Eswatini raises E1.2 billion under JSE Bond Programme

By Delisa Magagula

The Central Bank of Eswatini has confirmed that the Government’s E4 billion Protea Bond Programme, listed on the Johannesburg Stock Exchange (JSE) in 2024, has so far raised E1.186 billion.

This update was delivered on Friday when Governor Dr. Phil Mnisi tabled the Central Bank’s 2024/2025 Integrated Annual Report.

The Protea Bond Programme was launched in May 2024 with the objective of broadening Eswatini’s sources of funding, diversifying debt instruments, and attracting a wider investor base through the South African capital market.

According to the Central Bank, the programme has made steady progress since its debut, with nearly 30 percent of the full E4 billion target already secured.

The bonds were issued in tranches, each listed on the JSE, and have attracted participation from regional investors.

Governor Mnisi described the progress as part of a broader effort to strengthen financial resilience and improve market integration.

“We have made tangible strides across strategy, innovation, and support to our domestic economy,” Dr. Mnisi said.

The Protea Bond Programme was designed to meet several strategic objectives:

Provide government with an alternative and reliable source of financing.
Support fiscal sustainability and reduce reliance on short-term borrowing.
Enhance Eswatini’s presence in regional capital markets.
Create benchmarks that could improve the pricing of other government and corporate issuances.

The Central Bank explained that proceeds from the bond programme are being channelled towards financing government operations, including infrastructure and service delivery.

Beyond the bond programme, the Integrated Report outlined key economic and financial sector developments during the year under review.

Meanwhile, with the gross official reserves, the Bank reported that reserves increased from E7.8 billion in the previous year to E9.1 billion, equivalent to an import cover of approximately four months.

“Inflation rate eased to 3.9 percent compared to 4.7 percent recorded the previous year. This was attributed to stable food prices and improved supply conditions. The Bank strengthened its position in gold holdings, which remains an important component of Eswatini’s reserves portfolio,” reads the report in part.

It further states that the banking sector stability banks were reported to be well-capitalised, with strong liquidity positions and profitability sustained despite economic headwinds.

Governor Mnisi highlighted these indicators as evidence that the financial sector remained resilient.

The Central Bank also underscored the domestic impact of its operations. The Ezulwini Project, valued at E160 million, engaged over 30 local firms in construction, engineering, consultancy, and other services.

The Bank added that this direct involvement of local companies demonstrated its commitment to ensuring that major projects contribute to job creation and private sector growth.

The report detailed how the Central Bank had redefined its institutional strategy to focus on three central pillars: purpose, performance, and realignment.

The Bank noted that these changes were designed to ensure that its activities remain relevant to Eswatini’s current and future economic needs. This included closer alignment with government policy priorities, enhanced transparency, and emphasis on measurable outcomes.

Governor Mnisi reported that during the year under review, the Bank also hosted several regional central banks for technical exchanges and knowledge-sharing engagements.

In terms of governance, the Bank reported progress in resolving legacy issues related to the Swaziland Women Economic Empowerment Trust (SWEET) and Diamond Africa.

The Governor said these matters were handled with the objective of safeguarding financial integrity and protecting stakeholders.

The Bank also highlighted the recognition it received for best practices in coin management and the design of commemorative banknotes. Staff members were also acknowledged internationally for their technical contributions to central banking.

The Integrated Report noted a milestone in financial inclusion with the licensing of Letshego Eswatini Bank as the first digital bank in the country. Letshego was granted a 12-month provisional license to roll out digital banking services, which the Central Bank described as a significant step toward expanding access to financial services.

Looking ahead, the Central Bank confirmed that additional tranches of the Protea Bond will be issued as market conditions allow, with the objective of raising the full R4 billion under the programme.

The Bank further indicated that maintaining investor confidence will be critical to the successful completion of the programme. This will depend on both domestic fiscal discipline and regional market stability.

Dr. Mnisi stated that the Bank would continue to pursue measures aimed at preserving monetary and financial stability, while at the same time supporting the government’s development priorities.

Worth noting is that the 2024/2025 Integrated Report highlights a period of progress for Eswatini’s financial system, marked by the successful partial roll-out of the R4 billion Protea Bond Programme and improvements in key economic indicators.

As of March 2025, the Government has raised R1.186 billion under the JSE-listed bond, strengthening Eswatini’s ability to finance its budget and projects through regional capital markets.