CBE PROFIT DROPS BY 9%

MBABANE – The Central Bank of Eswatini’s (CBE) profit margin declined by nine per cent to reach E197.8 million at end of March 2018.
Governor Majozi Sithole said this had been a difficult year but the CBE has been able to contend with the challenges faced.

He explained that during the past year, the CBE has had to operate in a climate where government was faced with fiscal challenges, coupled with increasing domestic arrears to suppliers. “This challenging environment is likely to persist for some time, and the CBE has to be prepared for various eventualities and be responsive to changing conditions. The budget deficit for 2018/19 is projected to stand at E4.5 billion, which is equivalent to 6.7 per cent of Growth Domestic Product (GDP),” said Sithole. 

Assistance

With regards to performance against, Sithole said two main legislations were targeted during the review of the bank’s legislative framework.
These were the CBS Order of 1974 (as amended) and the Financial Institutions Act of 2005.

 Technical assistance was obtained from the International Monetary Fund (IMF) for guidance and quality assurance in the review and drafting of these legislations.

The automation of systems was another key project.
At the commencement of the three years’ strategy, the bank had five different computer systems in place, all generating various business reports.
In order for the bank to achieve the desired performance enhancements, one Enterprise Resource Planning (ERP) system had to be found to integrate all the other systems. He said the new system was successfully introduced, under the name SAP #Insika.

 “Like any major system that is being introduced, there were teething issues, requiring continued attention even in the next strategy cycle.
The same applied to the modernisation of facilities through either renovations or construction,” Sithole acknowledged. 

The governor said all strategic targets related to the people and organisational structure was successfully executed.
He said these included the introduction of a new performance management system which

The bank employees named ‘Sishingishane’ and the revival and/or establishment of functions.
“The development of the code of ethics and establishment of internal structures to operationalise the Code was also an important milestone towards an introduction of the kind of new culture needed at the bank,” added Sithole. 

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