Appolo Maphalala: Only 12% of Eswatini's adult population have access to loan

Only 12% of the adult population of Eswatini use formal credit instruments, which remains one of the main obstacles to the development of the affordable housing market in the country, stated Eswatini's Minister of Housing and Urban Development Appolo Maphalala on the sidelines of the 13th session of the World Urban Forum (WUF13) in Baku, Report informs.

According to him, despite the relatively high overall level of formal financial service coverage among the population, access to actual lending in the kingdom is extremely limited.

"We have a very stable but small financial sector. Because of this, commercial banks face serious difficulties in providing long-term housing loans at low interest rates," the minister explained.

Mafalala also pointed to specific challenges related to the national land tenure system. Most of the territories in the country are managed by traditional chiefs under the communal Swazi Nation Land system. "The problem is that by law such land cannot serve as collateral in the financial sector," the head of the ministry emphasized.

He added that in areas of active urbanization, including the capital and central districts, privately owned plots remain too expensive for the majority of ordinary citizens.

To address these systemic problems, the authorities of Eswatini have included affordable housing issues in the new strategic plan for 2025–2030, which comprehensively integrates housing policy, environmental sustainability, and economic inclusiveness.

He also called on international financial institutions and investors to participate more actively in the development of the affordable housing sector in Africa.