MBABANE – Swaziland Building Society conversion to SBS Bank Eswatini’s conversion comes with a new ownership structure dominated by institutional investors, with PSPF holding the largest equity stake.
The Public Service Pensions Fund (PSPF) is the largest shareholder in SBS Bank Eswatini, owning 44 per cent following the institution’s conversion into a commercial bank. The new ownership structure has come into sharper focus following government’s formal receipt of its shareholder certificate last week, marking the completion of another important milestone in the transition from a member-owned building society to a shareholder-owned commercial bank.
Government now owns 7 per cent of SBS Bank Eswatini, making it one of the institution’s significant shareholders, although PSPF remains the largest investor with a 44 per cent stake.
Minister for Finance Neal Rijkenberg received the shareholder certificate from SBS Bank Eswatini during a ceremony held at his office on Friday. The certificate was presented by SBS Bank Eswatini General Manager Leonard Dlamini, together with Manager Legal and Board Secretary Velaphi Dlamini.
The handover formally recognised government’s equity stake in the bank after the conversion process, which saw existing members of the former building society exchanging their permanent shares for ordinary shares and temporary redeemable shares under the new corporate structure.
The Eswatini Royal Insurance Corporation (ESRIC) holds 28 per cent of the bank, while Tibiyo Taka Ngwane owns 4 per cent and Swaziland Empowerment Limited controls 3 per cent.
The remaining shareholding is spread among individual investors and smaller groupings, including Savings and Credit Cooperative (SACCOs), many of whom were members of the former building society. The ownership restructuring followed the conversion process involving more than 9 500 members of the Swaziland Building Society.
Previously, the institution operated under a mutual ownership model where members held permanent shares rather than conventional equity.
Under the new commercial banking structure, those permanent shares were converted into two new share classes comprising ordinary shares and temporary redeemable shares.
Government itself was also a member of the former building society and converted its holdings into ordinary shares alongside other institutional investors that have now become shareholders of SBS Bank Eswatini.
The new structure represents one of the most significant governance changes in the institution’s history, aligning it with the corporate ownership model adopted by commercial banks while preserving participation by many of its long-standing members.
…govt’s confidence in SBS Bank Eswatini
MBABANE – Receiving the shareholder certificate, Minister for Finance Neal Rijkenberg said government’s investment went beyond simply owning shares.
He said the investment demonstrated government’s confidence in SBS Bank Eswatini and reflected its commitment to building a resilient financial sector capable of supporting businesses, creating opportunities and contributing to national development.
“This investment is about more than shareholding. It is about investing in Eswatini’s future by supporting a strong, stable and inclusive financial sector that drives economic growth and delivers value for emaSwati,” said the minister. SBS Bank Eswatini General Manager Leonard Dlamini thanked government for its continued confidence in the institution, saying SBS Bank Eswatini remains committed to maintaining sound corporate governance, achieving operational excellence and making a meaningful contribution towards the country’s economic development.
According to the Ministry of Finance, the issuance of the shareholder certificate reflects government’s strategic investment in strengthening Eswatini’s financial sector, promoting financial stability and supporting sustainable economic growth.
SBS Bank Eswatini enters the commercial banking market from a position of considerable financial strength. Its latest abridged financial statements show that the institution significantly expanded its lending activities during the financial period leading up to its conversion, with its flagship Sipatji Loan Portfolio emerging as the main driver of growth.
Loans and advances to customers increased by eight per cent from E2.48 billion at the end of March 2025 to E2.67 billion by December 2025.
The increase helped push the institution’s total assets beyond E3.6 billion, providing a solid balance sheet as it prepares to compete directly with the country’s established commercial banks.
Management attributed the growth primarily to the strong performance of the Sipatji Loan Portfolio, which has become one of the bank’s key business segments and an important contributor to earnings.
For nearly six decades, the Swaziland Building Society primarily focused on mortgage finance and savings products under the legal framework governing building societies.
Its conversion into a commercial bank now enables the institution to broaden its product portfolio beyond its traditional offerings.
