The Eswatini Stock Exchange (ESE) hosted a capacity-building workshop in response to growing interest from companies seeking to list Exchange-Traded Funds (ETFs). The training equipped regulators, issuers, and investors with insights into how ETFs work and their potential to expand investment opportunities in Eswatini.
Held last week Friday at the Happy Valley Hotel, the capacity-building workshop brought together regulators, potential issuers, investors, and market partners to deepen their understanding of ETFs, innovative financial instruments that are already driving investment growth globally.
Welcoming participants, ESE Chairperson Dr. Melvin Khomo framed the initiative as a crucial milestone for modernizing Eswatini’s capital markets.
“This workshop lays the groundwork for a regionally competitive exchange,” he said.
ETFs, which trade like ordinary shares, are typically structured as index-tracking Collective Investment Schemes. They give investors access to a basket of assets, such as equities, bonds, or commodities, through a single trade. For retail investors, they open the door to diversification that was previously out of reach, while institutions gain sophisticated tools for building efficient portfolios.
Unlike Exchange-Traded Notes (ETNs), which carry issuer credit risk, ETFs are fully backed by assets. They also stand apart from traditional unit trusts thanks to exchange oversight, electronic settlement, and live net asset value (NAV)-based pricing that ensures liquidity throughout the trading day.
The workshop also addressed operational models under consideration for Eswatini, covering settlement mechanics, liquidity-building strategies, and regulatory safeguards designed to protect investors.
Dr. Khomo highlighted that broader institutional reforms are laying the foundation for ETFs to succeed. The ESE has recently aligned itself with the African Securities Exchanges Association (ASEA) harmonized framework, enabling cross-listings and regional collaboration.
“This milestone positions Eswatini strongly for cross-listings and regional cooperation, enhancing the kingdom’s visibility as an investment destination,” he said.
He further noted that the exchange’s demutualization efforts, in collaboration with the Financial Services Regulatory Authority (FSRA), will be transformative.
“This will unlock commercial agility, strategic partnerships, and capital for reinvestment into market infrastructure, enabling technology upgrades and broader participation essential for ETF success,” Dr. Khomo explained.
Concluding the workshop, he called on stakeholders to embrace the opportunity with vision and urgency.
“Let this workshop ignite product expansion, regional cooperation, and investor education. We’re not merely introducing an instrument but laying foundations for a modern, diversified exchange that attracts both domestic and international capital,” he said.
Khomo also reaffirmed the board’s commitment to driving reforms that promote market depth, investor confidence, and long-term prosperity.
“The ESE’s structural evolution will position Eswatini as a regionally competitive player punching above its weight,” he concluded..