Minister of Commerce, Industry and Trade Manqoba Khumalo has issued a firm warning to savings and credit cooperatives (SACCOs).
He said poor governance could erode public trust and undermine the sector’s growing role in the country’s economy.
Speaking during the official opening of the 7th SACCO Indaba at Esibayeni Lodge in Matsapha yesterday, Khumalo stressed that safeguarding members’ funds must remain non-negotiable, urging SACCO leadership to uphold the highest standards of accountability, transparency and professionalism.
He said good governance was not optional, but a fundamental requirement for sustainability, noting that boards and management teams had a duty to act with integrity and sound judgement at all times.
The minister’s remarks came at a time when SACCOs continue to expand their footprint as accessible financial institutions for ordinary Emaswati, particularly those underserved by traditional banks.
Framing his address around the theme of empowering members through savings and cooperative solidarity, Khumalo described savings as the backbone of national development. He said a strong savings culture enabled investment, economic growth and resilience, positioning SACCOs as critical vehicles for inclusive development.
He noted that SACCOs had evolved beyond being mere financial institutions, describing them instead as community-based development engines that were driving financial inclusion across rural communities, women, youth and low-income earners.
According to the minister, thousands of Emaswati were relying on SACCOs to finance education, housing, agriculture and small businesses, thereby contributing meaningfully to the country’s economic activity.
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He further highlighted the sector’s growing influence in entrepreneurship, stating that many small and medium enterprises (SMEs) had been initiated and sustained through SACCO financing.
As such, he urged cooperatives to design innovative financial products that support productivity and sustainable income generation.
“Growth without strong regulatory compliance could expose the sector to risk. SACCOs must embrace compliance frameworks as tools to strengthen stability, manage risk and protect member deposits,” Khumalo said.
Looking ahead, the minister pointed to digital transformation as a necessary step for the sector’s evolution.
He said SACCOs must adopt technologies such as mobile platforms, online loan applications and electronic payment systems to improve efficiency and expand access.
At the same time, he warned that technological advancement must be accompanied by robust cybersecurity measures and data protection to maintain member confidence.
Khumalo also called for greater unity within the cooperative movement, stressing that solidarity remained central to ensuring inclusive growth. He urged SACCOs to collaborate, share best practices and build a collective vision rather than operate in silos.
He commended ESASCCO for organising the Indaba, describing it as an important platform for strategic dialogue, capacity building and stakeholder engagement within the cooperative financial sector.
The minister encouraged delegates to ensure that discussions held during the two-day gathering translated into practical actions that would strengthen governance, improve member services and enhance sustainability.
He then officially declared the 7th SACCO Indaba open.
