Eswatini embarks on journey to establish Cooperative Bank
Ministry of Commerce, Industry and Trade PS Melusi Masuku seated with the DGRV officials during the workshop.
By Delisa Magagula
Eswatini has taken a significant step toward strengthening its cooperative sector with the launch of the first roundtable engagement for the establishment of the Eswatini Cooperative Bank.
The initiative aims to create a financial institution owned and controlled by the nation’s cooperative movement, providing a central hub for financial services, professional capacity building, and digital infrastructure.
The roundtable, hosted by the Ministry of Commerce, Industry and Trade, brought together senior government officials, cooperative leaders, regulators, and international partners, including representatives from Germany’s Cooperative and Raiffeisen Confederation (DGVR) and Moshi Cooperative University.
The gathering marks what officials describe as a strategic milestone in the modern history of Eswatini’s cooperative movement, which dates back to 1931.
Speaking at the event, Permanent Secretary Melusi Masuku highlighted the sector’s enduring values of solidarity, self-help, and community progress.
“Our cooperatives have long provided accessible financial services to communities where commercial banks could not reach.
The cooperative spirit has mobilised savings, extended credit, and built trust across generations,” he said.
Masuku described the proposed cooperative bank as a central financial engine that will empower cooperatives to be more competitive and resilient in a rapidly changing economic landscape.
The institution is expected to provide liquidity support, wholesale banking services, and access to sophisticated financial instruments, including sustainable and development finance.
“This is not simply a financial initiative. It is an intentional strategy for empowerment, inclusion, and national development,” Masuku said.
The Commissioner of Cooperative Development, Russell Nxumalo, confirmed that the initiative is at its inception stage.
“We are currently conducting stakeholder mapping and assessments and will be holding workshops with relevant stakeholders this month,” Nxumalo said.
He emphasised that the bank’s establishment would comply fully with national regulations and the oversight of the Central Bank of Eswatini.
Eswatini’s cooperative movement is currently thriving, boasting over 1,430 registered cooperatives with collective assets exceeding E3.5 billion.
Savings and Credit Co-operative Societies (SACCOS) alone provide access to over E2.6 billion in savings solutions and have issued over E3 billion in loans, supporting education, housing, entrepreneurship, and financial inclusion.
International partners are playing a pivotal role in shaping the project. DGVR the German Cooperative and Raiffeisen Confederation reiterated their commitment to sharing global best practices and expertise from Germany’s cooperative banking systems, which encompass more than 700 local banks.
“Our role is to accompany, share, and adapt international best practices to Eswatini’s unique context. The goal is a cooperative bank that is professionally managed, digitally enabled, and governed by the institutions it serves,” said Fernando Espinosa during his presentation.
The government plans follow-up engagements with additional international partners in early November to further refine the strategic framework for the bank.
Officials emphasise that the success of the initiative will require collaboration across government, the cooperative sector, regulators, and development partners.
With the cooperative bank envisioned as a three-year project, stakeholders see it as a transformative step toward enhancing financial inclusion, supporting micro, small, and medium enterprises (MSMEs), and contributing to national economic development.
