Madam,

The recent report by the Central Bank of Eswatini (CBE) revealing that citizens took E8.8 billion in credit by August, paints a worrying picture of how many emaSwati are struggling to make ends meet. The number shows that most people now depend on loans to survive, not because they want to, but because life has become too expensive and salaries cannot keep up with rising costs.

Across the country, stories are the same. Families borrow money to pay school fees, buy food or cover transport costs. Some take out small loans to pay rent or fix their homes. Others depend on store credit just to get groceries. The problem is that when salaries remain low, while prices of goods continue to rise, many people have no other choice but to borrow again and again. This cycle traps them in endless debt.

Banks and microlenders have become the lifeline for many. However, the interest rates are often high, and missing a single payment can lead to serious trouble.

It is common to hear of workers spending most of their monthly income repaying loans, leaving them with almost nothing for their daily needs. This has caused stress, broken families and hopelessness among many emaSwati who once dreamt of financial freedom. Unemployment has made things worse.

Many young people cannot find stable jobs and those who do are often paid very little. Some end up borrowing money to start small businesses, but without proper support, many of those businesses fail, leaving the borrowers deeper in debt. Rural families also feel the pain as farming has become difficult due to high costs of inputs and unreliable rainfall.

Government often speaks of improving the economy, but the daily reality for most citizens tells another story. Prices of basic items such as bread, electricity, fuel and transport keep going up. The coming bread price increase of E1.17, for instance, may seem small to some, but for families already surviving on loans, it will only add more strain.

What this situation shows is that poverty and the rising cost of living have forced many emaSwati to depend on credit just to survive. It is not a sign of progress but of growing hardship. The Central Bank’s figures should serve as a warning that many households are sinking under debt and if nothing changes, the country could face a serious financial and social crisis.

There is an urgent need for the government to create more sustainable jobs, control the prices of basic goods and regulate lending practices to protect low-income earners. Financial education should also be strengthened so that people understand how to manage credit better. Most importantly, salaries need to match the cost of living so that borrowing becomes an option, not a necessity.

E8.8 billion in loans is not just a number - it represents the struggles, tears and resilience of thousands of emaSwati trying to survive each month. Unless real change happens soon, debt will continue to grow and hope will continue to fade for many hardworking citizens of this country.

Banks and microlenders have become the lifeline for many. However, the interest rates are often high, and missing a single payment can lead to serious trouble. (Pic: Point.com)