The Central Bank of Eswatini (CBE) has extended its technical support to EswatiniBank by 12 months to help implement the lender's turnaround plan. This extension follows the appointment of consultants by the CBE in April to provide technical support under Section 42(b) of the Financial Institutions Act, 2005. The initial intervention was set to run for nine months until December.
CBE Governor Dr. Phil Mnisi stated that the consultants' work led to the development of a turnaround plan for EswatiniBank, prompting the regulator to extend its support for implementation. As part of the extended intervention, CBE Chief Operations Officer Mfanufikile Dlamini will be seconded to EswatiniBank to provide consultancy services and support the bank's board and management.
Mfanufikile Dlamini's secondment will start on October 1 and run for up to 12 months. Dr. Mnisi mentioned that Dlamini would undergo a three-month handover period with the current consultants before taking over the ongoing support role. This approach ensures continuity in implementing the turnaround plan while utilizing one of the CBE's senior executives.
The intervention aims to strengthen EswatiniBank and support its long-term sustainability. The CBE noted that the bank continues to fulfill its mandate as a development-oriented financial institution, particularly in supporting job creation, economic stability, and sustainable economic growth.
The Central Bank stated that the extended support is intended to ensure EswatiniBank remains a strong and resilient institution. Dr. Mnisi acknowledged that while continued engagement of the current EswatiniBank consultants is under consideration, the high costs of this approach are recognized.
EswatiniBank's turnaround plan, developed with the help of consultants, is crucial for its recovery and growth. The bank's stability is vital for the country's economy, given its role in supporting key sectors. The CBE's involvement underscores its commitment to ensuring the bank's resilience.
The CBE's support for EswatiniBank reflects its broader mandate of maintaining financial stability in Eswatini. By aiding the bank's turnaround, the CBE aims to promote a stable financial environment conducive to economic growth and development. The extension of technical support is a strategic move to safeguard the bank's operations and its contribution to the national economy.
Key points
- The Central Bank of Eswatini extends technical support to EswatiniBank for 12 months.
- CBE will second its Chief Operations Officer to EswatiniBank to implement the turnaround plan.
- The intervention aims to strengthen EswatiniBank for long-term sustainability.
