By Phiwa Sikhondze
In an era where digital transformation is reshaping economies, Eswatini stands out as a beacon of progress in financial inclusion, largely due to the strategic implementation of digital financial services.
The Minister of Finance, Neal Rijkenburg, in his remarks at the Alliance for Financial Inclusion (AFI) Working Groups Meetings, highlighted the significant strides made by the country.
He praised the Central Bank of Eswatini (CBE) and the Financial Services Regulatory Authority (FSRA) for the role they have played in creating a level ground for the adoption of technology into the financial sector.
“The Central Bank of Eswatini and the FSRA have been instrumental in creating an enabling environment for financial institutions to reach underserved populations,” Minister Rijkenburg said.
“In March 2018, the CBE issued the Mobile Money Services Providers Guidelines to improve operations of mobile money services,” he added.
The Minister proudly noted the substantial increase in financial inclusion, showcasing the country’s impressive 87% financial inclusion rate. The adoption of digital financial services has been instrumental in expanding financial inclusion in Eswatini. Mobile money services and digital payment platforms have facilitated greater access to banking services, especially in remote areas. The result is a significant increase in financial inclusion from 44% in 2011 to 87% in 2018, as indicated by the Finscope Survey.
However, Minister Rijkenburg also pointed out that access alone is not sufficient. “Our focus as we move on this journey is to ensure that Emaswati is using this access for more productive reasons and that they use the financial system to improve their livelihoods and those of their households,” he said.
Eswatini has also taken proactive steps in financial education, developing a National Financial Consumer Education Strategy. Efforts have been made to enhance financial literacy and education among the population to ensure that individuals are empowered to make informed financial decisions.
Supporting microfinance institutions and providing financing options for micro, small, and medium-sized enterprises (MSMEs) have been integral to Eswatini’s approach. “Access to credit and financial services for entrepreneurs and MSMEs, though still a challenge, has helped stimulate economic growth and empower communities,” the Minister remarked.