Mbabane: Despite setback and delay, the Central Bank governor Phil Mnisi is hopefully that sooner or later Emaswati will enjoy the benefit of instant payment that will enable funds to be transferred from one financial institution to another, within a click. Last year the bank launched the Domestic payment switch, a project that was set to cost the around E80 Million.
The Domestic National Switch will enable transacting parties to conduct transactions efficiently. Currently, emaSwati, both individuals and business alike are not able to transact instantly because the country does not have its domestic switch, therefore settlement of transactions are done in the Republic of South Africa.
For instance, payments made through Lightspeed Point of sale (POS) are cleared in South Africa. Simply put, when one swipe at a speed point, the intended payee doesn’t receive the money instantly because the transaction has to be cleared in South Africa and it comes with additional costs to the person initiating the transaction. However, with the Domestic National Switch in operation, all transactions will be done immediately.
Fast forward to today, the system is still yet to be enjoyed by many emaswati. Independent News Editor in Chief Mfanasibili Sihlongonyane asked the Governor to update the nation on the progress made about the Domestic National Switch payment. This was during the press conference where the governor was updating the nation about progress made on the new multibillion head office structurew that the bank is constructing at Ezulwini .
When responding to the question “We have laid the ground, some financial institutions have already in the system and some are still dealing with internal processes,” said the Governor.
“ Eswatini Bank , Swaziland Building Society , MTN Mobile Money, InstasCash are already in the system. If you transact with this institution, you enjoy the benefit to get your cash on a click, said Governor Phil Mnisi.
He continues to say as a Central Bank they are working hard to make the other bank to be part of the project so that Emaswati will enjoy this service which are also cheaper.
Domestic National switch payment
Similarly, with the coming into play of the domestic national system, interbank transactions will also become cheaper and instantly. The news about the introduction of the Domestic national switch was announced by the Central Bank Governor Dr Phil Mnisi at Mavuso Trade and Exhibition Centre when the Bank was introducing an improved E200 note last year.
During the lauch of the Domestic National switch last year the Governor of the Central Bank Phil Mnisi said the project is one of the projects which are close to his heart because it is good for the country and fulfils His Majesty King Mswati III’s Vision to advance Eswatini to a first-world status which we so desire. “It is not a cheap project; we are investing close to E80 million in it because we want to improve the payment system in the country and that will attract more investors and will inspire confidence in our economy,” Mnisi said.
Mnisi reiterated that the National Domestic Switch which means will enable all domestic transactions to be cleared in Eswatini. “You will be able to pay people instantly unlike what is happening now where money must go to South Africa to be cleared first before it could be sent to the recipient,” Dr Mnisi said.
He went on to say that with the coming launch of the domestic switch, emaSwati, both individuals and businesses will be able to pay using other platforms and Apps including PayPal “because we will have the platform which is the Domestic National Switch which will make payments to be cleared in the country instantly.” Mnis highlighted that the national switch will link the country internationally directly from Eswatini, adding that it will do away with the clearing of transactions through South Africa. “We will settle in the country and have direct connectivity to the world from Eswatini. We are already at the implementation stage and we are hoping in the next 3 years it will be fully operational,” he said.
Mnisi said the system will start to be rolled out next year this year 2025 and it would be fully functional in 2026.
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