Global intermediaries opened the Swaziland market 10 to 15 years ago, but since then there has not been any foreign investor activity in the market outside of South African institutions. The Swaziland Stock Exchange (SSX) still comprises of 100% domestic investors. In essence the subcustody business in Swaziland exists, but is not active, says Lindiwe Manane, head of investor services at Standard Bank Swaziland.

There has however been development in the local market, particularly in terms of investments from local institutions. The formation of Swaziland’s Financial Services Regulatory Authority has seen an increase in adherence to the rule that states local insurance and retirement funds must invest 30% of their capital in the local market.

“On the back of this increased activity we have seen the formation of a securities industry forum in 2014, comprising of sub-custodians, investment advisors, brokers and the Central Bank,” says Manane. The Central Bank of Swaziland has also indicated its intent to establish a CSD. Standard Bank is the leading player in the sub-custody business though a further player has entered the custody market.