Debt in Eswatini

The Consumer Credit Act (CCA) 2016, amended in 2021, regulates much of the credit relationship between consumers and credit providers in Eswatini. It generally covers natural persons and companies with turnover of up to E1 million. Licensed credit providers must assess affordability, and consumers must disclose existing obligations, including debts to stokvels and informal lenders. Central Bank of Eswatini guidance uses a 33% debt-to-income ratio. A borrower should receive credit documents in plain language, a reason when credit is declined, only permitted fees, one free credit report each year, a monthly statement, a settlement quote and the option to reduce a credit limit. The borrower may also choose the credit-life insurer where that cover is required. The Financial Services Regulatory Authority supervises non-bank credit providers, credit bureaus, debt counsellors, pawn brokers, debt collectors and payment distribution agents. Its 2025 list contained about 94 credit providers and one credit bureau, TransUnion ITC Swaziland. Banks fall mainly under the Central Bank of Eswatini, including its MCCP Unit and Ombudsman. Informal borrowing through stokvels or loan sharks can supplement formal credit, but it does not provide the same legal force or consumer protection as regulated credit. Over-indebtedness means that a borrower is probably unable to meet all credit obligations on time after considering income, assets, prospects, obligations and repayment history. The CCA provides for an application to a licensed debt counsellor for debt review and debt re-arrangement. The counsellor assesses the position, notifies credit providers, credit bureaus and FSRA, and negotiates a voluntary plan. A unanimous agreement becomes binding when recorded. If no agreement is reached, the borrower may need a court application. Possible measures include extending the repayment term, reducing instalments, postponing payments, recalculating amounts or declaring credit reckless. During debt review, the borrower generally cannot take new credit or incur extra charges, apart from permitted consolidation arrangements. A credit provider may terminate the review after at least 60 days from the application if no court filing has been made. The application can be barred when an agreement is already in enforcement or when the borrower has elected a priority debt. FSRA reported no licensed debt counsellors in its first-quarter 2025 bulletin, so the statutory process existed but practical access was potentially unavailable at that time. The current tariff and standard duration of debt-counselling fees were not verified in the available research. After missed payments, a written default notice must propose referral to a debt counsellor or the relevant ombudsman. Court enforcement is subject to statutory minimum periods, including at least 20 days of default and at least 10 days after the required notice. A borrower may generally reinstate the agreement before cancellation, sale or execution by paying overdue amounts and permitted default or realisation costs. For hire-purchase or other secured credit, the consumer can generally return the goods within five business days; the provider must issue a valuation notice within 14 days, and the consumer has a 21-day withdrawal period. The provider must seek the best reasonably obtainable sale price, but a remaining shortfall can still be claimed. Harassment at home or work and other prohibited collection practices are banned. A complaint should first go to the provider, then to the Central Bank Ombudsman for a Central Bank-supervised institution or to FSRA for a non-bank provider. A borrower may settle consumer credit at any time without a prepayment penalty. Mortgage early-termination charges are prohibited. After clearance, the provider must notify the borrower and credit bureau within 14 days under the 2021 amendment guidance. Borrowers may request one free credit report each year and dispute inaccurate information. No verified fixed period guarantees automatic credit rehabilitation. Sequestration under the Insolvency Act 81 of 1955 is a separate insolvency process administered through the High Court and Master of the High Court; the Commercial Court handles business rescue and insolvency cases. Eswatini has no evidenced broad consumer-bankruptcy discharge or fresh-start equivalent in the reviewed sources. Public debt is separate from household consumer-credit remedies. The Ministry of Finance manages government borrowing, debt data and debt-service monitoring under the Public Finance Management Act 2017, the Medium-Term Debt Management Strategy and annual borrowing plans. The Central Bank acts as fiscal agent for Treasury Bills and Government Bonds under the Treasury Bills and Government Stocks Act 1994, as amended in 2010. IMF data put public debt at 39.2% of GDP in 2024, with a projection of 42.8% in 2025 and medium-term stabilisation around 42.8% by 2031. Arrears, lower Southern African Customs Union revenue, costly financing and rising debt service create fiscal pressure. Corporate debt can lead to business rescue or insolvency through the Commercial Court, while household indebtedness remains mainly connected to unsecured loans; the Central Bank reported household indebtedness of 74.3% in 2024/25, down from 79.1%, alongside mortgage-default and non-performing-loan exposure.