Small and focussed...

Swaziland is a landlocked country of around 1.2 million people and 17.363 square kilometres, bordered by Mozambique and South Africa.

Swaziland’s economy is largely dependent on agriculture (mainly sugar) as a primary sector activity and agriculture also provides inputs for the manufacturing sector. The banking sector is relatively well developed with four commercial banks.

The Swaziland Stock Exchange opened its doors in 2000. The small exchange has five listed shares. The market capitalisation is about E1.2 billion with the local currency pegged to the South African Rand at par.

The exchange is dominated by the Royal Swaziland Sugar Company.

Local insurance market conditions are presently hardening with the only insurer, Swaziland Royal Insurance Corporation, imposing excesses and minimum rates on asset classes of business. Many of the larger risks have been surveyed and recommendations for risk improvement made.

The long awaited Insurance Bill is, once again, before Parliament and consensus is that it may finally be passed this year. That may lead to applications from other insurers to operate in the Kingdom and will create a Registrar of Insurance for the Industry.

Author: Keith Dukes of Alexander Forbes’ business in the area trading as Tibiyo Insurance Brokers.