According to the National Financial Inclusion Strategy II (2023-2028) financial inclusion means ‘that individuals and businesses have access to, and effectively use financial products and services that meet their needs, are affordable, and are delivered in a responsible and sustainable way.’ Broadly, financial inclusion refers to the effective access by citizens to a range of quality financial services such as credit, savings, insurance, payments and remittances, provided by diverse financial service providers.
Financial inclusion is widely recognized as one of the core enablers for the achievement of sustainable development goals (SDGs), and an inclusive financial sector is an important prerequisite for the attainment of broader development objectives. Thus, financial markets play a vital role in creating a sustainable future by improving the allocation of capital towards more sustainable outcomes in society, enabling households to access basic services and opportunities as well as enabling micro small medium enterprises (MSMEs) and farmers to be productive and grow. Enhancing financial inclusion has proven in many countries across the world, to lead to the development of a stable, resilient, and competitive financial sector and contribute to broad-based wealth creation, economic growth, and improved standards of living of people across socioeconomic and demographic indicators. The Finscope Consumer Survey (2018) revealed the financial inclusion state as 87%, despite the numerous barriers to financial inclusion in Eswatini.
Overall, the Central Bank of Eswatini (CBE) explicit financial inclusion role is to maintain a resilient financial system and ensuring that there is financial access to all individuals and businesses within the economy. In doing so, the Bank uses policy objectives of inclusion, stability, integrity and consumer protection (I-SIP). The evolving policy objective of the CBE, financial inclusion, protection and integrity complement the Bank’s overall mandate and are the central motif for the achievement of financial and monetary stability.
CBE in fulfilling its financial inclusion objective continues to collaborate with various stakeholders, which include among others, the Ministry of Finance (MoF), Centre for Financial Inclusion (CFI) and the Financial Services Regulatory Authority (FSRA). Internationally, the Alliance for Financial Inclusion (AFI) continues to support the Bank in its financial inclusion journey together with other international organizations including the United Nations Development Programme (UNDP) and the World Bank.