By Sizwe Dlamini
The Swaziland Building Society (SBS) is set to undergo a significant transformation, with plans to evolve into a fully-fledged bank by April 2025.
This announcement was made by SBS Managing Director, Mbali Sibanyoni, during a media briefing held at the Open House Hotel in Mbabane. Sibanyoni reassured the Society’s over 11,000 members that their investments are secure despite the transition from a Society to a Commercial Bank.
“The process of transitioning into a fully-fledged bank is a move that began in 2012, after a study we carried out confirmed that we were ready for the change. Several processes have had to take place, which is why it has taken this long,” Sibanyoni stated.
She emphasized that the transformation is driven by that being a Society limits the products and services that they can offer to the market.
“The space for building societies has not ended; it’s just that we have outgrown the sector and to offer more services to our customers we need to be registered as a bank. It is important to clarify that our members’ investments are safe, and no investments will be lost during this important transition,” she assured.
She also allayed fears of possible job losses due to the conversion process.
“We would like to take this opportunity to announce that the conversion process will see no job losses as the transition aims to be as seamless as possible aligning with the Building Societies Act in Eswatini. Employees are protected by the Act.”
Sibanyoni explained that the registration process is complex and involves meeting various financial regulatory requirements.
“We are hopeful that we will meet all the requirements to be registered as a bank by April 2025. This involves a multitude of processes and mandates that we must align with, followed by internal and external audits. In the event we do not launch in our next financial year which is April 2025, then we are certain that we will launch during 2025.” she said.
The bank will be named SBS Bank Eswatini, reflecting the institution’s longstanding reputation while incorporating the country’s new name. It is important to clarify that the SBS is not an acronym in the proposed new name but a standalone word.
“We intend to keep the name close to the original, Swaziland Building Society (SBS), to avoid confusing the public as the SBS acronym has been in use for about 62 years. The name will be SBS Bank Eswatini,” she said.
Sibanyoni highlighted the fundamental differences between building societies and banks, noting that while banks are typically for-profit entities owned by shareholders, building societies are mutual organizations owned by their members.
“Our focus is to ensure that the transition to a bank benefits both our members and future shareholders. We want to ensure this transformation not only supports our growth but also stays true to our founding principles of member-focused service,” she concluded.