Mbabane – The Minister of Finance, Neil Rijkenberg, together with UNDP Resident Representative, Henrik Franklin, this morning officially launched the Blended FinScope MSME Survey Eswatini 2023.
The according to the objectives of the study, among major outcomes of the study was to assess the size and scope of micro, small and medium enterprise (MSMEs) in Eswatini.
The launch took place at the Hilton Garden Inn this morning and Franklin in his remarks noted that UNDP’s engagement was a testament to their unwavering commitment to developing micro, small, and medium enterprises (MSMEs) and their dedication to supporting private sector development in the Kingdom of Eswatini.
“The contribution of MSMEs to economies globally is quite significant. According to the World Bank Group, in 2019, in countries where a credible data source was available, MSMEs accounted for 78 percent of employment, ranging from 50 to 90 percent across regions. They also contribute significantly to the value added to an economy, particularly in emerging economies, but at a lower magnitude than their contribution to employment.
Similarly, in Eswatini, the findings of the 2017 FinScope survey highlighted that MSMEs are a crucial driver of employment, with approximately 92,600 people working in this sector. The survey further highlighted that many businesses operate informally because of barriers to accessing formal financial services. In response, in partnership with UNDP, the Centre for Financial Inclusion (Cfi) set out to understand the obstacles that lead MSMEs in Eswatini to operate informally. This prompted the Blended Finscope MSME Survey we are launching today.”
He said the Blended Finscope MSME Survey not only focuses on financial inclusion but also looks at the structure of informality in Eswatini and its drivers. This dual focus necessitated a change in approach, which was initially only household-based to also be enterprise-based. He expressed appreciation to the Central Statistics Office, and FinMark Trust for their flexibility in adapting the methodology despite the sampling challenges. Such innovative partnerships, he said, transcend the usual and hold the key to ground-breaking solutions accelerating progress.
“MSMEs are close to our hearts. The UNDP Strategic Plan (2022-2025) emphasises the private sector’s critical role, particularly the MSME sector, as a driving force for economic growth and employment creation. By leveraging the potential of MSMEs, UNDP aims to support the Government of Eswatini in stimulating inclusive job creation (especially for youth, women and persons with disabilities), enhancing productivity, and contributing to sustainable development. This approach aligns with the broader goals of poverty reduction, inclusive economic growth, and achieving the Sustainable Development Goals (SDGs) through private sector engagement,” he said.
According to Franklin, early this month, he was privileged to join the Minister of Commerce, Industry and Trade, Manqoba Khumalo, to launch the new MSME policy, demonstrating UNDP’s dedication to policy intervention with a strong emphasis on programmatic actions that benefit MSMEs. In addition, UNDP continued to collaborate with the Ministry of Commerce, Industry and Trade to implement the Citizen Economic Empowerment Act of 2023 fully, further demonstrating their commitment to supporting the government to create an enabling environment for the MSME sector.
“Hon. Minister, I’m happy to report that the Ingelo Local Certification Scheme supported by UNDP and launched by Hon. Minister Khumalo last November will soon be fully implemented. The scheme aims to promote high quality production capacity of local MSMEs, so they initially can access domestic markets, while paving the way for ultimately accessing and being competitive in the African Continental Free Trade Area (AfCFTA) and global markets,” said Franklin.
He added, “UNDP is involved in several initiatives aimed at fostering entrepreneurship and livelihoods. In November 2024, we celebrated the graduation of a group of MSMEs incubated under the RSTP incubation programme. These startups received seed funding from UNDP to develop their business models, and they have now grown to become employers, and some are export based businesses. The ongoing AgriFinTech Accelerator, implemented in partnership with FAO, will contribute towards increasing access to finance through innovative financing mechanisms. Finally, with financing from the European Union, we are also catalysing renewable energy access and transition amongst MSMEs, contributing to decarbonising the economy while creating jobs.”
He said considering the global shifts in foreign development policies, countries like Eswatini must establish their own identity in the global market. Development finance is evolving, and it is imperative for countries to intentionally strengthen their domestic economic policies to promote private sector development as the engine of inclusive and sustainable economic growth. Access to finance for MSMEs is at heart of that discourse.
Diagnostic reports, such as the Blended FinScope MSME survey that we launch today, he added, play a vital role in this process by providing detailed insights into the economic landscape. These findings enable the government and development partners to craft targeted support programs that address the most pressing needs, ensuring that resources are allocated effectively to foster sustainable growth and development. By prioritising domestic economic resilience, Eswatini can better navigate the changing global development finance landscape and achieve long-term prosperity.
The UNDP rep concluded that the removal of structural barriers that impede the growth of MSMEs, particularly in terms of access to finance, necessitates a collaborative effort between the government and the private sector. He said it was essential that both bank and non-bank financial institutions were encouraged and enabled to develop innovative financial products and services tailored to the needs of MSMEs. By fostering a supportive regulatory environment and promoting public-private partnerships, a more inclusive financial ecosystem can be established that empowers MSMEs to thrive.
All stakeholders, he noted, must act as one to avoid duplication of tasks and ensure that our efforts are coordinated and efficient. This collaborative approach, he said, will not only enhance the country’s economic resilience but also drive sustainable development and job creation, ultimately contributing to a prosperous Eswatini.
