MBABANE – Minister of Commerce, Industry and Trade Manqoba Khumalo has today launched a Financing Model for Micro, Small and Medium Enterprises.
The model seeks to create new ways to fund and support the growth of MSMEs in Eswatini and is supported by the United Nations Economic Commission for Africa (UNECA).
The minister stated that MSMEs are the engine of economic growth and an effective driver of the economy as far as employment opportunities are concerned.
He said Eswatini, just like many other developing countries, is faced with the challenge of having an effective financing model.
“Such a model ensures that the MSME financing landscape is enabling enough to have new start-up businesses emerge and existing MSMEs graduate to large businesses. Many potential MSMEs, have raised their concerns with the Ministry,” the minister said.
He continued: “The model came at a time when as country we are implementing economic recovery measures as a result of our economy being worsened by COVID-19 and we believe that the successful implementation of the recommendations will assist in the recovery of our economy.”
Meanwhile, UN Eswatini RC Representative Deepak Shah said, “MSMEs can drive the Nation’s economic recovery and address the country’s high unemployment rate. In 2018, only 6% of MSMEs had access to formal credit, as were only 22% insured. It is essential that MSMEs are granted access to finance.”
