MBABANE – The Teachers’ Savings and Credit Cooperative (SACCO), owned by 12 633 educators, has amassed assets of E800 million and is advancing plans to establish a bank as it targets E1 billion.
Backed by a loan book of E597 million, strong member returns of 10 per cent on savings and a five per cent dividend and a new mobile app that has expanded rural access, the proposed bank would broaden services and mobilise funding beyond the membership.
The teachers hold their investments under the Swaziland National Association of Teachers’ (SNAT) Savings and Credit Cooperative Society (SACCO), a financial institution founded in 1986.
What began nearly four decades ago as a modest mutual savings scheme has transformed into a formidable co-operative with national reach and growing influence in the financial sector.
Now, SACCO leaders are aiming to expand the fund to E1 billion within the next year, aligning with His Majesty King Mswati III’s call during the recent Eswatini International Trade Fair for the institution to broaden its investment horizons and strengthen local participation in the financial sector.
This ambitious plan was confirmed by Boyce Dlamini, the Chief Executive Officer of SACCO, who runs the co-operative alongside 42 employees.
These employees report to the Board, chaired by Gugu Mabuza, which sets strategic direction and ensures compliance with co-operative principles.
SACCO is wholly-owned by its members, numbering 12 633 teachers employed by the Teaching Service Commission.
Each member holds an equal stake, having purchased shares worth up to E5 400.
Unlike traditional banks, SACCO’s structure ensures that ownership and control rest squarely in the hands of teachers themselves, giving them a direct say in governance and investment decisions.
The society will celebrate its 40th anniversary next year.
Of the current E800 million in assets, the bulk lies in the loan book, valued at E597 million.
This capital circulates within the membership, providing teachers with access to affordable credit facilities.
SACCO has also made strategic external investments, including a one per cent stake in First National Bank worth E20 million and 20 per cent holding in Orchard Insurance.
Additionally, the co-operative has placed considerable resources with money market fund managers, diversifying income streams while maintaining liquidity.
Members benefit directly through annual interest payments. This year alone, SACCO delivered 10 per cent interest on members’ savings and an additional five per cent dividend on shares – a remarkable performance when compared to returns offered by traditional commercial banks.
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Initiative to turn into bank still at infancy stage
MANZINI – Lot Dlamini, Secretary General of the Swaziland National Association of Teachers (SNAT), explained that the initiative to turn the society into a bank was still at infancy stage.
However, he said the foundation is strong, given the over E800 million in assets and more than E600 million in cash currently circulating among members through the SNAT Savings and Credit Co-operative Society (SACCO).
Boyce Dlamini, Chief Executive Officer of SNAT SACCO, said the idea of forming a bank originated from members themselves.
“There have been suggestions by members to establish a bank. Such a decision, however, would have to be sanctioned by the membership,” he stated.
He further explained that any such resolution would need to be endorsed at an annual general meeting, after which the Board and management would chart the way forward.
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Central Bank ready for another bank
MBABANE – Mandla Luphondvo, Head of Strategy and Communication at the Central Bank of Eswatini (CBE), said institutions interested in opening a bank should consult the CBE for guidance on core requirements or visit the Bank’s website.
“The country remains open to niche banks—those serving specific customer segments or industries,” he said. In June 2025, for instance, the Central Bank issued a provisional banking licence, highlighting that such opportunities are available following rigorous assessment and evaluation.
The licence was granted to Letshego Eswatini Bank (LEB), currently operating as Letshego Financial Services Eswatini. LEB received a provisional licence to operate as a digital bank within the kingdom. The licence is valid for a period not exceeding 12 months, during which the bank-in-organisation must prepare to become fully operational.
The CBE is tasked with licensing, supervising and regulating banks to ensure they serve not only profit-making objectives but also the nation’s broader economic interests.
This is particularly important given that the impact of a bank’s collapse is far greater than that of an ordinary company, according to a statement released by the bank.
*Full article available in our publication.
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