Commissioner of Cooperative Development, Russell Nxumalo, has provided an update on the long-awaited establishment of a cooperative bank in Eswatini.
The Commissioner’s remarks came in response to a direct query on the progress of the initiative, which was publicly highlighted by Dr. Celucolo Dludlu, representing the ministry’s Principal Secretary, at the recent Co-operatives Day celebration at Metropolitan Church in Manzini.
Making his remarks on Thursday, Dr. Dludlu noted that he would only consider the Commissioner’s tenure successful upon the bank’s establishment.
According to the European Association of Co-operative Banks, a co-operative bank is a financial institution uniquely defined by its ownership structure and mission. Unlike traditional commercial banks owned by shareholders seeking to maximise profits, a co-operative bank is owned and democratically controlled by its members, who are also its customers.
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Co-operative banks are founded on the principles of self-help, mutual responsibility, and solidarity. They are typically started by a group of individuals who pool their resources to provide banking services to their community, particularly to those underserved by mainstream financial institutions.
This localised approach allows co-operative banks to develop a deep understanding of their members’ needs and offer tailored, affordable financial products and services.
The Commissioner’s report on the bank’s progress comes against a backdrop of a thriving local co-operative landscape. The nation’s co-operative movement boasts thousands of members from over 1 430 registered co-operatives, who continue to champion the principles of democracy, self-help, and social responsibility.
With collective assets now exceeding E3.5-billion, co-operators are proud shareholders of institutions that are not only transforming individual lives but are also collectively shaping the nation’s future.
These co-operatives, particularly the Savings and Credit Co-operative Societies (SACCOS), provide access to diverse savings solutions worth over E2.6-billion and have issued over E3-billion in loans, supporting education, housing, entrepreneurship, and personal advancement, thereby enhancing financial inclusion and improving livelihoods.
“We are at the inception stage. We will have a workshop this month with the relevant stakeholders,” said Nxumalo.
The establishment of any monetary institution is a complex process, and the Commissioner emphasised that all procedures must be conducted in strict accordance with national regulations.
“Anything that is monetary has to go through the Central Bank of Eswatini (CBE),” he explained, adding that the department was actively seeking guidance from CBE Governor Dr. Phil Mnisi, Minister of Commerce, Industry and Trade Manqoba Khumalo, and Minister of Finance Neal Rijkenberg.
Despite the early stage of the project, the Commissioner was optimistic about the groundwork already laid. “As a department, we have already embarked on assessments,” Nxumalo said.
This progress is built on a strong foundation, as the cooperative movement itself is in a healthy state. “The good thing is our movement is very healthy and thriving,” the Commissioner noted, acknowledging that, like any organisation, challenges do exist.
The foundation for this project is anchored in recent legislative changes, with Nxumalo highlighting that the bedrock of the cooperative movement is its Act, which was successfully amended in 2023. This revised legislation provides a robust framework for the sector’s growth and development.
The co-operative bank is framed as a long-term initiative, with Nxumalo describing it as a three-year project. He concluded by outlining next steps, saying: “We are currently doing stakeholder mapping and afterwards we will use those statistics.”
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