Mbabane, Eswatini – The Central Bank of Eswatini (CBE) has officially announced the issuance of a provisional banking license to Letshego Eswatini Bank in-organisation (LEB), marking a significant milestone in the expansion of Eswatini’s digital financial landscape. Currently operating as Letshego Financial Services Eswatini, the institution has been greenlit to transition into a fully operational digital bank within the Kingdom.

Granted under the auspices of the CBE’s licensing regime for new entrants into the banking space, the provisional license allows LEB to prepare and align itself for full operations within a period not exceeding 12 months. During this time, the bank-in-organisation is expected to meet all operational, structural, and regulatory readiness requirements.

Comprehensive Evaluation and Key Considerations

The Central Bank’s decision follows a rigorous and comprehensive assessment process conducted in line with local laws and regulatory frameworks. LEB first submitted its application on 17 October 2024. After a series of engagements and evaluations, the CBE determined that LEB had met the minimum criteria for provisional licensing.

The Bank highlighted several key factors behind its decision:

Document Validity: All submitted documentation complied with CBE’s standards.
Proven Financial Stability: Letshego’s strong track record and financial health supported its case.
Experienced Management Team: The leadership team was praised for its expertise in banking, fintech, and governance.
Strong Capital Structure: LEB met and exceeded the capital requirements under Section 20 of the FIA.
Understanding of Local Needs: LEB demonstrated awareness of the unbanked and low-income segments, positioning itself as a solution-driven digital banking alternative.
Viable Business Model: Its strategy and SWOT analysis revealed cautious optimism and competitive potential.
Public Interest and Inclusion: The bank aims to serve underserved populations and champion corporate social responsibility.

Driving Financial Inclusion

LEB’s entry into the market is expected to spur innovation in digital financial services, particularly among underbanked communities. With a strategic focus on accessible savings products, competitive interest rates, and community-driven services, LEB aligns with national efforts to deepen financial inclusion across Eswatini.

In a statement, Phil Mnisi (PhD), Governor of the Central Bank of Eswatini, emphasized the Bank’s commitment to work closely with LEB and other stakeholders to ensure compliance with all conditions leading to the issuance of a full banking license.

“We congratulate LEB on this milestone and look forward to the value they will bring to the nation’s financial sector and broader economy,” he said.

Next Steps

LEB now enters a critical transition phase, during which it will finalize operational structures, enhance regulatory compliance, and prepare for formal market entry. Updates regarding its progress toward full licensing will be announced by the Central Bank in due course.