Departments

The Research department is the primary economic information and resource centre of the Bank. It compiles, produces and disseminates economic statistics for the major sectors of the economy. It is tasked with conducting applied economic research in order to provide effective policy advice in the pursuit of economic development and economic management in Eswatini.

• Provide a strong conceptual and empirical basis for policymaking and to better communicate policy to the Government, markets and the public.
• Undertake high-quality research to ensure that the CBE is well equipped to cope with the unprecedented challenges associated with conducting a credible monetary policy.
• Provide models, tools and analyses relevant to the conduct of monetary policy and the fulfilment of other tasks of the monetary policy formulation in the country.
• Coordinate all Bank research in line with the Integrated Research Agenda.

The Department is Constituted of Three Divisions:

• Balance of Payments and International Affairs,
• Domestic Economy which encapsulates the Real Sector, Public Finance as well as Monetary Statistics and Financial Units
• Policy Research and Macroeconomic Analysis

Divisions

Balance of Payments (BOP) and International Affairs (IA)

The Balance of Payments and International Affairs division compiles the balance of payments statement for Eswatini as well as developing and coordinating the Central Bank of Eswatini’s interactions and relations with other Central Banks and regional, international and multilateral institutions and organizations.

The division is divided into two sections namely the Balance of Payments and International Relations and Regional affairs.

• Balance of Payments - This section is responsible for the collection and analysis of external sector data. This includes data on trade in goods and services, international reserves, Factor income, transfers, capital account, financial account and then compiles the country’s Balance of Payments statement and International Investment position.
• International Relations and Regional Affairs - This section is responsible for reporting issues and policies on regional and international developments and cooperation developments. It also, collects, analyses and advises Senior Management on developments taking place in international and regional groupings namely CMA, SACU, SADC, AACB, COMESA, IMF, World Bank, AfDB, BIS and SADC Central Bank.

Domestic Economy

• Monetary and Financial Statistics - The Monetary and Financial Statistics unit is responsible for the collection, compilation and analysis of monetary sector data which includes money supply, credit extension, interest rates and foreign reserves.
• Public Finance - The Public Finance Office is responsible for the fiscal sector. It collects and analyses data on government revenue and expenditure, overall government fiscal position and domestic and foreign borrowing.
• Real Sector - This Real Sector Office collects and analyses data on the Gross Domestic Product (GDP), prices and employment. It also monitors performance of key sectors of the economy namely; agriculture, construction, power and energy, manufacturing, tourism and mining.

Policy Research and Macro-Economic Analysis (PRAMA)

• The Modelling and Forecasting – This section develops economic models using econometric techniques to enable a more rigorous understanding of how the Eswatini economy performs, in order to produce reliable forecasting of key economic variables.
• Policy Research - This section conducts applied economic research to inform economic policy, advice and decision-making.

Research and Statistics Mandate

The Bank conducts research on monetary, financial and economic matters and uses this information in policy formulation. The Bank, together with government, is responsible for formulating and monitoring economic policies that are aimed at promoting economic growth, development.

Research

The Bank undertakes catalytic & strategic research to advance the Bank’s advocacy for macroeconomic stability, sustained growth and economic development whilst ensuring price stability.

Statistics

The Finance Department is responsible for the recording and reporting of all financial transactions relating to the CBE and the preparation of all financial statements that are compliant with the Central Bank Order as well as International Financial Reporting Standards.

The department provides management with accurate, relevant and timely financial information for decision making.

Divisions

Supply chain management

This function is responsible for the strategic sourcing, procurement, contracting, and evaluation of goods and services required by the Bank by implementing the approved Procurement and Supplier Management Policies.
Functions

• Create intelligence on sourcing trends with the intention of ensuring that the Bank derives value for money,delivery performance, customer satisfaction and innovation.
• Act as a single point of contact with external suppliers and vendors and develop an effective communication and engagement strategy to ensure that business areas make Informed choices and plans on procurement and logistics issues.
• Develop appropriate supplier relationships, including strategic supplier alliances between key suppliers and the CBE.

Management accounting

This function provides financial information sufficient to assist management to make financial decisions in line with the Bank's strategy.

Functions

• Bank's Budget & Expenditure Control.
• Staff Payroll, loans and allowances.
• Staff Terminal Benefits.
• Board Retainer & Sitting Allowances.
• Management of the Bank's insurance portfolio
• Management of the Bank's tax matters

Financial accounting

This division ensures that the financial statements of the Bank are accurate and of the highest integrity, and that they comply with IFRS and IAS.
Functions

• Payments processing - All payments processed must relate to services/goods received to support the operations of the Bank i.e. valid, complete and accurate.
• Balance Sheet Substantiation - All balances recorded in primary accounting system (Globus) are accurate/authentic and can be reconciled to appropriate source documents, in accordance with the Bank's policies and procedures.

The Central Bank of Eswatini, through the Financial Markets Department, engages in a variety of operations covering money markets, bond markets, and foreign exchange markets. This is in support of the core objectives relating to monetary and financial stability, and the implementation of the Bank’s monetary policy decisions. In line with the Central Bank of Eswatini’s mandate as outlined in the CBE Order (1974 as amended), the key responsibilities of the Financial Markets Department are as follows:

• To prudently manage the foreign exchange reserves of Eswatini to ensure they are safe, readily available to meet obligations (liquid) and earn market related returns.
• To act as agent and adviser for the Government of the Kingdom of Eswatini in debt origination. The Bank functions as an agent of Government in the issuance, service and redemption of Government securities and Treasury Bills.
• To provide Treasury management services to Government (manage foreign currency inflows, outflows, and all external payments).
• Manage liquidity in the domestic market and facilitate implementation of monetary policy by providing cross-border liquidity for domestic banks.
• Together with other market players, facilitate the development of domestic financial markets.

The Financial Markets department is divided into three sections namely; Risk & Compliance, Treasury Operations, International & Domestic Markets. The main areas of responsibility of each section are outlined below.

Divisions

International and Domestic Markets

International Markets

The International markets team is responsible for strategy and dealing in execution of the reserves management function of the Bank. The unit’s activities include the following:

• Devise and implement annual investment strategy for the reserves portfolios and continuous review of such strategy in line with market movements.
• Analyse and interpret economic and financial data, news and geopolitical developments to identify appropriate investment opportunities and execute trading activities to implement investment strategy and/or necessary review thereof.
• Deploy the reserves by trading in fixed income, money market, and foreign exchange markets and products, in line with the outlined objectives of safety, liquidity and return and in compliance with the Investment Policy and Guidelines.
• Conduct operations in spot, forward, swaps and options markets in the local market to grow the portfolio of foreign exchange reserves.
• Report to Management and Executive in respect of financial market conditions, investment activities and performance of the portfolio.

Domestic Markets

1. Debt Origination
The Bank functions as an agent of Government in the issuance, service and redemption of Government Bonds and Treasury Bills. The Domestic Markets Unit carries out these agency and advisory functions to the Government of Eswatini on debt origination by:


• Assisting Government in raising debt in local and international markets, designing issuance strategies, and managing the debt portfolio.
• Advising Government on alternative sources of funding both in the local and international markets.
• Maintaining a Central Security Depository (CSD) for Government securities and performs custodial services
• Collaborating with key stakeholders to develop and deepen local money markets and capital markets.
2. Monetary Policy Implementation

• Forecasting liquidity in the domestic markets.
• Conducting open market operations to either inject or drain liquidity, based on the results of the liquidity analysis.
• Designing strategies to mitigate capital outflows in order to protect the level of reserves.

Risk Management and Compliance

1. Risk Management and Analysis
• Liquidity risk, credit, and counterparty credit risk management to ensure the safety and preservation of foreign reserves.
• Portfolio risk management and performance measurement to ensure prudent portfolio management.
• Operational risk and evaluation of operational risk management controls to ensure an effective mitigation of threats emanating from all operational activities.
• Risk modelling, development and implementation of quantitative models and tools for strategic and tactical asset allocation.
2. Compliance Monitoring and Counterparty relationship Management
• Ensure compliance and adherence to Investment Policy and Guidelines in all foreign reserves management activities.
• Conduct counterparty due-diligence, screening and on-boarding to ensure that counterparties and potential counterparties meet all the Investment Policy and Guidelines requirements.
• Maintain collaborative and constructive relationships with all counterparties and stakeholders including external fund managers.
• Responsible for putting systems in place for managing AML/CFT in the Financial Markets department. This is to ensure that the Bank is compliant with the measures fighting against Anti-Money Laundering and Terrorist Financing.

Treasury Operations

• Establishment and maintenance of relationships with customers, correspondent banks, counterparties and custodians.
• Confirmation and settlement of trades emanating from Reserves Management and Debt Origination activities.
• Accounting for financial instruments trades in accordance with adopted accounting standards.
• Reconciliation of foreign account balances to internal records (General Ledger).
• Provision of international banking services to the Eswatini Government, CBE and other designated customers.
• Modernization of business processes and payment systems to enhance efficiency.
• Continuous screening of all transactions to ensure compliance to regulatory standards.

The Financial Regulation department is responsible for regulating and supervising the banking sector to the end of achieving a sound and efficient financial system. The department has 4 divisions; Bank supervision, Financial surveillance, Policy conduct and enforcement, and Financial Surveillance.

Divisions

Bank Supervision

The Bank Supervision division carries the responsibility of licensing, regulating and supervising banks and other financial institutions in Eswatini. Regulation refers to enforcement of compliance with the framework with which financial institutions are licensed to operate by the bank.
Licensed institutions are subject to prudential rules and regulations. Supervision entails the process of monitoring the control systems, activities and financial conditions of banks in order to ensure that these are operated in a safe and sound manner.

Financial Surveillance

The Financial Surveillance division administers exchange controls on behalf of the Minister of Finance, in terms of delegated authority. The division’s main functions are to implement, administer and monitor the provisions of the exchange controls regulations, as well as to collect, analyse and disseminate information relating to exchange control and cross border foreign exchange transactions.

The authorised dealers in foreign exchange (Banks) carry out the day to day administration of exchange controls, thus dealing directly with the public. Eswatini earns foreign exchange when it sells good and services to countries outside the Common Monetary Area (CMA) and uses foreign exchange when it pays for foreign goods and services. Since Eswatini is highly dependent on imported goods and services, it is necessary to ensure that whatever foreign exchange that is earned from exports, tourism and other sources is used to the best advantage of the country. Exchange control plays a major role in helping to achieve this important goal.

Policy, Conduct & Enforcement

The Policy, Conduct & Enforcement Division within Financial Regulation responsible for developing an accurate and effective regulatory framework for banking sector regulation, aligning it with international standards, best practices and strategic objectives of the CBE. Activities include reviewing and updating existing and drafting of new regulations including legal notices, circulars, and directives pertaining to Financial Regulation; Continually monitor changes in the legislative and regulatory landscape in the light of the CBE strategic objectives.

The division operates under the premise that a successful regulatory framework is composed of a number of inter-related, which are regulation, supervision and enforcement. These components interact with each other to ensure effective banking system oversight and governance.

• Regulation: Legislations, Regulations, Circulars, Legal Notices, Codes of best practices and other standards underpinning effective Supervision and Enforcement.
• Supervision: Risk-Based Supervision, On-sight inspections and Off-sight surveillance of regulated institutions.
• Enforcement: Gatekeeping, investigations and enforcement of regulatory framework and administrative sanctions

Financial Integrity Division

The Financial Integrity Division is responsible for supervising the implementation of the Money Laundering is governed by Money Laundering and Financing of Terrorism (Prevention) Act, 2011 (as amended) and subsidiary regulations in the banking sector. It ensures that all accountable institutions (commercial banks, forex exchange bureaus, money value transfer service providers and money remittances) are cognizant of the general principles and guidelines relating to money laundering.

The Ministry of Finance tasked the Central Bank with the responsibility to ensure that all accountable institutions are cognizant of the general principles and guidelines with regard to money laundering and terrorist financing in order to deter and detect money laundering and terrorist financing activities, thereby preventing abuse of the financial system by money launderers and terrorists. Under the supervision of the Central Bank, accountable institutions are required to set up internal control measures in order to combat these activities.

Divisions

Human Capital Operations

• The recruitment and selection unit is responsible for the staffing needs of the Bank.
• The Staff Benefits unit is responsible for all employee welfare related matters including the administration of pension, administration of medical aid scheme, administration of group life insurances, supervision of the sports club, administration of rural housing scheme and organising staff events such as the Christmas Party, Family Day and the management of staff leave.
• The Employee Assistant Programme (EAP) assistance to staff is available for 24 hours. Staff is able to access EAP services, which include but are not limited to counselling, treatment for minor illnesses and injuries, information on matters of wellness and health, and nutritional supplements to mention a few. The EAP coordinator may also assist with contact details of other professional service providers such as reputable medical practitioners and specialists, nutritionists, dentists, counselors, as well as financial advisors.

Talent Management

To increase business value through innovative, robust and agile ICT services and solutions in the Bank, in line with international best practice.
Functions

• To ensure that ICT services meet business expectations and that they continually improve.
• To provide agile ICT solutions that meet the automation needs of the Bank.
• To provide a platform for maintaining accessible and reliable information.

The Internal Audit department evaluates the Bank’s compliance with the law and its own internal policies and operational procedures. It provides an independent, objective assurance and consulting service designed to add value and improve the Bank’s operation. It helps the Bank to achieve its objectives by bringing a systematic, disciplined approach to evaluate and improve effectiveness of risk management, control and governance processes.

The office of the Secretary to the Board is the custodian of corporate governance for the Bank. It houses the legal office which is responsible for providing professional legal advice in all operations to avoid and or mitigate legal risks.

It is also in charge of the information and records section which provides the central filing repository for the Bank. The office also provides administrative services to the Board of the Bank and is responsible for secretarial pool of the Bank.

The Operations Department is a highly professional department that prides itself on having streamlined processes, state of the art, cost effective and relevant systems and business aligned policies.

Divisions

Currency

The Currency Division is responsible for meeting the overall needs and regulation of currency in circulation within the country. The Division also ensures that the physical notes in circulation are in an acceptable condition and standard by replenishing currency stock and redeeming all notes from circulation.
Functions

• Ordering and receipt of notes and coins from printers & minters.
• The safeguarding of the sash holdings and precious metals.
• Issue and receipt of currency to and from banks.
• Processing of Cash deposited by commercial banks
• Keeping records of all movements of cash within the cash center.
• Destruction of soiled / unfit notes in coordination with Internal Audit, Security and Finance.
• Redemption of mutilated notes from customers.
• Receipt and repatriation of Rand notes from customers.
• Ensuring adequate supplies of local currency notes and coins in order to meet the needs of the Eswatini economy.

Banking

The Banking Division is divided into two parts; namely the front office and the back office. These are further divided into sections reporting to their respective heads. The front office has the local cash payment and deposits taking section which accepts deposits from Government and pay out by honoring Government cheques presented at the counter. The foreign exchange section, in the same office deals with the sale and purchase of foreign currencies.

The Back office is responsible for clearing of local and cross boarder cheques, posting of entries, reconciliations and dispatching of customers' account statements. It consists of the ledgers and clearing, inland bills, remittances and reconciliations, movements, statement dispatching and cables.
Functions

• Provide Banking services to the following clients: Government; Commercial Banks; CBE Staff and in some instances the General Public.
• The Front Office deals with cash and foreign exchange.
• The Back Office deals with ledgers and clearing.

National Payment Systems

The Bank facilitates the development and operation of efficient national payment systems. It therefore oversees the safety and soundness of the systems. The main aim is to ensure that payment systems are secure, reliable and cost effective to meet the needs of the Swati economy.

National Payment and Settlement Systems

The main role of this department is to oversee the National Payment Systems in accordance with the Central Bank Order and the National Clearing and Settlement System Act 2011.

Fintech and Innovation

In March 2018, the Central Bank of Eswatini (CBE) established a Financial Technology (Fintech) Unit, to actively monitor Fintech developments in the country and globally. The Fintech unit, through research, seeks to understand the opportunities and risks presented by Fintech developments.

The unit conducts research on emerging technologies such as Artificial Intelligence (AI), Crypto-assets, Distributed Ledger Technology (DLT), Central Bank-issued Digital Currency (CBDC), Internet of Things (IoT), and Application Programming Interfaces (APIs) and their application in finance. The Unit also monitors global Fintech regulatory developments to inform economic policy and financial regulatory regime.

The Internal Affairs department responsibility is to inculcate an ethics culture whilst ensuring adherence to national legislation and procedures and to protect the assets of the Bank. It is also responsible for the management of the Bank's fleet of transport.

Divisions

Ethics

• To inculcate an ethics culture to employees, stakeholders and the board.
• To administer the code of ethics and promote good conduct.
• To conduct investigations on transgressions by employees.
• To initiate and lead all investigations in the Bank.
• To recommend remedial action to appropriate department(s).
• To liaise with law enforcement.
• To provide intelligence information to the Bank.
• To develop anti- theft/fraud measures in the Bank.
• To administer the regulatory compliance framework of the Bank.

Security & Protection Services

• To provide physical security to Bank premises.
• To protect all Bank assets, including people and money.
• To provide armed response support during critical operations.
• To manage and administer the Banks integrated security systems.

Strategy

The Strategy division is responsible for the development, execution and evaluation of the Bank's corporate strategy. The office further manages all CBE projects.
Functions

• Strategy development this entails doing an environmental analysis, goal setting and development of department execution plans.
• Execution of Strategy this involves cascading and communication of the strategy.
• Periodic reviews and evaluations of the strategy.
• Managing and supervising all CBE projects according to the Projects Management Framework (PMBoK)

Communications

The Communications division uses integrated marketing communications to serve as a yardstick for evaluation on progress in carrying out the Bank's mandate as well assisting the Bank in positioning itself in an increasingly complex global environment. It is responsible for stakeholder relationship management, media relations, branding and overall communications.

The duty of the division is to build public understanding. It is also responsible for public relations, media relations, the Bank's website and newsletter, education and community programmes, including the Bank's Corporate Social Investment (CSI) programme. The division also manages internal Bank-wide staff communications.

Functions

• Brand Communication through positioning and exploiting the Bank's products and services in order to enhance the CBE brand, products (coins, notes, bonds, treasury bills) and services. it also involves the promotion and provision of information about products and services through advertising, public relations, media relations and Corporate Social Investment and providing products and services through tools that are convenient for stakeholders to access i.e. website, intranet, emails, noticeboards, roadshows etc.
• Stakeholder Management through identifying, recognizing and acknowledging stakeholders, determining their influence and interest, establishing their communication management plan and engaging them.

Publications

The Publications Division encompasses the Publications Unit and the Library.

 Publications Unit

• Provide the central point to manage the Bank’s publications activities including consolidating, editing, proof-reading and providing quality assurance of such reports before being published.
• Collaborate with Bank departments to generate and quality-assure senior management speeches and media responses to maintain the Bank's positive image.
• Oversee the design and layout of publications, ensuring that they are presentable, appropriately branded, and easy to understand.

Library Unit

• Promptly deliver relevant and accurate information resources to support staff members in their work, research, and professional development. This strategic approach enhances overall staff performance, productivity, and knowledge acquisition, ultimately contributing to the Bank’s mandate.

• Build and strengthen collaborative relationships with external and relevant stakeholders by sharing information to achieve mutual goals.

The Risk and Compliance department plays a pivotal role in identifying, assessing, and mitigating potential risks that could impact the Bank’s operations. This involves conducting thorough risk assessments to identify both internal and external factors that could pose a threat to the Bank. Once identified, these risks are evaluated based on their likelihood and potential impact. This information is then used to develop effective risk mitigation strategies.

By ensuring adherence to applicable laws, regulations, and industry standards, the compliance function helps to prevent legal and financial penalties, as well as reputational damage. Through monitoring compliance and conducting regular assessments, the department can identify and address any non-compliance issues before they escalate. This not only helps to prevent legal and financial penalties but also protects the Bank’s reputation.

Furthermore, the department provide valuable advice and guidance on risk and compliance matters to the leadership, helping to ensure that the Bank is well-positioned to achieve its strategic objectives.

The department is also responsible for the Business Continuity Management (BCM) Unit of the Bank. The BCM Unit’s main objective is to ensure that the Bank can maintain critical and auxiliary processes and quickly respond and recover to any unexpected disruption such as disaster, cyber-attacks, or political/social unrest. The unit maintains operational resilience in responding quickly to any interruptions through developing, maintaining, and implementing the business continuity management program for the Bank.