BY MBONO MDLULI
LOBAMBA – The Eswatini Government has been urged to prioritise support for Eswatini Bank, the sole commercial bank owned by the nation.
This plea was made by Hhukwini Member of Parliament (MP), Alec Lushaba. Speaking during the 2024/25 annual performance debate for the Ministry of Finance on 25 February 2025, which was held at the Senate, Lushaba expressed concern over the perceived neglect of the bank by the Government.
Lushaba stated that the Government treats Eswatini Bank “like a stepchild,” despite it being a fully state-owned entity. He emphasised that the administration frequently partnered with other banks for various projects, sidelining Eswatini Bank. He referenced the Government’s current vehicle procurement project, which, he claimed, had been undertaken in collaboration with a different financial institution, bypassing Eswatini Bank altogether.
Lushaba argued that such practices should not be allowed to continue. The MP also raised concerns about the Eswatini Finance Development Corporation (FINCORP), another institution established to facilitate access to finance for Emaswati. He questioned whether the Government had taken the time to scrutinise FINCORP’s operations to ensure it still serves its intended mandate.
Lushaba alleged that the institution had reportedly ceased issuing loans to citizens due to challenges with loan repayments. He called for increased support for FINCORP, stressing that it plays a vital role in enabling Emaswati to initiate income-generating projects. He further argued that institutions such as Eswatini Bank and FINCORP offer more accessible funding options compared to other financial entities, which often impose stringent requirements.
Lushaba criticised the tendency of some international banks to view Eswatini as a high-risk market, noting that despite this, the Government continues to favour these institutions over its own. The MP urged the Government to explore sustainable avenues for generating revenue, warning that current methods may soon become insufficient.
He praised the recently announced Sovereign Wealth Fund, which he described as a positive step towards leveraging institutions previously overlooked by the state. Lushaba expressed his belief that institutions like FINCORP and Eswatini Bank could be instrumental in helping the country achieve its developmental goals.
His remarks followed a statement made by Eswatini Bank Managing Director (MD) Nozizwe Mulela about four weeks earlier. During a meeting between Prime Minister Russell Mmiso Dlamini and CEOs and board members of Eswatini’s parastatals, held at Happy Valley Hotel in Ezulwini on 30 January 2025, Mulela had appealed to Emaswati to support the bank by banking with them.
Mulela’s appeal came after a presentation by Dr Muzi Dube, the Prime Minister’s Technical Advisor, on the Government’s Programme of Action, which requires E230 billion to implement. She had highlighted that Eswatini Bank could play a significant role in executing the programme, provided that Emaswati actively support the institution.
The MD reminded attendees that Eswatini Bank was the only financial institution wholly owned by Emaswati, stressing that it was the responsibility of the nation to cherish and support it. She further explained that banking operated as a cycle that required collaboration between service providers and clients for mutual benefit.
Lushaba’s sentiments and Mulela’s appeal collectively underscore the need for greater support and investment in Eswatini’s homegrown institutions to foster national economic growth and development.
