THE Eswatini Stock Exchange (ESE) has called for coordinated national action to attract investment, deepen capital markets and expand financing options for businesses.
Speaking at the official launch of Kwakhanya 2030, the Exchange’s five-year corporate strategy, at the Royal Villas Ezulwini last Thursday, ESE Chief Executive Officer Simanga Mdluli said the country needed to compete more actively for domestic and international capital.
“Capital has choices. Investors compare countries and companies compare financing options. Eswatini cannot wait for investment; we must compete for it,” Mdluli said.
He argued that the country needed a capital market that connected available savings with businesses, entrepreneurs and development projects requiring long-term financing. While banks remained important, he said companies should have alternatives, including corporate bonds, equity investment and stock exchange listings. Mdluli said the Exchange’s ambitions would require cooperation beyond the institution, proposing the development of a National Capital Markets Master Plan to guide the country’s long-term market development.
“Kwakhanya 2030 is the Exchange’s strategy, but developing our capital market involves fiscal policy, taxation, pension and insurance investment rules, company law, privatisation, infrastructure financing, SME development and the mobilisation of domestic and foreign capital,” he said. He pointed to Kenya and Rwanda as examples of countries that had developed national capital-market master plans, saying the country needed its framework suited to its institutions and economic ambitions. The proposed plan would bring together government, the Central Bank of Eswatini, the Financial Services Regulatory Authority (FSRA), Eswatini Revenue Service, investors, issuers and development partners to establish shared priorities and responsibilities.
Mdluli said reforms should enable the introduction of new products, encourage responsible innovation and attract foreign participation without compromising investor protection.
“Development does not mean weaker regulation. Investor protection, good governance, transparency and market integrity are essential,” he said.
The CEO also highlighted the need to prepare small and medium enterprises (SMEs) to access capital. Through its Catfuta mentorship programme, the ESE intends to help businesses improve their investment readiness and prepare for potential capital raising.
He further called on institutional investors, brokers and listed companies to contribute to market development by supporting liquidity, improving distribution channels and maintaining strong governance as well as transparency standards.
Mdluli said the Exchange would be accountable for delivering measurable outcomes under the new strategy, including attracting more issuers and investors, improving liquidity, introducing useful products and making market participation easier.
“Tonight must mark the beginning of execution,” he said, adding that the strategy’s success would ultimately depend on collective action.
The four strategic goals of Kwakhanya 2030:
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Financial sustainability: Diversify revenue, manage costs and develop sustainable services.
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Greater market depth and breadth: Attract more issuers and investors, improve liquidity and introduce new investment products.
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Improved market efficiency: Strengthen trading, clearing and settlement systems, technology and connectivity.
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An enabling environment: Promote coordinated action among Government, regulators and the private sector to support capital-market development.
FSRA calls for investor protection
THE Financial Services Regulatory Authority (FSRA) called for stronger investor safeguards as the Eswatini Stock Exchange pursues market expansion and introduces new investment opportunities.
FSRA acting Chairman Joel Dlamini said market development and investor protection should advance together, with confidence depending on fair practices, reliable disclosures and consistent enforcement of securities laws.
“The development of a vibrant Capital market and the protection of investors are complementary objectives,” Dlamini said at the recent launch of the ESE’s Kwakhanya 2030 strategy.
He said regulation should protect investors and preserve market integrity while allowing responsible innovation and greater market efficiency.
Dlamini also highlighted emerging risks associated with technology, cybersecurity, market abuse and the introduction of new financial products, stressing the need for appropriate disclosure and risk management.
Investor education, he said, must remain a priority as more people are encouraged to participate in capital markets.
ESE urged to widen SME access to capital
THE FSRA also urged the Eswatini Stock Exchange (ESE) to create opportunities for viable small and medium-sized enterprises (SMEs) to access capital and finance their growth.
Acting Chairman Joel Dlamini said appropriate listing pathways and investor safeguards could help businesses explore alternatives to conventional financing.
“We should pay particular attention to the needs of small and medium-sized enterprises which often face significant challenges in accessing suitable finance,” Dlamini said.
He said said be viewed not merely as a compliance exercise or a mark of prestige, but as an avenue for raising capital, strengthening corporate governance, increasing visibility and supporting long-term expansion. He also called for greater diversity in investment products, taking into account market demand, regulatory requirements and the capacity of the financial system.
Dlamini said expanding access to capital markets could help connect domestic savings with productive investments, provided investor protection and responsible capital allocation remained priorities.
