BY PHUMELELE GAMEDZE
MBABANE – Eswatini has doubled its financial compliance score through reforms since 2022, a development economist Sanele Sibiya says could strengthen investor confidence, attract genuine capital and create more opportunities for emaSwati.
Although financial compliance may sound like a technical issue, Sibiya said its impact can be felt across the economy, particularly through investment, business growth and job creation.
“I mean, times then no matter because it improves the image of the Kingdom in the eyes of the global community,” Sibiya said.
He explained that stronger financial systems make it easier to trace money entering and leaving the country, understand its purpose and account for it within Eswatini’s balance of payments.
“Now that makes it easy to check where the money is going, where it is for. And it also makes it easy to account in terms of our balance of payments account,” he said.
Sibiya said the reforms could also help Eswatini attract investors who bring money to establish businesses, employ people and contribute to economic activity.
“It does help a lot in terms of making sure that we are an investor-friendly destination and we are a destination that attracts true capital that comes into the Kingdom to actually just end up doing actual work,” he said.
He said stronger financial systems could also help protect the economy from investors who may seek to exploit weaknesses in the system without contributing meaningfully to the country.
“You find that you have what you call a mafia economy where you have a very small economy that is functioning, but there’s a lot of money that is moving around and being financed right through and through,” he said.
Beyond attracting investment, Sibiya said compliance is important in building trust with international financial institutions, which need confidence that a country’s institutions can properly manage and account for funds.
“It is also the fact that your institutions can handle money and account for money,” he said.
He said properly managed investment funds can generate income within the country and support economic growth.
“When we utilise investment funds internally, then they’re able to actually generate that income which we need as a country,” he said.
However, Sibiya acknowledged that compliance checks can sometimes cause delays for businesses receiving international payments.
“If I’m receiving 1 million right now and I’m now being delayed for a couple more hours, that’s a million that I’m not able to stop. That’s a million that I’m forgoing,” he said.
He said banks and the Central Bank of Eswatini are working to make the process more efficient, adding that businesses can help avoid unnecessary delays by providing their banks with the required information beforehand.
“It’s not additional red tape,” he said. “It’s simply saying, ‘Let us see why you’re receiving the money and can we just confirm that?’”
“The moment you know that you’re expecting that money, just make sure your bank has all the information and it’s going to be seamless to avoid any further delays,” Sibiya said.
Looking ahead, Sibiya said continued improvements would demonstrate that Eswatini is serious about strengthening its financial systems and meeting international standards.
“For me, what it would mean to the investors and the international community is number one: we are a Kingdom in transformation,” he said.
“It will show that we are willing to align and change and fall in line with the best standards.”
He said this could help the country attract the right investment and financial support for development.
“Now that ensures that we’re able to attract the right funding for our investment and also in terms of the right support, fiscal support for government,” he said.
For emaSwati, Sibiya said the value of these reforms ultimately lies in what stronger financial systems can unlock productive investment, growing businesses, employment and increased economic activity.
#Eswatini #FinancialReforms #Investment #EconomicGrowth
(Courtesy Pic)
