Mbabane – Eswatini has signed an agreement with the Africa Strategic Investments Alliance (AFSIA), paving the way for a new programme expected to improve access to finance for small businesses and expand trade opportunities across the African continent.
Minister of Finance Neal Rijkenberg announced that Eswatini, one of AFSIA’s founding members, has completed the processes required to launch the initiative locally.
According to the minister, the governmentmf has committed about US$5 million over several years towards the programme, which will focus on improving the way small and medium enterprises (SMEs) access funding.
Rijkenberg said the initiative differs from conventional lending models by looking beyond financing alone and focusing on the entire value chain of a business.
He explained that under the programme, support would not only be provided to entrepreneurs seeking funding, but would also consider factors such as access to markets, processing facilities and buyers for products.
“If you want to grow pigs, it is not only about providing finance. It is also about ensuring there is an abattoir, a market and an off-taker for the product,” he said.
The minister said experiences in other African countries, including Ethiopia, showed that businesses are more likely to succeed when funding is linked to broader market opportunities.
He disclosed that the memorandum of understanding between Eswatini and AFSIA has been approved by the Attorney General’s Office and Cabinet and has now been signed.
AFSIA is currently preparing to establish an office in Eswatini, after which further details on funding opportunities and application procedures will be announced.
Beyond SME financing, the initiative is also expected to facilitate trade opportunities for businesses of all sizes.
Rijkenberg said the programme would help local companies access markets across Africa under the African Continental Free Trade Area (AfCFTA), allowing businesses to sell products more easily throughout the continent.
He added that new payment systems are being developed to facilitate trade using African currencies.
Government expects the initiative to create new opportunities for entrepreneurs and businesses seeking to expand their operations beyond Eswatini’s borders.
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