Background

A move towards a formal structure for capital markets development in Swaziland goes back 12 years (1989) when a working party, under the direction of the Central Bank, was commissioned to examine if there were economic benefits to be derived from the establishment of a stock exchange. The working party concluded that there was indeed a need and an opportunity for such a move; and proposed, as a first step, the formation of a stockbroking company, which would be licensed under existing banking legislation pending the drafting of a securities law.

For eight years the stock market operated as an over the counter-single broker facility. It was not until July 1999 that a fully-fledged stock exchange, the Swaziland Stock Exchange (SSX), was inaugurated. Exchange operations are conducted under the supervision of the Capital Markets Development Unit (“the Unit”) of the Central Bank, which has regulatory oversight over the operations of the market.
The Unit was formed in 1999. It does not only oversee the operations of the Exchange but authorises and supervises collective investment schemes and fund managers. When the legislation is eventually passed, the Unit will also assume responsibility for the licensing, registration and regulation of dealers and their representatives, investment advisers and their representatives and central securities depositories.

Structure