EARLY SUPPORT EMERGES FOR SBS CONVERSION TO BANK

MBABANE – A considerable number of Swaziland Building Society (SBS) members have already indicated their intention to support the proposed conversion of the Society into a commercial bank.
In a survey conducted during an SBS customer outreach session in Pigg’s Peak, which focused on educating the members, customers and stakeholders about the conversion process, many attendees expressed confidence in the move. Mandla Gule, a member from the Nkomazi River Valley near Maguga, voiced his staunch support for the change. “I’m thrilled with this development. It is long overdue for the Society to evolve into a bank. Currently, we face limitations compared to those with accounts in commercial banks. For example, electronic money transfers between SBS and South Africa result in hefty bank charges,” he said.

Impact

Gule, who has been a customer since 1985 and acquired permanent shares in 1995, also emphasised the positive impact SBS had on his life, including funding his children’s education and building his homestead.The outreach event allowed members to ask questions and gain clarity on the conversion process. “We are grateful that SBS is taking the time to engage and educate us. This gives us confidence that the conversion will succeed,” Gule added. David Magongo, former Clerk to Parliament and a longstanding member residing in northern Hhohho, echoed similar sentiments. “I have been with SBS for over 15 years, and I believe it is time for progress. As a bank, SBS will be able to offer the same services as commercial banks, which it could not provide before. This is a significant step forward,” said Magongo.

Goodwill Simelane, a teacher from Mpofu who runs businesses in Buhleni, also supports the conversion. “This is a great move that will offer many benefits. I have been a member since 1992 and have used sub-shares to save and invest. I have built flats in Pigg’s Peak, thanks to my savings and loans from the Teachers Association. I will definitely vote in favour of the conversion on November 15,” he stated. Philisiwe Mncina, a relatively- new member from Luhlangotsini, expressed her satisfaction with the transparency of the process. “What I appreciate most is that we are being directly informed by SBS staff, not through rumours. They have given us a clear road map and assured us that our money will remain safe. This conversion will bring positive changes like the ability to secure loans for big purchases such as a tractor,” she said.The early signs indicate strong support for SBS transition to a commercial bank, with many members expressing enthusiasm and confidence in the move.

Attended

This sentiment was echoed by SBS customers who attended the outreach session at Evelyn Baring High School in Nhlangano on the same day, where they unanimously appreciated the efforts of the SBS team led by General Manager Leonard Dlamini. The team took the time to educate the attendees about the conversion process, addressing nearly 30 questions during the Q&A session. The Nhlangano meeting, one of the most attended so far, drew both young and old clients from across the Shiselweni Region. During the session, one customer requested a detailed explanation of the five forms included in the conversion statement, while another inquired about the benefits of acquiring ordinary shares.

Owners

Dlamini clarified that ordinary shareholders would automatically become owners of the business with share value growing based on company performance. He also noted that shareholders will be entitled to dividends, which will be payable annually depending on the performance of the bank. Additionally, Dlamini emphasised that Permanent  Shares were no longer available as of August 16, to prevent a hostile takeover by late entrants. He reassured the audience that there is no minimum balance required for ordinary shares and that permanent shareholders are eligible to acquire shares using their existing investments.

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