Swazi Observer

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GOING FORWARD: LIQUIDITY RISK MANAGEMENT KEY TO SBC

By KWANELE DHLADHLA | 2020-09-30

With the current uncertainty mainly emanating from COVID-19, despite the consistent loan repayment collections in Lesotho and Eswatini, liquidity risk management remains a key priority for the SBC Limited Group.

SBC has emphasised that that it “continues to maintain and ensure the group has sufficient cash resources to meet all liquidity requirements for the foreseeable future.”

The company promised that the safety and well-being of their customers and employees had been and remained, of utmost importance.

“Despite the obvious risks, our employees have shown great fortitude and commitment as they have continued to support and service our customers under very difficult conditions,” said SBC.

It was mentioned that events over the past six months had been unprecedented. COVID-19 has already had a profound impact globally and there remains much uncertainty as to the ultimate human and economic toll.

Changed

SBC recounted that the world changed fundamentally and, to some extent, permanently, in a matter of weeks.

It was stated that while the pandemic has created distress and anxiety for many of their staff and clients, it had also created new opportunities, specifically the opportunity to accelerate change.

SBC said at the time of writing this report, limited lockdowns in both Lesotho and Eswatini remain in place and a possible renewed threat of further outbreaks of the pandemic remain a risk.

As a group operating in sub-Saharan Africa, SBC noted the need to adapt to remain relevant.

Uncertain

“While the remainder of the financial year remains uncertain given the extent of the current lockdown measures and the associated risks, we remain committed to delivering a positive result for all our stakeholders,” said SBC.

In contrast to the current environment, SBC said they were very confident that lockdowns would eventually be rolled back, and economies will reopen.

SBC mentioned that the International Monetary Fund IMF forecasted global real gross domestic product (GDP) to contract by 4.9 per cent, in sub-Saharan Africa by 3.2 per cent and South Africa by 8.0 per cent in 2020, followed by a recovery of 5.4 per cent 3.4 per cent and 3.5 per cent, respectively, in 2021.

Lender

With a focus on the 2021 recovery, SBC said management would continue to work with all their stakeholders, in a responsible manner, to ensure that they remain the primary lender in the market and to take advantage of the much needed recovery phase.

“The opening of the Eswatini economy will also provide the required impetus to drive our rental offering in Malkerns Square,” added SBC.

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