By Phiwa Sikhondze
The Mbabane Municipal Council (MCM) and the Youth Enterprise Revolving Fund (YERF) signed a landmark Memorandum of Understanding on Friday to launch a E480,000 pilot programme that will provide 12 local youth with E40,000 each in start-up capital and guaranteed service contracts, bridging the gap between youth financing and market access.
Signed at Coronation Park, Mbabane, under the theme “Beyond the Piggy Bank: Investing for Mbabane’s Youth,” the initiative establishes a half-million-emalangeni pilot programme designed to turn local maintenance needs into profitable business opportunities for young entrepreneurs.
The initiative addresses the primary reason many youth businesses fail: the lack of a guaranteed customer. Under this “market-led” model, the Mbabane Municipality provides the work, specifically grass-cutting services, while YERF provides the capital to execute the work.
YERF CEO Mandla Nkambule noted that this collaboration enables the fund to deliver on its mandate more effectively at the grassroots level. “Today’s MoU signing represents a shared commitment to practical, action-oriented economic empowerment. We are offering seed capital without collateral, removing traditional barriers that keep young people out of the economy,” Nkambule said.
The first phase of the programme focuses on maintaining Mbabane’s green spaces, with plans to introduce additional services in subsequent phases. Recent heavy rains have increased demand for public works, and the Council is looking to youth to help address this service-delivery challenge.
Key financial and operational pillars include:
• Funding Limit: Each of the 12 selected beneficiaries will receive up to E40,000 in business funding.
• Asset Security: To protect the investment, grass-cutters purchased through the programme will be stored at MCM for one year. Beneficiaries may borrow the equipment for additional “piece jobs” outside council work to increase their income.
• Repayment: The programme features a structured 6-month repayment period, supported by a professional 6-month cash flow plan to ensure participants can maintain a salary while paying off their debt.
The implementation process is scheduled to begin in February 2026 through a streamlined two-phase selection process. It begins with a 10-day tender call period led by the Municipality, during which applicants must submit a Request for Quotation (RFQ), fingerprints, three competitive quotes, and a business concept with six-month cash flow projections.
Following a three-day shortlisting period to select 12 winners, ideally one from each of Mbabane’s wards, candidates will move to the YERF online application phase. Because the market and workplace are already secured by the Council, YERF will bypass traditional technical assessments to expedite approval.
Once approved, a tripartite Cession Agreement will be signed by the applicant, YERF, and MCM to secure the financial flow. This will be followed by a Letter of Offer and a 3-month Loan Agreement.
Mbabane CEO Gciniwe Fakudze delivered a stirring address to the youth, emphasizing that while the Council is eager to empower, it will not compromise on quality. “The ratepayers demand service. They will not accept the excuse that I hired a young person if the job isn’t done,” Fakudze said.
She urged the youth to see the “dollar signs” in local government, noting that if this pilot succeeds, the programme could scale up to a total wallet of E5 million for future ventures in waste management and technical services.
The programme is open to Mbabane residents aged 18 to 35. Successful applicants will undergo ICT vetting and business training before being integrated into the Council’s maintenance schedule.
As the signing concluded, Fakudze left the prospective entrepreneurs with a final challenge: “The 12 must succeed. If you fail, the door may close on those following behind you. We are not just signing an MoU; we are unlocking an ecosystem.”