By Mbono Mdluli
LOBAMBA – In a strong push to unlock financial opportunities for every Liswati, the Ministry of Tinkhundla Administration and Development is seeking E590 million to breathe new life into the Poverty Reduction Fund.
This hopeful development emerged during a Public Accounts Committee (PAC) session held in the House of Assembly on April 9, 2025. The Ministry’s Principal Secretary, Nonhlanhla Dlamini, revealed that they had submitted a budget proposal for the 2025/26 financial year with the aim of reactivating the fund, which previously offered individual financial support to Emaswati looking to start income-generating ventures.
Khubuta MP Masiphula Mamba passionately advocated for the fund’s revival, stressing that many citizens are in need of personal loans to kickstart small businesses. Unlike the Regional Development Fund, which requires group applications, the Poverty Reduction Fund empowers individuals to access support on their own terms.
“The fund allowed even individuals to borrow, unlike the RDF which demands a group of 10 people. This poses a challenge for many,” Mamba highlighted.
Addressing past challenges, PS Dlamini acknowledged that while the fund was launched with good intentions, it faced hurdles due to a lack of proper regulations and preparedness. Still, the Ministry managed to recover E10 million from previous borrowers out of the E20 million disbursed.
Nhlambeni MP and PAC Chairperson, Manzi Zwane, questioned the feasibility of managing E590 million, given past experiences. However, Dlamini expressed optimism that with clear regulations in place and lessons learned from the past, the fund can make a meaningful comeback.
Originally established during the ninth Parliament (2008–2013), the Poverty Reduction Fund stood out for its inclusive approach. It offered loans ranging from E5,000 to E100,000, without age restrictions—unlike the Youth Enterprise Revolving Fund (YERF), which targets the youth.
If successful, this renewed initiative could become a vital tool in reducing poverty and promoting entrepreneurship across Eswatini.
