‘ESE faced with liquidity, awareness, governance challenges’

Limited liquidity, lack of investor awareness, the need for stronger corporate governance and few new listings stand out as key obstacles faced by Eswatini Stock Exchange (ESE).

ESE acting Chief Executive Officer (CEO) Ncamiso Ntshalintshali said low liquidity hampered market activity and investor confidence.
“Limited liquidity is a significant issue as it affects the ability of investors to buy and sell securities quickly and at fair prices,” Ntshalintshali said.
He noted that ESE was also facing difficulties due to lack of investor awareness.

The acting CEO added that many potential investors did not fully understand the benefits and risks associated with investing in the stock exchange and that slowed development of their capital market.
According to Ntshalintshali, improving corporate governance is vital to attracting investors and sustaining confidence in the market.

He said more new listings would help diversify investments and encourage investors to move away from buying and holding, as there would be more companies to choose from, which in turn would improve liquidity.
To address these challenges, ESE was focusing on strategic initiatives, like enhancing investor education, promoting good governance practices, investing in technology and improving market liquidity. He further highlighted efforts to attract more investors, both local and foreign, by developing new financial products and improving the overall trading experience.

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“We are also working on enhancing our technology infrastructure to provide a more efficient and reliable trading platform,” he added.
The acting CEO stated that global economic factors, including geopolitical tensions and supply chain disruptions have had an impact on ESE.
He added that these tensions had led to increased volatility in global markets, affecting investor sentiment worldwide.

“Eswatini, being a small open economy is not immune to these shifts. Fluctuations in commodity prices and exchange rates have influenced some listed companies, especially those in export-oriented sectors,” he said.
Supply chain disruptions had also impacted companies reliant on imported inputs, potentially affecting profitability and stock performance.
On the positive side, Eswatini’s relatively stable macroeconomic environment had buffered some external shocks.

The country’s inflation rate averaged 4.8 per cent in 2024, remaining below the Southern African Development Community (SADC) benchmark, helping to maintain investor confidence.

Government’s proactive fiscal policies and efforts to diversify the economy had contributed to a projected real gross GDP growth of 3.6 per cent for 2024, indicating a positive outlook despite global uncertainties.