ONLY 24% EMASWATI HAVE FINANCIAL CAPABILITY

MBABANE – Only 24 per cent of adults in Eswatini have a high overall financial capability.

This is according to Eswatini FinScope 2018 survey, which also states that 44 per cent have moderate financial capability and 25 per cent only have a low financial capability. Central Bank of Eswatini Macro Prudential expert, Tekhaya Vilakati explained that financial capacity was the ability to manage money well and make informed financial decisions. “It informs whether one can act at their best financial interest, given socioeconomic environmental conditions. With the majority of Eswatini population having a moderate to low financial capability, it is important that policy makers focus on building a financial literate population,” she said.

Vilakati, who was speaking to CentraTalk, said in the 2018 National Budget Speech delivered by the minister of Finance, Niel Rijkenberg, he stated that government’s intention was to promote financial literacy among all citizens in partnership with the Bankers Association. About the importance of financial literacy, Vilakati said through it, people grew their knowledge, skills and confidence to earn, save, invest and borrow money responsibly leading towards greater financial inclusion. “Financial inclusion is central to economic empowerment in society, as it forms the foundation for sustainable economic development of the non and under-banked population. In order for people to drive sustainable economic development of the country, they need to be educated on the basic concepts of savings and available products and services provided by banks,” she said.

Implementation

Adding, Vilakati said successful implementation of a financial literacy programme could have a significant impact on the economic growth and development of a nation. In essence, the expert said a more financially literate population would be empowered and equipped to make wise choices on their personal finances. In order to determine how much work was needed to improve financial literacy in the country, Vilakati suggested that the latest developments in this area should be considered. She pointed out that currently, the country did not have an existing financial education framework, neither was there a clear strategy that has been drafted for its development.

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