By Delisa Thwala
The Government of the Kingdom of Eswatini very early at the beginning of the millennium recognized the significant role played by the financial services sector in contributing to the overall growth of the country.
Considering this, one of the main objectives of the government was to improve the reach and depth of financial services delivery in the country.
The lack of comprehensive information about the level of financial inclusion, as well as the factors inhibiting the usage of financial services.
Minister of Finance Neal Rijkenberg spoke at length about this initiative during the Digital Financial Services, Financial Inclusion Strategy, and Global Standards Proportionality Working Group Meetings.
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The Alliance for Financial Inclusion (AFI) in collaboration with the Central Bank of Eswatini (CBE) hosted the 29th Digital Financial Services (DFS),
24th Financial Inclusion Strategy (FIS) Peer Learning Group, and the 19th Global Standards Proportionality (GSP) Working Group Meetings scheduled from May 20– 23, 2024 held at Happy Valley Hotel in Ezulwini.
Noteworthy is that the financial inclusion journey in Eswatini can be traced back to 2011 when the first finscope consumer 2011 survey was carried out, this was further followed up by the Ministry of Finance and the Central Bank of Eswatini (CBE) joining AFI in 2013, joining up as principal and associate members respectively.
Minister Rijkenberg said numerous studies and diagnostics were carried out leading to the making access possible 2014 and, finscope consumer survey 2014 and a making access possible financial inclusion roadmap 2015.
“The ministry of finance intentionally collaborated with the international fund for agricultural development (ifad) to pilot projects aimed at promoting access to finance i.e. The rural finance and enterprise development project in 2011,”
He also added and said: “From the lessons learnt from this project an agreement was reached with the international fund for agricultural and development to design the financial inclusion and cluster development project (finclude) to implement access to finance and financial inclusion initiatives for smallholder farmers and micro and small medium enterprises,”
To ensure its commitment to the financial inclusion agenda the Eswatini government launched for the first time a national financial inclusion strategy in 2017 and also established a financial inclusion agency.
The centre for financial inclusion which has as its primary responsibility the mandate to drive the financial inclusion agenda and to provide a road map for advancing financial inclusion in Eswatini.
The Director Policy Programs and Implementations for AFI Dr. Eleki Boletelwa said prior to the meeting, he was advised that the topics for discussion in the various working groups underscores the importance the ministries of finance and central banks ascribe to financial inclusion.
“Sustainable and efficient financial inclusion requires a long-lasting balance between innovation and safeguards that need to be developed in order to ensure the soundness of the financial sector.
I have no doubt therefore that the discussions, deliberations, and outcomes of the working group meetings will echo far beyond these walls,
Inspiring continued progress in our shared mission to build a more inclusive and sustainable financial future for generations to come,” he said.
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Meanwhile Rijkenberg mentioned that through its various institutions the government of Eswatini has developed a conducive policy and regulatory framework to promote financial inclusion in the kingdom.
He made an example of how the Central Bank of Eswatini and the financial services regulatory authority have played a key role in creating an enabling environment for financial institutions to reach underserved populations.
“The CBE issued regulations to reduce bank charges to enhance access to financial services for the financial inclusion target market. In March 2018 CBE issued the mobile money services providers guidelines to improve operations of mobile money services,” he said.
Eswatini recently developed a national financial consumer education strategy that will assist to provide the framework for better targeting of financial education. Efforts have been made to enhance financial literacy and education among the population to ensure that individuals are empowered to make informed financial decisions.
Financial literacy programs and initiatives have been implemented to improve financial knowledge and capabilities efforts are currently ongoing to integrate financial education into the school curriculum starting from grade 1 to grade 12, while a financial literacy programme for the general population is under development, while we continue to actively participate during the global money week.
ACCESS TO CREDIT REMAINS CHALLENGING FOR WOMEN IN ESWATINI
During a panel discussion, Deputy Director for the Reserve Bank of Zimbabwe Dr. Joseph Josephat Mutepfa revealed that women in Eswatini were still having challenges in accessing credit or financial help.
He said financial inclusion is increasingly positioned as an enabler of broader development goals, in support of the SDGs.
“More and more countries are including an inclusive financial sector as a key objective in their national development plans, and this tendency is further underpinned by the G20 leadership of financial inclusion,
which highlights the ongoing relevance of the SDGs and nationally led financial inclusion efforts. Furthermore, financial markets play a vital role in creating a sustainable future,” he said.
However the biggest worry for him was through reports, they saw that women in Eswatini were still not able to access loans, funds and credit scores to start their own business or push an already established business.
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“For Eswatini an Increase of Financial Inclusion was from 50% in 2011 (FinScope) to 75% in 2022 by growing mobile money and remittances, deepening bank reach, getting credit basics right, ensuring risk management products are available, and enabling alternative channels to serve women and the poor,” he said.
Meanwhile the 2014 MAP diagnostic report for Eswatini considered the country context, demand and supply for financial services, and the regulation of these services.
There were identified practical recommendations for overcoming barriers to greater financial inclusion: growth in the use of e-money to transact and save.
The development of formal domestic and cross-border remittance products to support vulnerable, dependent groups, expanding insurance to better manage the impact of risks.
deepening bank reach to better meet needs and reducing credit costs and protecting consumers.
