MBABANE – Not a single local business has accessed Eswatini’s Export Credit Guarantee Scheme (ECGS) since its inception, raising concerns about the readiness of local entrepreneurs to tap into international trade.
This was revealed on Thursday, June 26, by Skhumbuzo Mbuyisa, Senior Manager for Business Incubation at the Small Enterprises Development Company (SEDCO), during the MTN Eswatini Q2 Business Connect seminar held at Mountain Inn in Mbabane.
The session, themed “Position Your Business for Trade and Export,” featured presentations from Mbuyisa, MTN Eswatini CEO Wandile Mtshali, and Black Mamba Foods’ Claudia Castellanos. The event focused on helping local businesses understand how to scale into export markets.
Mbuyisa told delegates that despite years of awareness campaigns and government support, the ECGS has seen zero applications. Administered by the Central Bank of Eswatini and backed by the Ministry of Commerce, Industry and Trade, the scheme was created to support small and medium enterprises (SMEs) looking to export.
“It’s June, and uptake remains at zero,” Mbuyisa said. “This reflects deep issues in market access, trust between banks and SMEs, and a general lack of export readiness.”
He explained that the ECGS was designed to de-risk loans for exporters by assuring banks that up to 90% of the loan would be guaranteed, even in cases of default. The scheme supports both pre-shipment needs such as inputs and packaging, and post-shipment logistics and invoice financing.
Despite the backing, banks remain cautious. Mbuyisa said entrepreneurs often don’t meet the compliance standards, struggle with export documentation, and lack proper financial records—factors that make banks wary.
He pointed to technical bottlenecks and knowledge gaps as key reasons why banks are still hesitant to lend, even under the guarantee. “The banks are scared. Even with the 90% guarantee, they worry about trust and documentation. And entrepreneurs, especially those in rural and peri-urban areas, often don’t know how to navigate this.”
He added that beyond business models and collateral, many financial institutions base decisions on personal credibility. “Banks fund people, not just businesses,” Mbuyisa said. “That means entrepreneurs need to work on how they present themselves and build trust. Right now, that’s the missing link.”
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