By Phiwa Sikhondze
The recently relaunched Horticulture Revolving Fund, a strategic partnership between NAMBoard, the National Maize Corporation (NMC), and Eswatini Bank, now offers an unprecedented 100% loan coverage, revolutionizing access to finance for start-ups and high-risk enterprises in Eswatini, particularly in agriculture.
Speaking at the relaunch event held at The George Hotel in Manzini, Mazibuse Khumalo, Eswatini Bank’s Agribusiness Manager, outlined the expanded scope of the Fund, which aims to support entrepreneurs and local businesses with limited credit history or high-risk profiles.
The central feature of this revamped programme is its ability to provide over 100% loan coverage, thereby significantly reducing the financial burden on borrowers and boosting agricultural output.
Under this new scheme, Eswatini Bank will provide 20% coverage on every loan issued through the programme. Simultaneously, the Central Bank of Eswatini will offer an additional 95% coverage specifically for startups and 85% for existing businesses under the Small Scale Enterprise Loan Guarantee Scheme (SSELGS).
This initiative known as the NMC/NAMBoard Credit Guarantee is designed to encourage more lending to Small, Medium, and Micro Enterprises (SMMEs), recognizing their critical role in driving economic growth and innovation.
“For instance, if a business borrows E100,000, Eswatini Bank will cover E20,000, while the Central Bank’s guarantee will secure an additional E95,000 for startups. This structure ensures that the borrower is covered for more than the total loan amount, creating additional security for lenders,” Khumalo explained.
The NMC/NAMBoard Credit Guarantee is expected to have a transformative impact on Eswatini’s agribusiness sector, which faces ongoing challenges in securing financing for expansion and improving productivity.
The programme further aims to enhance food sovereignty in the Kingdom by empowering local farmers to boost the production of critical crops such as maize, beans, and horticultural products, thereby reducing the country’s dependency on high levels of food imports.
“We currently import between 80% and 95% of the food we consume in Eswatini. This programme empowers local farmers to increase production and contribute towards making the Kingdom more self-sufficient,” Khumalo emphasized.
In addition to providing more than 100% loan coverage, the credit guarantee programme will also cover interest on loans, further easing the financial pressure on borrowers. This measure is particularly important for small businesses and startups, which often struggle with cash flow issues during their early stages of operation.
“The interest rate relief offered by this programme will help businesses manage their loan repayments more effectively,” Khumalo said.
“The blended credit guarantee model we’ve introduced today reflects our commitment to driving sustainable development and economic resilience across Eswatini,” Khumalo emphasized.