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CBE prioritises broader digital ecosystem

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The bank’s central priority is now creating real economic reasons for people to keep money in their digital wallets, so that the long-term evolution of savings, credit and digital financial services can grow on a stronger foundation. (Courtesy pics)
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MBABANE – The CBE says its next phase of digital payments development will focus on expanding person-to-government, government-to-person and merchant-level digital services to strengthen mobile wallet usage.

The Central Bank of Eswatini (CBE) has outlined a decisive shift towards building a much broader and more integrated digital payments ecosystem – one that ensures citizens can not only transfer money, but also use their digital wallets to pay government, receive government disbursements, make everyday purchases and participate in online commerce.

This was revealed by Sabelo Gama, Deputy Director of Operations for Payments at the CBE, in an interview with Kenn Abuya of TechCabal, a digital media publication under Big Cabal Media.

The publication was among the international media houses present in Eswatini last week for the launch of the State of Inclusive Instant Payment Systems (SIIPS) Report.

Gama said the bank’s central priority is now creating real economic reasons for people to keep money in their digital wallets, so that the long-term evolution of savings, credit and digital financial services can grow on a stronger foundation.

Gama noted that Eswatini’s financial inclusion rate had surged to about 87 per cent, compared to just over 50 per cent a decade ago.

The rapid increase, he said, was driven overwhelmingly by mobile money services, which had transformed access for the unbanked and spurred banks to launch their own digital wallets.

“The market now has a mix of mobile money operators and bank-led products,” he said. But with this growth comes a need to balance innovation with consumer protection.

Gama explained that interoperability – allowing funds to move freely between providers – has been central to the bank’s regulatory approach.

To ensure fairness, agents are not allowed to sign exclusive agreements with any one operator, preserving competition.

*…

… opening door for new fintech entrants

MBABANE – Sabelo Gama, Deputy Director of Operations for Payments at the CBE detailed the process for onboarding new mobile money or fintech providers.

This process is anchored in the National Payment Systems Act of 2023.

Applicants must submit documentation on ownership, governance, their business model and operational plans.

The bank’s internal units then conduct pricing reviews, consumer protection checks, AML assessments and operational risk evaluations.

*…

Why wallet balances don’t stay digital

MBABANE – Despite the widespread use of mobile money, many citizens still use wallets primarily for peer-to-peer (P2P) transfers before cashing out.

The Deputy Director of Operations for Payments at the central Sabelo Gama, said the biggest underlying issue is the limited number of services available inside digital wallets.

“People send money, then cash out, because most real transactions still happen in cash,” he said.

This behaviour undermines digital savings growth and slows the roll-out of new financial services. The key, he stressed, is expanding usage beyond P2P. “We are working on domestic e-commerce through open banking and bringing in payment gateways,” he said.“The aim is to give people enough reasons to keep money in their wallets. Once that happens, products like savings and credit can grow on a stronger base.”

The deputy director further noted that Eswatini’s regulatory landscape is strengthening, with the NPS Act and the Data Protection Act of 2022, providing solid legal foundations.

*…

CBE launches E200m bond auction

MBABANE – The Central Bank of Eswatini (CBE), acting as agent for government, has announced the launch of a fresh E200 million Government Bond Auction scheduled for November 25, 2025.

These signals continued momentum in the domestic debt market at a time when investor appetite for longer-dated government securities remains strong.

The auction, which features four fixed-coupon bond reopenings – SG118, SG119, SG120 and SG121 – will offer E50 million across each line, with coupon rates ranging from 10.50 per cent to 12.00 per cent. The bonds mature between 2028 and 2035 and will be issued through a competitive multiple-bid model open to individuals, corporates and institutional investors.

According to the CBE, the issuance aims to deepen the secondary market, enhance price discovery, support financial intermediation, and meet government’s budgetary requirements in an environment where demand for investment-grade fixed-income instruments has remained resilient.

*Full article available in our publication

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Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

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