Mbabane- Eswatini’s young entrepreneurs are becoming an increasingly important force behind the country’s economic growth, with new figures showing that people under the age of 35 now own 28 percent of all Small and Medium Enterprises (SMEs).
The statistic, contained in the State of the Youth Report 2026, points to a growing shift in the country’s business landscape as more young people move away from relying solely on formal employment and instead create businesses that generate jobs, stimulate innovation and contribute to national development.
The report, launched by Prime Minister Russell Mmiso Dlamini last week, also reveals that 73 percent of Eswatini’s population is under the age of 35, presenting what he describes as a significant opportunity to build an entrepreneurial economy powered by young innovators.
This, the increase in youth-owned businesses is encouraging because SMEs remain the backbone of most developing economies. As more youth-owned enterprises expand, they are expected to create employment opportunities, increase household incomes and contribute to government revenue through taxes.
Commenting on the report fundings, Director of SMEs, Mluleki Dlamini, said the findings demonstrate that government interventions aimed at supporting youth entrepreneurship are beginning to produce measurable results.
He said government continues to strengthen partnerships with development partners and the private sector to improve access to finance, markets, digital innovation and business development services for young entrepreneurs.
A major contributor to this growth has been the Youth Enterprise Revolving Fund (YERF), which was established in 2009 to address youth unemployment through affordable business financing. Following its restructuring into a standalone Category A parastatal in 2019, the fund has expanded access to collateral-free loans for young entrepreneurs.
Since its revival, the fund has approved more than E25.5 million in financing, benefiting over 540 youth-owned enterprises operating across agriculture, manufacturing, information and communications technology (ICT), and the services sector. Eligible entrepreneurs between the ages of 18 and 35 can access loans ranging from E5 000 to E150 000.
Beyond financing, government and its partners have also strengthened business support services to improve the survival and growth rate of youth-owned enterprises.
Institutions such as the Eswatini National Youth Council, Junior Achievement Eswatini, YouthConnekt Eswatini, the Youth Chamber of Commerce and Industries, the Small Enterprises Development Company (SEDCO), the Royal Science and Technology Park (RSTP), the Industrial Development Company of Eswatini (IDCE), the MTN Eswatini Foundation and the United Nations Development Programme (UNDP) continue to provide entrepreneurship training, mentorship, business incubation and market linkages.
The report suggests that if current trends continue, youth entrepreneurship could become one of Eswatini’s strongest economic growth pillars, helping diversify the economy while reducing unemployment among the country’s largest demographic.
With nearly three-quarters of the population under the age of 35, government believes investing in youth-owned businesses will not only create sustainable livelihoods today but also build a more competitive, resilient and innovation-driven economy for future generations.
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