The Central Bank of Eswatini (CBE) has extended its technical support to EswatiniBank by another 12 months to help implement the lender’s turnaround plan.
The extension follows the appointment of consultants by the CBE in April to provide technical support to EswatiniBank under Section 42(b) of the Financial Institutions Act, 2005.
The initial intervention was scheduled to run for nine months until December.
CBE Governor Dr Phil Mnisi said the consultants’ work has resulted in the development of a turnaround plan for the bank, prompting the regulator to extend its support to assist with implementation.
As part of the extended intervention, CBE Chief Operations Officer Mfanufikile Dlamini will be seconded to EswatiniBank to provide consultancy services and support the bank’s board and management in implementing the approved turnaround plan.
Prudent
Dlamini’s secondment will start on October 1, and will run for up to 12 months.
Mnisi said Dlamini would undergo a three-month handover period with the current consultants before taking over the ongoing support role.
He said the secondment of one of the CBE’s senior executives was considered a prudent approach while ensuring continuity in implementing the turnaround plan.
The intervention is aimed at strengthening EswatiniBank and supporting its long-term sustainability.
The CBE said the bank continued to fulfil its mandate as a development-oriented financial institution, particularly through its role in supporting job creation, economic stability and sustainable economic growth.
The Central Bank said the extended support was intended to ensure that EswatiniBank remained a strong and resilient institution.
“Although continued engagement of the current EswatiniBank consultants remains under consideration, the Central Bank recognises the high costs of this approach,” Mnisi said.
