… Govt backs new continental investment alliance as Finance Minister outlines bold plan to expand business funding, boost exports and strengthen SACU revenues
BY MBONGENI NDLELA
MBABANE– Eswatini is positioning itself to become a major beneficiary of Africa’s rapidly expanding continental trade market 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.
Minister of Finance Neal Rijkenberg says Eswatini has officially signed agreements to participate in the Africa Strategic Investment Alliance (AFSIA), a continental initiative operating under the AE Trade Group that seeks to transform how small and medium-sized enterprises (SMEs) access finance and markets.
The development could prove significant for thousands of entrepreneurs who have traditionally struggled to access affordable financing and sustainable markets for their products.
According to the minister, government has committed approximately E90 million to the initiative over several years, based on the current value of the US$5 million contribution announced by government. The investment is expected to help establish innovative financing mechanisms that go beyond simply issuing loans to entrepreneurs.
NEW APPROACH TO SME FUNDING
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.
Under the new model, businesses will not only receive financing but will also be linked to entire value chains, including suppliers, buyers and established markets.
The minister illustrated that instead of merely funding a piggery project, the system would ensure that farmers have access to feed suppliers, processors and guaranteed markets before production begins. This approach is intended to increase business sustainability while improving loan repayment rates and reducing business failures.
Economic analysts say this model could be particularly beneficial for Eswatini’s agricultural, manufacturing and agro-processing sectors, where access to markets often remains a major obstacle to growth.
OPENING AFRICA TO EMASWATI PRODUCTS
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 will help local companies access markets across Africa under the framework of the African Continental Free Trade Area, which aims to create the world’s largest free trade area by number of participating countries.
This means products manufactured in Eswatini, 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.
The minister revealed that the Memorandum of Understanding has already been approved by Cabinet and reviewed by the Attorney General’s Office, with the signing process now complete. An AFSIA office is expected to open soon in Eswatini, after which detailed information on loan applications and business opportunities will be announced.
DIGITAL PAYMENTS TO BOOST TRADE
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.
SACU REMAINS A MAJOR ECONOMIC PILLAR
The minister also provided an encouraging update on Eswatini’s revenue outlook from the Southern African Customs Union, saying the country’s finances continue to benefit from stable regional trade relations.
Eswatini is projected to receive approximately E11.7 billion in SACU revenues this financial year, exceeding the E11.4 billion that had been budgeted. The additional revenue will allow government to continue strengthening its SACU Stabilisation Fund, which was established to cushion the country against future fluctuations in customs revenues.
Rijkenberg said about E350 million will be deposited into the stabilisation fund this year. Combined with the E1.5 billion already held in the fund and additional interest earnings, the reserve could reach approximately E2 billion by the end of the financial year.
The minister further revealed that preliminary indications suggest Eswatini’s SACU receipts could continue increasing next year, with the country’s share of the customs pool showing gradual growth.
DECLARATIONS CAN BRING MORE MONEY HOME
In a direct appeal to emaSwati, Rijkenberg urged travellers and shoppers purchasing goods in neighbouring countries to declare their purchases at border posts.
He explained that declarations play a critical role in ensuring Eswatini receives its rightful share of SACU revenues and VAT refunds. When goods are brought into the country without proper declaration, government loses revenue that could otherwise be used to fund public services such as roads, schools and healthcare facilities.
The minister said every declaration contributes to the country’s ability to collect revenue linked to regional trade activity, ultimately strengthening government’s capacity to deliver services and fund development programmes.
ECONOMIC TRANSFORMATION
The latest announcements signal government’s determination to accelerate private sector growth while positioning Eswatini to benefit from the opportunities emerging through continental integration.
If successfully implemented, the Africa Strategic Investment Alliance could provide a powerful platform for local entrepreneurs to secure financing, access larger markets and participate more meaningfully in Africa’s economic transformation.
For many aspiring business owners, the initiative could represent the bridge between a promising business idea and a thriving enterprise capable of creating jobs, generating exports and contributing to national economic growth.
(Courtesy Pic)
