Female landlord ‘attacked’. Press Reader. 1 June 2021.
27. See footnote 25.
28. Realestate Hum (2024). Swaziland’s Changing Real Estate Landscape- Exploring Swaziland’s Evolving Real Estate Landscape. https://www.realestatehum.com/swaziland/real-estate-trends (Accessed 8 August 2024).
29. World Bank (2020). Doing Business 2020. Economy Profile Eswatini. Pgs. 4 & 22.
30. Eswatini Economic Policy Analysis and Research Centre (ESEPARC) (2024). Eswatini’s Visionary Leap into Sustainable Construction by 2030.
31. Eswatini Construction Industry (2021). Construction Industry Performance Report.
32. Eswatini FinancialTimes. (2023). ‘Rent-to-own a good initiative to encourage property ownership’. 19 August 2023. Stories by Bahle Gama.
33. Parliament of the Kingdom of Eswatini. House of Assembly Legislative Business.
    https://www.parliament.gov.sz/legislative/houseofassembly/ (Accessed 21 July 2024).
34. United Nations. Eswatini National Development Plan 2023-2028.
35. Wood, D. (2019). Housing Investment Landscapes: eSwatini/Swaziland. Center for Affordable Housing Finance in Africa (CAHF).
36. United Nations Economic Commission for Africa (2024). Eswatini launches National Strategy to boost
    investment under the African Continental FreeTrade Area. 7 March 2024.
37. Musawenkosi Ndlangamandla (2024). Climate resilience assessment of informal settlement buildings in Eswatini.
38. Central Bank of Eswatini (2023). Eswatini FinTech Landscape Report.
39. Mastercard and MTN Group (2024). Mastercard and MTN Group Fintech partner to drive acceleration of mobile money ecosystem in Africa across 13 markets. 29 February 2024.