ISSUES IN BANKING AND FINANCE ASSIGNMENT An analysis of the accessibility of the financial sector in Swaziland

Name: Mawira Chitima Student Number: 15784223

I certify that this is all my work and I did not receive any help from anyone.

Table of Contents
List of Figures ............................................................................................................................ iii List of Tables .............................................................................................................................. iii List of Acronyms ........................................................................................................................ iii 1. 2. Introduction ............................................................................................................................. 1 Overview of Swaziland ........................................................................................................... 2 The Swazi Economy.................................................................................................................... 4 The Financial Crisis and Swazilands Economy ......................................................................... 5 3. The Financial landscape .......................................................................................................... 5 The Banking Sector ..................................................................................................................... 5 The Central Bank of Swaziland and Its Role .............................................................................. 5 Exchange rate system .................................................................................................................. 7 Supervision and regulation of financial institutions .................................................................... 7 Non Bank Financial Institutions (NBFI) ..................................................................................... 7 Development Financial Institutions ............................................................................................ 8 Microfinance Institutions ............................................................................................................ 8 Savings and Credit Cooperatives ................................................................................................ 9 Money lenders ............................................................................................................................. 9 4. Accessibility of Formal Banking: Who are the unbanked? ................................................... 10 Swaziland Banking Access study of 2004 ................................................................................ 10 5. Improving accessibility to Finance for the unbanked in Swaziland ...................................... 12 Use of the post office and large retailers ................................................................................... 12 Promote Microfinance Institutions ............................................................................................ 12 Improve competition between banks ......................................................................................... 12 Promote cellphone and telephone banking................................................................................ 13 6. 7. Conclusion ............................................................................................................................. 14 References ............................................................................................................................. 15

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List of Figures
Figure 1: Swaziland map showing high density population areas where banks are located. ......... 3

List of Tables
Table 1: Microfinance Institutions in Swaziland ............................................................................ 8 Table 2: SACCO data for Swaziland (MoAC Annual Report, 2006)............................................. 9

List of Acronyms
AIDS ATM BIS CMA COMESA Fincorp GDP GNI HIV IFAD LUSIP MoAC NBFI R SACCO SASCCO SACU SADC SIDC SNL SRIC Swazibank Acquired Immuno-deficiency Syndrome Automated Teller Machines Bank of International Settlements Common Monetary Area Common market for Eastern and Southern Africa Swaziland Development Finance Corporation Gross Domestic Product Gross National Income Human immune-deficiency Virus International Fund for Agricultural Development Lower Usuthu Smallholder Irrigation Project Ministry of Agriculture and Cooperatives Non Bank Financial Institutions Rand Savings and Credit Cooperatives Swaziland Association of Savings and Credit Cooperatives Southern African Customs Union Southern African Development Community Swaziland Industrial Development Corporation Swazi Nation Land Swaziland Royal insurance Corporation Swaziland Development and Savings Bank iii

TDL MFI US

Title Deed Land Microfinance Institutions United States

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1. Introduction
The financial system is the economys plumbing. And like the plumbing in a house, it is taken for granted when it works, but when it doesnt, watch out. In the same way that that modern living depends on a reliable flow of water running through pipes, the modern economic system depends on a reliable flow of financing through intermediaries the BIS 79th Annual Report says

The poor performance of African economies has been studied by many scholars (Collier and Gunning, 1999; Sachs, 2005; Calderisi, 2007) concerned at the slow rate of growth of these economies, despite the aid given to the continent. The scholars and authors have identified some factors that contribute to this slow growth rate, such as: a) lack of social capital; b) lack of openness to trade; c) deficient public services; d) harsh geographic conditions; and e) lack of financial depth. These factors lead to African economies being highly dependent on foreign aid. In recent times, the role of aid in promoting African economic growth has been questionable. The geographic situation of Africa stands out significantly as a contributor to the slow growth. African countries are predominantly land locked, small in area and population and subjected to harsh tropical diseases (malaria, bilharzias, denge fever) and low agricultural output compared to other continents. African trade is hampered by poor natural transport routes (rivers, flat unbroken terrain) and low population in individual countries. Africa has low population density. The question often discussed is whether a sound financial system is a prerequisite for development or is a result of development. Some authors have argued that a stable financial system is a prerequisite for growth (Kolb and Rodriguez, 1996; Viney, 2001). They point out that an economy needs financial investment opportunities to be deep and spur economic development. Monetisation of the economy alone is not enough for financial depth. How can financial systems be better made to work better for Africas development? The World bank (2007) notes that if Africas growth recovery is to be sustained and generalized, effective financial systems are a clear prerequisite. It has been shown in East Asia that finance can expand opportunities and reduce risk by putting national savings to work in productivity increasing investments. Micro finance has helped low income households manage risk through 1

savings. The Bank suggests that the most pressing needs in African finance are i) to increase the availability and lower the cost of credit to productive enterprises and ii) to extend the reach of basic savings, payments, credit and insurance services for low income people and for the smallholder farms and micro enterprises which provide their livelihood. Despite the challenges that Africa has, financial services have to be delivered safely and at reasonable cost to the vast majority of businesses, large and small, and to individuals. The development of an effective financial system will be enhanced by macroeconomic stability, contractual certainty and policy and financial transparency, World Bank, (2007). Advantage has to be taken of the innovations in financial, information and communication technology and use of well adopted organizational structures. Microfinance helps bring the poor to get a lift from the bottom and then mainstream finance help them develop further. For access to the poor, mainstream financial institutions can act as financial wholesalers for microfinance. This paper will examine how Swaziland has advanced its quest for deep financial systems. It will define the economic context of Swaziland, define its financial landscape, and how accessible finance is to businesses and the population at large. It will conclude by looking at possible ways of enhancing access of financial services to the population, especially the poor.

2. Overview of Swaziland
Swaziland is a small (17,364km2 ), landlocked country in southern Africa. It is primarily surrounded by South Africa, with the exception of a small border with Mozambique. It is ruled by a monarch as executive head of state and he appoints a Prime Minister, as head of government, which oversees the day to day functions of the state. The Swazi parliament is made up of representatives chosen from the 55 Tinkhundlas in the country. Residents of each Inkhundla elect a representative from among their own. There are no political parties.

The country is divided into four administrative regions; Hhohho, home to the capital city of
Figure 1: Swaziland map showing high density population areas where banks are located.

Mbabane and the seat of government; Manzini, host to the largest industrial area, Lubombo, the agricultural hinterland and Shisweleni, the poorest of the four. The urban centers of MbabaneManzini corridor, Big Bend, Siteki, Thsaneni, Nhlangano and Siteki are the most densely populated (see Figure 1). It has six agro-ecological regions viz; Highveld, Upper and Lower Middle veld, Western and Eastern Low veld and the Lubombo range. The Highveld is typically with a cold and dry climate in winter and high rainfall in summer and the low veld is typically hot and low rainfall in summer and warm and dry in winter. Crops, such as maize, are mainly grown in the middle veld and tree

plantations are mainly found in the Highveld. The low veld is home to the Swazi white gold, sugarcane farming with irrigation water from the two large water basins in the country; the Komati and Usuthu River basins. The land tenure system in Swaziland is divided into two; Title deed land (TDL) and Swazi Nation Land (SNL). TDL is mainly white owned and used for commercial agriculture. It has a monopoly of water rights from the countrys rivers. The land is mainly used as plantations for trees and the growing of sugarcane, citrus, bananas and for livestock. SNL forms about 75% of the country and is held in trust for the national by the King. SNL is typically with poor quality soils and is used for subsistence farming by the majority of the population. In recent years, the good soils on SNL with access to water for irrigation are being developed to grow sugarcane.

Swazilands population is estimated at about 1,1 million, with an annual growth rate of about 3%. The majority, 75%, of the population resides in rural areas and is not fully integrated into the formal economy. The population has about 69% people under the age of 25. Unemployment is estimated at 40%.

The Swazi Economy

Swazilands gross domestic product is about US$2,9 million and a GNI per capita income of US$2,430 in 2007 (World Bank, 2007). This income is not evenly distributed with the lowest 40% of the population with only a per capita income of US$230 and about 70% of the population lives below the poverty line (US$1/day). The wealth distribution of the country is highly skewed. The biggest economic challenge is to integrate the majority of the population, who are bottom of the pyramid, into the mainstream economy. How to transform subsistence agriculture to commercial agriculture and meet the food security challenges for the country. This effort will also broaden the countys revenue base. The government has taken key steps to create an investor friendly environment by adopting a new constitution, creation of a one stop shop for foreign investors, the Swaziland Investment Promotion Authority, improved relationship with investor countries and maintaining a stable macro-economic environment. The legal system in Swaziland is dualistic. There is the traditional laws and customs and the western style Roman-Dutch Law. Swazilands economy is joined to the hip with that of South Africa. Approximately 85% of imports are from South Africa and 75% of exports go to South Africa. As a member of the Common Monetary Area, with South Africa, Lesotho and Namibia, the Swazi Lilangeni is pegged at 1:1 with the South African Rand. The country is also a member of the South African Customs Union, from which it gets about 50% of its revenue. Whilst there is little debate on the benefits of pegging the Lilangeni to the Rand, there was debate on the benefits of multiple membership of Swaziland to COMESA, SADC and SACU. The country is investing in the development of infrastructure such as roads, airport and dams to stimulate the economy. The recently completed Lubovane reservoir and its related canals at a cost of over US$250 million, about 7% of GDP, and the financing of the Lower Usuthu 4

Smallholder Irrigation Project (LUSIP), is for the commercialisation of agriculture on SNL for smallholder farmers. These developments in infrastructure, particularly the development of smallholder irrigation on SNL, needs to be accompanied by innovative financial products from the financial system. Products that better serve the poor to have access to finance. The poverty reduction effort of government and other stakeholders faces significant challenges from the HIV/AIDS pandemic, climate change, the recent global financial crisis and the volatile world markets for commodities, especially agricultural produce.

The Financial Crisis and Swazilands Economy

The economy of Swaziland was affected by the global financial crisis as witnessed by a) the reduction of remittances from abroad, as migrant workers were being laid off, b) a reduction in orders in the clothing industry as consumer demand waned in the US and Europe, c) failure to raise capital for infrastructure development and d) a reduction in official development assistance from traditional sources. The financial sector was not significantly affected and they did not require government bailouts, as in the US and the United Kingdom. This may be because of the strong ties with the South African market, which remained strong.

3. The Financial landscape

The Swazi financial sector is dominated by the banking sector, with the non-banking institutions still in their infancy.

The Banking Sector The Central Bank of Swaziland and Its Role
The banking sector is regulated by the Central Bank of Swaziland. The Central bank was established in 1979 following the amendment of the Kings Order-in-Council of 1974 that had established the Monetary Authority of Swaziland. The Bank is under the Ministry of Finance but operates independently as a parastatal organization. The Bank consults with the Ministry of Finance before policies on exchange rate and interest rate are implemented.

The Governor of the Bank is appointed by the King, consultation with the Prime Minister, for a term period of 5 years. He heads a Board of Directors that is responsible for the running of the Bank. The Board also serves as an advisor to government on monetary and financial matters. The Bank occasionally holds government securities and Treasury Bills. The Bank harmonises its monetary policies with that of its partners in the CMA, but ensures that monetary stability is achieved to foster economic development in Swaziland. It achieves this by using the discount rate, reserve and liquidity requirements, open market operations and moral suasion. The bank recognizes that the money supply aggregates are under estimated because of the unknown amount of South African Rands in circulation. The reserve requirement for banks is 2.5% of total public deposits, and they are held as deposits with the central bank. The financial markets in Swaziland are made up of the money market and capital market. The dealings on the money market are undertaken by commercial banks and the Central Bank, while on the capital market dealings are done by the Swaziland Stock Brokers ((Ltd), African Alliance of Swaziland Securities (Ltd) and Interneuron Swaziland (Pty) (Ltd). The markets use the following instruments; treasury bills, central bank bills, bankers acceptances and negotiable certificates of deposits on the money market and equities, unit trusts and debentures and bonds on the capital market. The regulatory framework for these markets is the Financial Institutions Order of 1975 and the Treasury Bills and Government Stocks (Amendment) Order of 2003. The Securities Bill is still has been tabled in parliament in June 2009. The money market is dominated by four banks, viz; Standard Bank, Nedbank, First National Bank and Swaziland Development and Savings Bank (SwaziBank) and Swaziland Building Society. The first three banks are, essentially, branches of the parent banks in South Africa. Standard Bank is the largest bank and has ATMs in all the major centers of the country. Swazibank has recently increased its reach by the installation of ATMs in all the major and medium centers of the country.

Exchange rate system

The Lilangeni is pegged at one 1:1 with the South African Rand under the CMA. This arrangement ensures that the local currency has credibility, from the South African Reserve Bank.

Supervision and regulation of financial institutions

The Bank has the responsibility to supervise banks, license new banks and regulate bank activities. A bank incorporated in Swaziland needs to have an initial capital of not less than R15 million. The Bank requires that each bank maintains a minimum capital ratio of not less than 8% of total risk weighted assets. To safeguard the financial markets, the law prohibits banks to advance credit (on or off the balance sheet) of more than 25% of its capital resources to one client or to a conglomeration of entities that are connected, maintain a level of capital relative to the size and nature of the banks liabilities, establish appropriate and prudent policies for the management of their liquidity, make provision for bad debts and to implement the anti-money laundering and combating financing of terrorism act. In recent times, the Central Bank has raised concern over the margin between the central banks repo rate, currently at 6.5%, and the prime rate, currently at 10%, charged by banks. The Bank as arguing that the margin is too wide and banks have to reduce it to make finance more affordable.

Non Bank Financial Institutions (NBFI)

The NBFIs are regulated by the newly established Office of the Registrar of Insurances and Pensions. The Ministry of Trade and Commerce is responsible for all other non bank financial institutions. The insurance industry is dominated by the Swaziland Royal Insurance Corporation (SRIC), Old Mutual and Alexander Forbes. Pension funds were managed in South Africa and easily available for the Swazi economy. This has now changed with all registered insurance companies required to invest 30% of their funds locally. This local investment opportunity will greatly improve the liquidity of the local credit market.

In June 2009 the government tabled the Securities Bill of 2009 in parliament (Swazi Observer, 2009). The bill seeks to regulate trade in securities through the establishment of the Registrar of Capital Markets. The Registrar will also regulate the establishment of collective investment schemes, otherwise known as Ponzi schemes. This follows the mushrooming of such schemes in the country and their banning by the Central Bank. The banned schemes are Channel S club, Aloe Funds and Diamond Africa.

Development Financial Institutions

Swaziland has three development financial institutions. The three are: Swaziland Development Finance Corporation (Fincorp); Small Enterprises Development Corporation, (SEDCO), Swaziland Industrial Development Corporation (SIDC). They were established to advance funding to small and medium enterprises.

Microfinance Institutions
The microfinance sector is not regulated. It is dominated by NGO-linked institutions. Its main target is provision of credit facilities to the unbanked. Their target group is micro to small enterprises.
Table 1: Microfinance Institutions in Swaziland Name Target group Products Sources of Funding Fincorp; est. 1995 Cooperatives, farmer associations, Individuals Inhlanyelo Fund, est. 1999 Individuals through their constituencies. Imbita, est. 1991 Women Savings and loans, training Loans for agriinputs, craft, etc R5,5 million, private Trust Funds Savings, interest payments, donors Office in Manzini, 4 field officers; one for each region. Business and agricultural loans; consumer lending E44million capital from government 1 office in Mbabane, employs business extension officers Tinkhkundla offices. Access

The microfinance institutions have come up to be the one of the most accessible sources of credit for majority of the people. They advance credit from as little as a few hundred rands to a few thousand. In some cases, such as for the Fincorp, they advance credit worth less than R10million for irrigation development and seasonal loans for agriculture. Imbita Women Trust Fund focuses 8

on encouraging women, from both urban and rural communities, to pool resources by saving and then offer credit to those who need it. The savings start from very low amounts (tens of rands) to thousands. Imbita is considered to be one of the most successful microfinance institutions in the country. The MFI face a host of challenges such as low capital base, inadequate investors, poor project monitoring of impacts and poor levels of regulation.

Savings and Credit Cooperatives

The savings based cooperatives in Swaziland have enjoyed a good run of success. They operate in a well organized framework that is led by the apex body, the Swaziland Association of Savings and Credit Cooperatives (SASCCO). The association has a membership base of 55 savings cooperatives.
Table 2: SACCO data for Swaziland (MoAC Annual Report, 2006)

2004 Registered SACCOs Active SACCOs Membership Shares Savings (R) Loans (R) Delinquent portfolio (R) 60 55 35, 602 16,816,079 254,306,350 207,052,462

2005 60 53 38,769 20,244,797 344,072,421 258,067,805

2006 65 55 39,592 20,967,191 368,747,310 295,993,294 12,252,905

The members of SACCOs are employed and fall in the middle and upper income brackets. The low income people benefit by borrowing money for school fees and for agricultural activities.

Money lenders
There are formal money lending institutions, such as Select Management Services (owned by the African Alliance Group), MP financial services and MicroProvident. The funeral house, DUPS has started a money lending service as well. Individuals also act as money lenders. Money lenders are well known for not requiring any of the entry requirements as formal banks, but they charge exorbitant interest rates, as high as 30% per month. This earned them the nickname sharks.

Civil servants are the biggest clients of money lenders as there is a facility to recover the loan directly from their salaries. There is a big demand for the services of money lenders.

4. Accessibility of Formal Banking: Who are the unbanked?

International experience has shown the following lessons with regard to the unbanked: The financially excluded are associated with primarily the unemployed and those living in remote areas. The unbanked are do not effectively participate in the economy The unbanked do not have access to comparative information on prices and products.

Swaziland Banking Access study of 2004

The last study on accessibility of banking was done by Genesis Analytica, 2004, commissioned by FinMark Trust. This data may now be outdated, as there have been major strides in the financial sector of Swaziland since then. There have been a significant increase in the number of ATMs for the major banks and the only local bank, Swazibank, has commissioned its ATM throughout the country. The insurance industry has been opened up to new players and a Commissioner of Insurance established. However, the report noted the low penetration of banking services at that time. It reported that, as at end of 2002, 6.4% of adult population had current account, 23.4% had Savings accounts, 3.8% had loan accounts and 0.5% had mortgages. Whilst the macroeconomic conditions have changed, this data may not have changed much due to some under lying fundamentals in the financial sector. Most people, as indicated in the study, are worried that in the bank their money is taxed and does not grow quick enough. They are not able to get the money quick enough when they need it and it costs money to go to the nearest branch or ATM to get my money. When they get to the branch or ATM, they wait in a queue for service. They have to produce identity documents and proof of residents to open an account and are forced to keep a minimum account balances. The FinMark study (2004) identified five generic determinants of access as a) affordability, the direct transaction and maintenance costs incurred using the financial service, as well as costs 10

incurred in getting to the services; b) regulatory barriers, regulatios and laws that may hinder people, unintentionally, from accessing financial services.; c) eligibility barriers, harsh eligibility criteria; product features, implicit exclusions due to product design; and d) service characteristics, implicit exclusion due to service characteristics and capacity to provide appropriate service (language, hours of operation). Affordability: The FinMark study found that 88.3 % of households will not be able to afford the cost of banking. This is the proportion of people who earn less than R3,000 per month. Regulation: The need to identify the residents of bank clients, there is a need to show positive proof of your residence. With 75% of the population living in rural areas, with no proof of residential address, most people will be excluded from having bank accounts. However, the banks are accepting a traditional notice from the Chief to witness that one is a resident of the area. Women were excluded from entering into any contract without the consent of her father, husband, or other male family member (as she had the legal rights of a minor). This has since changed with the adoption of a new constitution in 2004. Eligibility: the need of a payslip or some formal employment proof was restrictive. These barriers were imposed by banks as a way of market selection. With 20% of adults formally employed, 80% of the population is excluded from banks. Some banks do not require a minimum salary to open a savings account but will require a payslip and certain minimum balance to open a loan account. Service characteristics and capacity: most banks have service characteristics that are much less of a bother to clients than the above criteria. The major challenge to access to banking, in Swaziland seems to be affordability. The majority of the population still has to travel to urban centers for banking services. Eligibility was the next major challenge, mainly driven by the need to produce a payslip and proof of residence. It can be concluded that formal banking is not easily accessible to the majority of the population in Swaziland. There is a need to reduce transaction costs and develop appropriate products for the poorer members of the community.

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5. Improving accessibility to Finance for the unbanked in Swaziland

Use of the post office and large retailers
Currently, Swaziland Post and Telecommunication Corporation does not offer any financial services. This is a lost opportunity given the wide network of branches, in remote places that the post offices have. They can reach the unbanked and provide basic financial services, such as savings and payments and receiving remittances. Examples of successful postbanks are in South Africa, Namibia and Zimbabwe and Benin (World Bank, 2007). Large retail shops have a wide reach in Swaziland. Shoprite, Evukuzenzele, Luck 7, Spar and others have shops in some remote rural places. They can, immediately, offer limited depository and payments services and expand the suite of services as they mature.

Promote Microfinance Institutions

Improve the regulatory framework for microfinance institutions by enacting appropriate legislation. An example to follow is the Microfinance Bill in Mozambique, which seeks to protect the clients and strengthen the institution to reach its target. Regulation will also allow the MFIs to use savings for own lending, as they are not allowed to do so now. Banks can act as wholesale fund providers for the MFIs. Wholesale funds can also be advanced in local currency by Development Institutions such as African Development Bank or the Development Bank of Southern Africa.

Improve competition between banks

The report on competition in South African Banks (2004), noted that completion is spur of efficiency, innovation, consumer choice, quality of products and services and low price. It notes that Because of the central role of the banking system in the economy, the role of competition (and the costs of its impairment) is particularly important in banking. Competition can be achieved by allowing more players in the finance sector, both large and small. The regulatory framework should not make it difficult for new banks to open but at the same time protect consumers from bogus entrepreneurs. At the moment, there is a high concentration of banks in Swaziland, with only four banks operating.

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Critical factors for provision of low-cost savings accounts, as listed by the task team on Competition in South African banking: Low cost opening, closing and maintenance of accounts Critical mass in the number of accounts Ability to levy transaction fees for cash withdrawals Rate of opening and closing accounts Minimizing infrastructural costs The number of transactions over the account rather than the amount of money in the account. Keep cost low by extracting synergies with existing business

The report lists factors affecting the unbanked in South Africa. This list is relevant for Swaziland as the three major banks are from South Africa. The fees and charges attracted by entry level products are a disincentive to low income users. This finding is the same as from the FinMark study of 2004, for Swaziland. This is hardly surprising as three out of five banks in Swaziland are from South Africa. Combination of low interest returns and high fees means savings can be significantly eroded. Those unfamiliar with ATM and internet technology pay a premium with over-thecounter transactions. Credit available to low income individuals, such as micro-loans and retail credit, is substantially more expensive than mainstream products. Promoting banking by the unbanked should address these issues. Make banking attractive to the bottom of the pyramid, as well.

Promote cellphone and telephone banking

With the wide spread of cellphones, cellphone/telephone banking seems to be the next big revolution in access to financial services. It can be used to make payments and trade securities with on-line-trading facilities. The number of trips to the bank will be reduced as routine transactions can be done by phone. 13

An IFAD funded project is piloting the use of cellphone technology to reach the currently unbanked. The project will work with MFIs to target the poor rural communities and advance loans for agricultural purposes, while promoting savings.

6. Conclusion
Access to financial services for the low income and those in the informal sector is poor in Swaziland. The majority of the people live in rural areas where they do not have proof of income, proof of residential address and have no easy access to registration offices for identity cards. These factors prohibit them from entering the formal financial sector. For those who manage to enter, the cost of transactions is high, making it difficult for them to keep accounts open for long. The products offered by financial institutions, both banks and nonbanks are not tailor made for the poor. There is a strong need to promote other innovative forms of financial services that better serve the unfinanced, both individuals and SMEs. This can be done by taking advantage of technological advancement in ICTs and promote cellphone and telephone banking, to reduce transaction costs. Microfinance institutions should be regulated to better protect the client and assist the institution to better reach the unfinanced. The regulation will allow the MFI to ustilise mobilized funds to advance as loans. As is recognized, access to finance is an absolute necessity for economic growth and thus, Swaziland should strive to have the proportion of its population with access to fianancial services increase from the current 20%.

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7. References
Calderisi, R.; The trouble with Africa: Why foreign aid isnt working; Yale University Press, 2007. Collier, P. and Gunning, J. W.; Explaining African Economic Performance; Journal of Economic Literature; Vol XXXVIII (March 1999), pp 64-111. Genesis Analytica (for FinMark Trust); Measuring Access to Financial Services in Swaziland, 2004 The Falkena Report; Competition in South African Banking: Task Group Report for The National treasury and the South African Reserve Bank, 2004. Kolb, R. and Rodriguez, R. J.; Financial Institutions, Blackwell Business, 1996. Sachs, J.; The End of Poverty: How we can make it happen in our lifetime; Penguin Books, 2005. Samuel, S. and Mawadza, C.; Microfinance and Poverty Reduction in The SADC Region: A case for Swaziland, 2007 Viney, C.; Financial Institutions, Instruments and Markets; 3rd edition, McGraw Hill Companies, 2001. World Bank, Africa Region; Making Finance Work for Africa; 2006. .

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