Swaziland’s Ministry of Finance reportedly will launch a program to protect Swazi consumers from over-indebtedness by making consumer credit information available to all credit providers in the country, including development finance institutions, microlenders, savings cooperatives and retailers [1]. Another aim of the effort is to lower the cost of credit to support a government effort to increase financial inclusion in the country from 50 percent in 2011 to 75 percent by 2022 [2]. The principal secretary in the Ministry of Finance, Bheki Bhembe, reportedly said that “The project aims to strengthen credit information flow in Swaziland. By so doing, the project aims to increase access to affordable credit among the under-served market segments.”
FinMark Trust, a nonprofit organization based in South Africa that promotes financial inclusion and regional financial integration, will be in charge of launching the new project. FinMark Trust also provided technical assistance in the drafting of the Credit and Consumer Protection Bill to the Ministry of Finance of Swaziland in 2012 [3]. The UK Government is the primary funder of FinMark Trust.
By Julia Marín, Research Associate
About the Ministry of Finance of Swaziland
The Ministry of Finance seeks to promote macroeconomic stability in Swaziland through fiscal and financial policies that focus on economic growth and the welfare of its citizens. The Ministry aims to provide a sound regulatory framework for the country’s financial sector, advise the government on fiscal discipline, present budgets to parliament, collect revenue and manage expenditures efficiently, create an environment that will promote private sector development, and supervise and monitor the nation’s public enterprise portfolio.
About FinMark Trust
Established in 2002 in South Africa, FinMark Trust is a nonprofit trust, funded primarily by the UK’s Department for International Development (DfID). Its main goal is to “make financial markets work for the poor, by promoting financial inclusion and regional financial integration.” It does so by conducting research on financial policy and regulation, savings, consumer financial empowerment, housing finance and payment systems in Africa. The size of the organisation’s budget is not available.
Sources and Additional Resources:
[1] Times of Swaziland, Govt tightens screws on credit extension
[2] Swazi Observer, Govt wants financial inclusion increased by 25% to 75%
[3] FinkMark Trust Country, News Swaziland
MicroCapital, November 7, 2012, FinMark Trust 2012 FinScope South Africa Survey: Banking Population Increased from 63% to 67% in Past Year
MicroCapital, February 24, 2012, Swaziland’s Ministry of Finance Prepares Bill to Regulate Microfinance, Launches Rural Finance and Enterprise Development Program
MicroCapital, January 24, 2012, Merar Offers $3m Investment in Microfinance Project in Swaziland
MicroCapital Universe Profile: The Ministry of Finance of Swaziland
MicroCapital Universe Profile: FinMark Trust
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