Mbabane– Poor planning for seasonal demand is costing Eswatini’s fashion businesses revenue and limiting their ability to grow into bankable enterprises, Standard Bank Eswatini Head of Business and Commercial Banking Mlamuli Hlatshwayo has warned.
Speaking during the Luju Fashion Indaba, Hlatshwayo said while many fashion entrepreneurs possess exceptional creative talent, they often fail to prepare their businesses for predictable periods of high demand such as weddings, cultural ceremonies, festivals and year-end celebrations.
He said this lack of planning creates unnecessary operational challenges that prevent businesses from maximizing sales opportunities and demonstrating the consistency required by financial institutions.
“Planning is also another challenge that we see in businesses,” Hlatshwayo said. “Sometimes businesses struggle to plan for seasonality and those types of things, and that really challenges them,” he added.
He explained that businesses which forecast demand well in advance are able to secure raw materials early, negotiate better prices with suppliers, organise production schedules and manage their working capital more effectively. Those that fail to do so often struggle to fulfil orders when demand peaks, resulting in missed sales and dissatisfied customers.
Hlatshwayo said effective planning also plays a significant role in determining whether a business can attract financing. Financial institutions look beyond a company’s products and examine how well it manages its operations and prepares for future growth.
He noted that banks increasingly assess management capability, financial discipline and business sustainability when considering loan applications, rather than focusing solely on collateral.
The banking executive further urged entrepreneurs to strengthen their understanding of their businesses’ financial performance by distinguishing between revenue and profit.
He said many business owners celebrate increasing sales without fully understanding whether they are making enough profit after deducting production and operating costs.
“You need to understand your profitability versus income because once you’ve received the income, you need to deduct your costs so that you know how much profit you’re actually making,” he said.
Hlatshwayo also stressed the importance of maintaining accurate financial records, saying businesses that cannot account for their costs, inventory and expenses often struggle to convince lenders that they are ready for expansion finance.
He added that entrepreneurs should first establish a reliable customer base before seeking funding.
“Oftentimes businesses are looking for funding, but they don’t yet have clients. You need to understand: do you need clients, or do you need funding?” he asked.
He further encouraged fashion entrepreneurs to collaborate with others in the industry instead of relying solely on their individual technical skills.
According to Hlatshwayo, partnerships enable businesses to increase production capacity, improve efficiency and build the economies of scale needed to compete in larger markets.
He also called on entrepreneurs to improve their financial literacy, saying they do not need to become accounting experts but must understand the key financial drivers of their businesses, including cash flow, margins, costs and working capital.
Hlatshwayo said as Eswatini seeks to expand its creative economy and develop export-ready enterprises, combining creativity with sound business management will be essential for sustainable growth.
He noted that financially disciplined businesses are better positioned to access bank finance, attract investors and create long-term employment opportunities while contributing to the country’s economic development.
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