The Minister of Finance, Neal Rijkenberg, has announced that the government is working on four priority areas that will strengthen Eswatini’s capital markets industry.
Speaking at a high-level strategic breakfast roundtable at the Hilton Garden Inn last week, the Minister said that while Eswatini has made commendable strides in developing its capital markets industry, significant gaps remain that hinder full participation and growth.
“We have made progress, but challenges include a lack of liquidity, limited investment products, and inadequate market infrastructure, which restricts participation,” Rijkenberg stated.”
“Government recognises these challenges and is committed to addressing them through targeted investment in key infrastructure.”
Rijkenberg emphasised that the Eswatini Capital Markets Association (ECMA) will play a central role in driving the sector forward, catalyzing reform and market development.
“Government is fully committed to supporting ECMA by providing the necessary resources and policies to ensure its success,” he said. “We will work closely with ECMA to implement strategic initiatives that will bolster the infrastructure and capabilities of our capital markets.”
The Minister unveiled four priority areas for immediate government action:
Technological Enhancements
• Investment in electronic trading platforms to improve transaction efficiency and accessibility.
• Development of user-friendly systems to encourage participation from both retail and institutional investors.
Regulatory Framework Improvements
• Strengthening the legal and regulatory environment to enhance investor protection and market transparency.
• Establishing clear guidelines for the introduction and management of new investment products.
Market Education and Awareness
• Launching investor education initiatives, including workshops and training for individuals and businesses.
• Promoting financial literacy nationwide to empower citizens to participate confidently in capital markets.
Public-Private Partnerships (PPPs)
• Encouraging collaboration between the government and the private sector to pool resources and expertise.
• Engaging with both local and international stakeholders to align with global best practices and attract foreign investment.
Rijkenberg stated that the Government expects the implementation of these reforms to significantly enhance market liquidity and investor participation, which in turn will spur broader economic benefits.
“By investing in these key areas, we expect to enhance market liquidity, attract both local and foreign investment, and ultimately contribute to sustainable economic growth,” he said. “A well-developed capital market will lead to more job creation, improved standards of living, and a stronger economy overall.”
The Finance Minister concluded by calling on all stakeholders: business leaders, financial institutions, and international partners, to collaborate with the Government in transforming the country’s capital markets into a thriving, inclusive ecosystem.