By Sizwe Dlamini
The Horticulture Revolving Fund which was launched by NAMBOARD in partnership with Eswatini Bank to the tune of E10 Million is starting to bear fruit.
NAMBOARD’s Chief Executive Officer (CEO) Bhekizwe Maziya has disclosed that about E800 000 has been loaned out to various horticulture farmers to ensure that the kingdom does not depend on imports for major vegetables.
The aforementioned fund was launched at the end of 2022 and provides loans without the need for collateral or deposits for farmers.
The purpose of this revolving fund loan scheme is to increase access to financial aid for horticulture farmers by reducing barriers for those who may not qualify under normal financing models.
This secure credit facility is for horticulture and smallholder enterprises only and covers both start-up and existing enterprises.
Maziya in a conversation with this publication noted that the facility will fund various amenities related to the project, such as greenhouse, fencing, and irrigation systems as well as provide working capital to farmers. The CEO then broke down the loan specifications of the fund.
“The start-up enterprises’ medium-term loan begins at E20 000.00 and goes up to E100 000.00, while the start-up enterprises’ seasonal loan starts at E15 000.00 and goes up to E50 000.00. Meanwhile, the existing enterprises’ medium-term loan starts at E30 000.00 and has a ceiling of E500 000.00, while the existing enterprises’ seasonal loan starts at E15 000.00 and goes up to E100 000.00.”
“To see if a farmer qualifies, the bank will capacitate NAMBOARD Extension Officers on bank requirements for all applicants who will go through soil sample testing, water rights, and technical support availability. If the aforementioned requirements are successful then clients will be recommended by NAMBOARD for the loan facility but they will also be subjected to the bank loan approval process and the client must open a business account or possess a current account”.
The CEO further stated that those interested in applying for the funding should submit a complete application form which is supported by a National ID document coupled with legal rights to use of land (Chief’s letter, Title deed, or a lease agreement) documentation.
“Prospective clients should also have a physical address (KYC), as well as relevant quotations and a working business plan with a detailed budget and cash flow projections of how the loan will be repaid. We will also need additional documents for companies. Those additional documents are a Certificate of Incorporation and a Memorandum with Articles of Association, as well as annual financial statements for two years, a tax clearance certificate, and market contacts with letters of intent and insurance cover,” he said.