Investor's Guide To Eswatini

8 Banking and Financial Services 00 GOL 002 002 OGE GOC Buo F inancial institutions in Eswatini comprise three South African banks, First National Bank, Nedbank and Standard Bank along with the government- owned Eswatini Development and Savings Bank, which offers retail and corporate banking facilities with international transacting facilities. The country also has a building society that offers various categories of banking products, investments and savings with more orientation on property development. Swaziland Industrial Development Company (SIDC) is a semi-private development company committed to supporting its customers with quality services in the financing of projects through equity, loans, financial leasing and factory buildings for lease. SIDC is a joint venture between the Government of Eswatini and three financial institutions namely Nedbank, Swaziland National Provident Fund and Standard Bank. National Industrial Development Corporation of Eswatini (NIDCS) is a government entity that invests in economically and financially viable, technically feasible, and environ- mentally friendly projects that have sustainable medium to long-term returns and growth effects to Eswatini's so- cio-economic economy and its stakeholders. The Public Service Pension Fund, a manager and administrator of pensions for government employees, is also charged with managing and investing the accumulated pension assets. The domestic investment is diversified to various sectors of the economy including agriculture, real estate, finance and public sectors. The fund strives to invest in projects that address the challenges of job creation and economic stimulation without compromising investment returns. STANLIB Swaziland a subsidiary of the Liberty Life Group is available in the country. STANLIB's expert investment franchises operate in the equity, fixed income and property investment sectors. Old Mutual Swaziland also provides funding for various sectors including agriculture and other sectors. The Swaziland National Provident Fund seeks to provide the fund's members with the best retirement packages through investing wisely as one method among others. Funding is made available for various projects depending on their viability and return on investment. African Alliance is a pan-African investment banking company that offers a wide array of services to clients including active investment management, security management and asset management. The Swaziland Finance Development Corporation (FINCORP) assists Swati entrepreneurs by financially empowering them at grassroots level. Eswatini is a signatory to the Common Monetary Area (CMA) Agreement, and there is an unfettered flow of funds between Eswatini, Lesotho, Namibia and the Republic of South Africa. The four combined form a single exchange control territory. Each, however, administers exchange control within its borders for transfers with the rest of the world. Eswatini classifies residents into those who are CMA (residents) and those of the rest of the world (non-residents). As part of government policy in attracting foreign investment, dividends derived from current trading profits are freely transferable on submission of documentation (including the latest annual financial statements of the company concerned) subject to provisions for non-resident shareholders taxes. Local credit facilities may not be utilised for paying dividends. In addition, Eswatini has a relatively small stock exchange with only seven companies currently trading. The exchange only deals with equity and debt instruments. The debt instruments are currently government and corporate bonds. In 2010 the Financial Services Regulatory Authority was established. This institution governs non-bank financial organisations including capital markets, insurance, retirement funds, building societies, micro-finance institutions and savings and credit cooperatives. The royal wealth fund, national pension funds and private funds invest in the private equity market. Regulatory Institutions The Central Bank of Eswatini The CBE regulates all banking institutions in the country. It was established as the monetary authority in 1974 under the Monetary Authority Order of the same year, empowering the bank to monitor, regulate and develop Eswatini's financial infrastructure. The Financial Services Regulatory Authority (FSRA) The FSRA was established in 2010 under the Financial Services Regulatory Authority Act to regulate non-bank financial services providers in the country. The Authority manages about 390 non-bank financial institutions, including retirement funds, cooperatives, insurance providers and brokers, fund managers, beneficiary funds and corporate agents amongst others. Investor's Guide To Eswatini 31

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