Mbabane- Eswatini has been positioned among the first African countries to pilot a transformative continental initiative aimed at unlocking the full potential of small and medium enterprises (SMEs), following a strategic partnership between Business Eswatini and the AeTrade Group.
The development comes after a high-level meeting held at the Business Eswatini “War Room” in Emafini, where the AeTrade Group formally identified the organisation as a key stakeholder in rolling out its country programme. The initiative, which operates under an African Union mandate on financial and digital inclusion, will initially be implemented in Eswatini, Ethiopia and Rwanda.
At its core, the programme seeks to tackle long-standing barriers hindering SME growth across Africa, particularly limited access to business expertise, markets and affordable financing. Despite SMEs requiring an estimated $330 billion annually, many remain excluded from formal financing systems due to their perceived high-risk status.
AeTrade Group Chief Executive Officer, Mr. Mulualem Syoum, said this perception has led to high interest rate facilities that ultimately stifle SME growth.
“Many financial institutions see SMEs as high risk and therefore can only finance them through high-interest facilities, which in turn cripples their development,” he said.
To address this, the AeTrade Group has introduced a comprehensive framework focused on “de-risking” SMEs. The approach includes financial literacy training, improved access to markets, and the development of pre-approved credit scoring systems, alongside a structured four-year graduation programme to guide businesses toward sustainability.
A key component of the initiative is the Sokokuu.Africa Integrated Ecosystem, a digital platform designed to connect African producers directly with African consumers. The platform is positioned not as a competitor to local businesses, but as a centralised marketplace to enhance visibility and expand reach.
“This is a mall, not competition,” Syoum emphasised, noting that the platform aims to promote intra-African trade by showcasing locally produced goods across the continent.
However, Business Eswatini Chief Executive Officer, E. Nathi Dlamini, raised concerns about how the SME sector could be effectively de-risked, prompting AeTrade to highlight the need for a unified, blended finance model.
“The vision is to move away from fragmented, silo-based approaches and instead create a single, coordinated funding platform. This requires a mindset shift from viewing SMEs as beneficiaries to recognising them as viable commercial partners,” Syoum explained.
The initiative also explores alternative funding sources, including Africa’s pension funds, which collectively account for approximately $1.8 trillion in annual investment. AeTrade believes that redirecting even a small portion of this capital toward SMEs could significantly reshape the continent’s economic landscape.
Eswatini’s participation is further strengthened by its recent inclusion as a founding member of the Africa Strategic Investment Alliance, a move expected to enhance investment coordination and accelerate implementation of the programme.
For local businesses, the partnership presents an opportunity to elevate “Made in Eswatini” products beyond domestic markets and position them competitively across Africa. It also aligns with the objectives of the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade.
With more than 850 digital platforms currently operating across the continent, many focused on imports, the AeTrade model aims to reverse this trend by prioritising African-made goods and strengthening regional trade networks.
Beyond economic growth, the programme is expected to create opportunities for young people, who will be engaged as trade advisors within the ecosystem, opening pathways into the growing field of intra-African commerce.
For government, the initiative complements national development priorities and aligns with the African Union’s Agenda 2063 vision for inclusive and sustainable growth.
Discussion about this post