Times Of Swaziland: SMALL-SCALE LOAN GUARANTEE SCHEME SURPASSES TARGET

SMALL-SCALE LOAN GUARANTEE SCHEME SURPASSES TARGET
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Nhlanganiso Mkhonta on 29/08/2024 07:58:00


MBABANE – The Small-Scale Enterprise Loan Guarantee Scheme surpassed its
leverage ratio target of 3.0 times, as it increased from 2.41 times in March
2023, to 3.24 times at the end of March 2024.The Governor of the Central Bank of
 Eswatini (CBE), Dr Phil Mnisi, said this indicated an increase of 34.44 per
cent during the year. He said the current challenge within the Development
Finance Schemes is the stagnancy of the Export Credit Guarantee Scheme (ECGS).
Strategic
He said in this regard, various strategic initiatives were being undertaken by
the bank in trying to enhance uptake of the ECGS and one of them was the
‘Developing of Risk Instruments to Support Effective Lending to Specific Key
Sectors.’Dr Mnisi said in advancing its financial inclusion agenda in
partnership and collaboration with various stakeholders, the CBE ensures that it
continues implementing a sound regulatory framework, which allows innovation and
expansion of outreach programmes while providing mechanisms for managing risks
associated with such activities.
Ensuring
He said the programmes include adequate financial consumer protection and market
conduct, as well as financial policies that are not gender neutral among others,
while ensuring that the right balance between financial inclusion objectives and
financial stability is maintained. He added that to enhance financial inclusion,
data availability is crucial in order to facilitate the design and rollout of
quality financial products and services to the beneficiaries. He said thus, CBE,
in collaboration with other stakeholders, advocates and implements data-driven
and evidence-based policy formulation; in particular supporting women and youth
financial inclusion, forcibly displaced people (FDP), enhancing digital finance
infrastructure in fostering inclusion, Financial literacy to deepen financial
inclusion, inclusive green finance within Eswatini - in line with the ongoing
Greening the CBE project, among others.
Meanwhile, Eswatini is tackling climate change on both national and sub-national
levels.
Plan
Dr Mnisi said government had a long-term plan (Climate Action Vision 2050) to
address climate impacts, while the Central Bank, in partnership with the UNDP,
has launched ‘The Greening of the Central Bank of Eswatini Project’ to make
the financial system more environmentally friendly. He said this project will
focus on managing climate risks for the Bank, creating a green finance system
and exploring options like green bonds and carbon credit, formulating regulatory
framework underpinned by environmental, social and governance (ESG) principles
for sustainable banking practice, among others.