Mbabane: Eswatini has been recognised for its progressive gender-responsive policy framework aimed at strengthening women’s financial inclusion and expanding access to finance for women-owned micro, small and medium enterprises (WMSMEs).
This isaccording to a new case study under the Alliance for Financial Inclusion (AFI).
The case study, titled Access to Finance for Women’s MSMEs in Eswatini: A Case Study from Enabling Financial Policy, Regulation and Inclusive Financial Ecosystems, forms part of AFI’s Gender Inclusive Finance workstream in collaboration with the African Development Bank’s Affirmative Finance Action for Women in Africa project. It is included in a second series of 20 case studies focusing on policy and regulatory approaches to women’s financial inclusion across Africa.
The report highlights that women remain central to Eswatini’s entrepreneurial landscape, owning approximately 60 percent of MSMEs, which play a critical role in job creation and livelihoods, particularly in manufacturing, wholesale, and agriculture. However, the majority of these enterprises remain informal and survivalist in nature, limiting their growth potential and access to formal financial systems.
Despite women’s dominance in the MSME sector, access to finance remains a major barrier. The case study notes that in 2024, 74 percent of firms with female top managers identified access to finance as a key constraint, reflecting persistent structural challenges that continue to limit business expansion and formalisation.
Eswatini’s policy response has been anchored in a range of national frameworks designed to promote gender equality and financial inclusion. These include the Revised National Gender Policy, the Gender Inclusive Finance Roadmap, and the National Financial Inclusion Strategy (NFIS II 2023–2028). Together, these frameworks aim to reduce structural barriers and expand women’s access to appropriate financial services across their economic lifecycle.
Complementary legislation, such as the Citizen’s Economic Empowerment Act and the Revised MSME Policy, has also been introduced to support business formalisation and strengthen the MSME ecosystem. According to the case study, these interventions are designed to create a more enabling environment for women entrepreneurs and improve their integration into the formal economy.
Targeted financial sector reforms have also contributed to progress. These include the introduction of tiered Know Your Customer (KYC) accounts, no-frills banking products, and the expansion of digital financial services. The measures have helped reduce entry barriers for women who previously struggled to meet stringent banking requirements.
In addition, government-backed funding schemes, tailored credit facilities, and partnerships with development agencies have been introduced to improve access to finance for women entrepreneurs. Institutional support systems, including mentorship programmes and market access initiatives, have further strengthened the entrepreneurial ecosystem for women-led businesses.
However, the report underscores that significant challenges remain. High levels of informality, limited access to affordable credit, and structural inequalities continue to restrict women’s participation in the formal financial sector. The case study emphasises that these barriers are not necessarily reflective of low demand for financial services, but rather of systemic constraints within the financial ecosystem.
One of the key structural challenges identified is the issue of collateral. While Eswatini’s Constitution provides for equal land ownership rights, women rarely hold land titles in their own names due to cultural norms and affordability constraints. This limits their ability to use property as collateral for loans.
The absence of a comprehensive movable assets registry further exacerbates the problem, preventing many women from leveraging alternative forms of collateral. As a result, many WMSMEs are excluded from traditional lending models that rely heavily on secured assets.
To address these challenges, the Gender Inclusive Finance Roadmap proposes reforms aimed at simplifying collateral requirements and broadening the definition of acceptable security for loans. The initiative seeks to make financial products more accessible to women entrepreneurs who lack traditional forms of collateral.
Eswatini’s progress in financial inclusion is also supported by its participation in international frameworks. The Ministry of Finance and the Central Bank of Eswatini are members of the Alliance for Financial Inclusion and have committed to global initiatives such as the Maya Declaration and the Denarau Action Plan.
Under these commitments, Eswatini has set several targets, including the development of the Gender Inclusive Finance Roadmap, the expansion of sex-disaggregated financial data collection, and improvements in access to finance for women entrepreneurs. Some of these targets have already been achieved, while others remain ongoing.
The country has also strengthened its financial data systems. According to the report, sex-disaggregated data from banks has been successfully developed, while efforts are ongoing to extend data collection to non-bank financial institutions. These measures are intended to improve evidence-based policymaking and better track progress in women’s financial inclusion.
Eswatini has also recorded measurable gains in financial access. The case study notes that 87 percent of adult women now use at least one financial service, largely driven by the expansion of digital financial services. However, gaps remain in the depth and quality of financial inclusion, particularly for women operating informal businesses.
At a regional level, Eswatini recorded the largest improvement among African countries in the Social Dimension of the 2023 Africa Gender Index, with a score increase of +0.367, signalling progress in gender equality outcomes.
The report concludes that while Eswatini has made significant strides in advancing gender-responsive financial policies, sustained progress will depend on continued collaboration between government, the private sector, and development partners. It also highlights the importance of strengthening data systems, improving implementation of existing policies, and ensuring that financial inclusion strategies remain responsive to the needs of women entrepreneurs.
As Eswatini moves forward with its National Financial Inclusion Strategy II and Gender Inclusive Finance Roadmap, the focus remains on building an inclusive financial ecosystem that enables women to participate fully in economic growth and entrepreneurship.
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