The Central Bank of Eswatini (CBE) has granted a provisional banking licence to SBS Bank Eswatini (SBSBE), paving the way for the Swaziland Building Society (SBS) to transition into a medium-sized commercial bank.
The move marks a significant milestone for Eswatini’s oldest and longest-standing homegrown financial institution, which has operated as a mutual building society since 1962. The transformation will enable SBS to broaden its services beyond the traditional building society model and play a greater role in the nation’s banking sector.
According to the CBE Governor, Dr. Phil Mnisi, the decision follows a comprehensive review process conducted in line with the country’s banking regulatory framework.
SBSBE submitted its application to the Central Bank on 30 June 2025, after which a detailed evaluation confirmed that the institution met all necessary prudential and regulatory standards to qualify for a provisional licence.
“The Central Bank congratulates SBS Bank Eswatini on this milestone and looks forward to the value they will bring to the nation’s financial sector and broader economy,” said Dr. Mnisi in a statement.
The CBE outlined several key considerations that informed its decision to grant the provisional licence:
• Validity of Documents: All submitted documents met the requirements set out in the CBE Policy on Licensing of Banking and Financial Institutions.
• Financial Strength and History: SBSBE inherits SBS’s strong legacy of a trusted brand, a loyal customer base, and deep market knowledge, supported by sustained favourable financial performance over the years. The institution was therefore deemed financially healthy and experienced enough to support its proposed banking operations.
• Management Competence: The proposed board and senior management team comprise individuals with extensive experience in banking, finance, legal, compliance, marketing, human resources, operations, and information technology, offering a well-balanced and diverse skills mix.
• Capital Adequacy: The applicant demonstrated strong capital ratios, well above the statutory minimum and compliant with Section 20 of the Financial Institutions Act (FIA).
• Community Needs: SBSBE’s proposal included a thorough analysis of the credit needs of various socio-economic groups. The bank aims to promote inclusive financial access across low, medium, and high-income segments, addressing barriers that limit access to formal credit.
• Earnings Prospects: The CBE found SBSBE’s financial projections realistic and aligned with its transformation strategy, presenting a sound business outlook.
• Public Interest: The bank’s focus on product diversity and financial inclusion aligns with Eswatini’s national development goals, supporting efforts to broaden access to formal financial services.
The Central Bank emphasized that it will continue to work closely with SBS Bank Eswatini and other stakeholders to ensure that all regulatory and legal requirements are met before a full banking licence is issued. Additional announcements will be made once the bank is ready to commence full operations.
SBSBE becomes the second bank to receive a banking licence from the CBE in 2025, following Letshego Eswatini Bank (LEB). The CBE also provided a status update on LEB, which received its provisional licence on 13 June 2025 to operate as a digital bank. The regulator noted that Letshego’s progress in meeting the conditions tied to its provisional licence remains on track, with a strong focus on compliance and financial soundness.
The Central Bank stated that it continues to monitor LEB’s performance to ensure a smooth transition into full banking operations, without disrupting the stability of the financial sector.