GOVERNMENT has committed about E80 million (US$5 million) towards a new funding initiative aimed at transforming the country’s small and medium enterprises (SMEs).
Authorities expressed confidence that the programme will improve business success rates and expand trade opportunities as the country positions itself to become a major beneficiary of Africa’s rapidly expanding continental trade.
Minister of Finance Neal Rijkenberg revealed that under the AeTrade Group of Companies, of which the country is one of the founding members, through the African Strategic Investment Alliance (AFSIA), funding has been allocated over the next few years to strengthen support for local entrepreneurs.
Eswatini is market-ready following government’s commitment to a new strategic investment initiative designed to unlock funding for local businesses and open new export opportunities across the continent.
Rijkenberg revealed that the country officially signed agreements to participate in the Africa Strategic Investment Alliance (AFSIA), a continental initiative operating under the AeTrade Group that seeks to transform how small and medium-sized enterprises (SMEs) access finance and markets.
He was speaking during the Finance in Focus programme on Friday.
The development could prove significant for thousands of entrepreneurs who have traditionally struggled to access affordable financing and sustainable markets for their products.
Rijkenberg said the initiative seeks to address long-standing challenges affecting SME financing by introducing a more structured and hands-on approach to business development.
He noted that while the country already supports SMEs through various institutions and funding programmes, these efforts are often fragmented and operate independently.
“At the moment, the country does fund SMEs and there are different pockets doing it, but we have found that there are better ways of supporting businesses to ensure success,” Rijkenberg said.
He cited examples from countries such as Ethiopia, where integrated funding models have yielded better results by increasing the success rates of businesses, while also improving loan repayments.
He said the new approach does not simply provide entrepreneurs with capital and leave them to navigate the market alone.
Instead, he said the programme focuses on the entire value chain to ensure businesses have access to production, markets and technical support, suppliers, buyers and established markets.
Using pig farming as an example, he explained that the programme looks beyond financing livestock purchases and ensures that all stages of the business, including production, processing and market access, are properly coordinated.
He said the system would ensure that farmers have access to feed suppliers, processors and guaranteed markets before production begins.
“They do not just let SMEs find their own way. They ensure that all the necessary steps involved in growing pigs and putting them into the market has a clear channel,” Rijkenberg added.
The minister said this model increases the likelihood of business success and creates greater confidence among lenders while improving the sustainability of funded enterprises.
Government has already concluded an agreement with AFSIA and prepared a memorandum of understanding that has been submitted to the Attorney General’s Office and Cabinet for approval.
Rijkenberg further announced that AFSIA would be establishing offices in the country to facilitate implementation of the programme and provide direct support to local businesses.
He said additional announcements would be made in the coming months regarding application processes, loan opportunities and programmes designed to help entrepreneurs access new markets and expand trade opportunities.
He noted that the initiative is expected to provide a major boost to the SME sector, which remains a key driver of employment, economic growth and entrepreneurship in the country.
Rijkenberg explained that one of the biggest challenges facing SMEs across Africa is that many businesses receive funding without adequate support structures to guarantee success.
Beyond SME financing, the alliance is expected to play a crucial role in expanding trade opportunities for businesses of all sizes.
Rijkenberg said the initiative would help local companies access markets across Africa under the framework of the African Continental Free Trade Area (AfCFTA), which aims to create the world’s largest free trade area by number of participating countries.
This means products manufactured in the country, from agricultural produce and processed foods to manufactured goods, could gain easier access to millions of consumers across the continent.
For a country seeking to diversify its economy and reduce reliance on traditional export destinations, the initiative presents an opportunity to tap into one of the world’s fastest-growing consumer markets.
Another key feature of the initiative will be the introduction of innovative payment platforms designed to facilitate cross-border trade using African currencies.
Rijkenberg described the system as a smart solution aimed at reducing barriers that often complicate trade between African countries.
The platform is expected to improve transaction efficiency and lower costs for businesses seeking to trade across borders.
The development aligns with broader continental efforts to increase intra-African trade, which currently accounts for a relatively small share of the continent’s total trade compared to other regions of the world.
