By Phiwa Sikhondze
Stanlib Eswatini has called on investors to set clear investment goals and maintain a long-term outlook to ensure that they meet their financial goals.
This was emphasized during a recent podcast hosted by the Financial Services Regulatory Authority’s Market Conduct Department, as part of their 2024 World Investor Week programme.
Speaking during the discussion, Muziwanele Manyathi, Head of Business Development at Stanlib Eswatini, stressed the importance of having a well-defined investment plan to navigate the cyclical nature of the markets.
“A resilient investor has a clear investment goal and is prepared to weather both market highs and lows. Investments have time horizons, and sticking to that plan is crucial, even when market conditions are challenging,” Manyathi said.
He advised retail investors to adopt a patient approach to investments, emphasizing that short-term volatility should not deter them from their long-term goals.
“Resilience requires you to hold on through periods of market downturns. It’s not a matter of in today, out tomorrow. Investors need to understand that the real rewards come with time,” he added.
Zama Dlamini from FSRA’s Market Conduct Department highlighted the need for investors to work with licensed FSPs to safeguard their investments. He noted that the department’s role includes preventing abusive practices and ensuring fair competition in the non-bank financial sector.
“Investors must ensure that they engage with regulated and licensed entities to avoid falling prey to scams,” said Dlamini.
During the podcast, Manyathi also commented on the current market conditions in Eswatini, which he described as favorable for investors. He pointed out the recent reduction of the Central Bank’s discount rate and the Eswatini government’s bond listing on the Johannesburg Stock Exchange (JSE) as positive developments that signal a robust financial framework.
“These trends show that we have a sound structure in place, and they create opportunities for both institutional and retail investors,” he said.
Another key theme discussed was the need for improved financial literacy in Eswatini. Both FSRA and Stanlib Eswatini emphasized that educating the public is vital for fostering investor resilience.
Manyathi underscored Stanlib’s commitment to improving financial literacy through partnerships with human resource departments and civil service training programs.
“It’s important to start financial education early, whether it’s through workplace initiatives or other training programs. The more people understand budgeting, saving, and investing, the better they can secure their financial future,” he noted.
In the face of increasing investment scams, Manyathi warned investors to be vigilant and ensure they are dealing with credible FSPs. He advised the public to do thorough research, seek advice from qualified professionals, and avoid offers that seem too good to be true.
“Scams are everywhere, but as an investor, you need to stay informed and protect yourself by dealing only with licensed and regulated entities,” he concluded.