GOVT LAMENTS UNTAPPED E140M MSME SCHEME

EZULWINI – Government has lamented over the under-utilisation of its E140 million Small Scale Enterprise loan guarantee scheme.

Minister of Commerce, Industry and Trade Manqoba Khumalo called upon Micro, Small and Medium Entrepreneurs (MSME) to take advantage of the scheme held by the Central Bank of Eswatini, in order to improve the contribution into the country’s Gross Domestic Product (GDP).

He mentioned that it was unimpressive to note that the current uptake rate was between 10 and 15 per cent, yet there continued to be a lot of MSME’s who lacked access to finance. The scheme was introduced to help MSME’s with less or no assets to access finance from financial institutions.  

“It’s actually a shame that government has put up so much money but MSME’s are not taking advantage of the opportunity,” said Khumalo in his official address during the Eswatini SME Finance Forum.

The forum was convened by the Centre for Financial Inclusion CFI in partnership with strategic stakeholders under the theme; ‘bridging the gap between small business and finance’.

Celebrate

The minister also took the opportunity to celebrate MSMEs contribution to total employment, which currently stands at 32 per cent. He said the intention was to improve MSME contribution to 50 per cent within the next five to 10 years.  
He further mentioned that the contribution of 40 – 45 per cent by MSME into Eswatini’s GDP ought to be improved drastically in order to ultimately improve the counrty’s overall economy.

Energised

“I am energised by what could be achieved if we were to improve access to finance for MSMEs which are a critical aspect of the Eswatini economy,” said Khumalo.

The minister also urged the MSME sector to also utilise the export guarantee scheme valued at E20 million, which seeks to assist MSMEs that desires to tap into the kingdom’s export market.  

CBE Governor Majozi Sithole said the Small Scale Enterprise Loan Guarantee Scheme Export Credit Guarantee Scheme was open and available to all qualifying SMEs through the commercial banks.

“I would like to encourage SMEs who are not familiar with the Schemes to enquire about it from their banks,” said Sithole. He mentioned that they could also visit their development finance division at Central Bank for further enquiry.

appreciation

Sithole observed with much appreciation that there were elements of capacity building for the MSME’s and encouraged MSMEs to take advantage of such an opportunity.
“This will assist them in developing convincing bankable financing proposals to enable them to access financial resources,” added Sithole.

The governor also encouraged the partners in SME development to continue intensifying efforts in building the capacity of SMEs.
He noted that educating SMEs would make them more prepared to receive and profitably use credit which would enhance their visibility to key financial institutions and funding partners.

“The more we capacitate SMEs, the more secured the future of the country will be as it develops job creators as opposed to job seekers. As part of capacity building, remind the SMEs that as they become successful they should always remember to pay tithe and their businesses will receive more blessings,” added Sithole. 

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