Central Bank of Eswatini: Enhancing SZ Financial Inclusion under National Strategy II

• The Central Bank of Eswatini has launched the National Financial Inclusion Strategy II (2023-2028) to enhance financial inclusion in the country.
• Financial inclusion is defined as access to, and effective use of, affordable and responsible financial products and services.
• Despite significant progress, 87% of citizens still face barriers to accessing financial services.
• The Central Bank's policy objectives include inclusion, stability, integrity, and consumer protection (I-SIP).
• Internationally, the Alliance for Financial Inclusion (AFI) is supporting the Central Bank in its financial inclusion journey.

Enhancing financial inclusion has proven to lead to the development of a stable, resilient, and competitive financial sector and contribute to broad-based wealth creation, economic growth, and improved standards of living of people across socioeconomic and demographic indicators.

The Central Bank of Eswatini has been actively working to enhance financial inclusion in the country, as outlined in the National Financial Inclusion Strategy II (2023-2028). This strategy defines financial inclusion as 'that individuals and businesses have access to, and effectively use financial products and services that meet their needs, are affordable, and are delivered in a responsible and sustainable way.' Despite significant progress, with 87% of citizens having access to financial services according to the Finscope Consumer Survey (2018), there remain numerous barriers to financial inclusion. The Central Bank is addressing these challenges through its policy objectives of inclusion, stability, integrity, and consumer protection (I-SIP).

The Central Bank's efforts to enhance financial inclusion are guided by the National Financial Inclusion Strategy II (2023-2028), which recognizes the importance of financial markets in creating a sustainable future. The strategy emphasizes the need for diverse financial service providers to offer quality financial services, including credit, savings, insurance, payments, and remittances. The Central Bank's policy objectives, including inclusion, stability, integrity, and consumer protection (I-SIP), are designed to support the achievement of these goals. Internationally, the Alliance for Financial Inclusion (AFI) is providing support to the Central Bank in its financial inclusion journey.

Enhancing financial inclusion has significant benefits for Eswatini's economy and society. By improving access to financial services, households can access basic services and opportunities, while micro small medium enterprises (MSMEs) and farmers can become productive and grow. This, in turn, contributes to broad-based wealth creation, economic growth, and improved standards of living. The Central Bank's efforts to enhance financial inclusion are critical to achieving the Sustainable Development Goals (SDGs), which recognize financial inclusion as a core enabler for development. As such, lawyers and compliance officers should closely monitor the Central Bank's ongoing efforts to enhance financial inclusion, as they may impact their clients' access to financial products and services in Eswatini.

Lawyers and compliance officers should watch for the Central Bank of Eswatini's ongoing efforts to enhance financial inclusion, which may impact their clients' access to financial products and services in SZ.

Source: Original reporting via Central Bank of Eswatini