LocationsMSME Policy Aims to Boost Job Creation and Economic Growth
February 6, 2025
UNDP Resident Representative, Mr. Henrik Franklin, and Minister of Commerce, Industry and Trade, Hon. Manqoba Khumalo, launched the MSME policy.
Eswatini has about 70,000 Micro, Small and Medium Enterprises (MSME) employing over 90,000 people – 21% of the workforce – according to the 2023 FINSCOPE Blended MSME Survey. According to the same survey, the sector contributes an estimated 50% to national GDP. However, 75% of MSMEs are owned by independent entrepreneurs, with no jobs created, and 74% are in rural areas.
In the meantime, the Central Bank of Eswatini notes that the MSME sector has the potential to create over 20,000 new jobs and play an essential role in the economic inclusion of the youth, which comprises up to 37% of the population. Eswatini has a national youth unemployment rate of 58%.
UNDP programme analyst, Mavie Thwala, presenting at the launch.
To stimulate economic growth and create more job opportunities, the Ministry of Commerce, Industry, and Trade, supported by the United Nations Development Programme (UNDP), revised the National MSMS Policy to address the sector's bottlenecks. The National Policy for MSME 2024-2029, which the Hon. Minister Manqoba Khumalo launched today at the Hilton Garden Inn, Mbabane, focuses on seven pillars:
• Business-enabling environment
• Business support
• Human capital development
• Finance
• Markets and value chain
• Entrepreneurial culture
• Infrastructure and technology
UNDP Resident Representative, Ms. Henrik Franklin, Mbabane Municipal Council CEO, Ms. Gciniwe Fakudze and SEDCO Director, Ms. Khetsiwe Mhlanga.
Speaking at the event, Hon. Khumalo said extensive stakeholder consultations and global best practices have shaped the policy. It encompasses providing a conducive enterprise environment, assistance in business development and promotion, financing viable business propositions, and market linkages. Sound infrastructure and technology are to support all these key strategic areas.
He emphasised that the policy's practical implementation requires a collaborative effort across Government Ministries, private sector stakeholders, and development partners.
“We must work together to transform MSMEs from predominantly informal enterprises into structured, growth-oriented businesses capable of competing locally and globally, thereby, creating jobs and driving exports,” said Khumalo.
He further acknowledged that the Citizen Economic Empowerment Act 2023 complements the policy, ensuring that Indigenous MSMEs benefit from increased preferential procurement opportunities and targeted support.
Speaking at the same event, UNDP Resident Representative Mr. Henrik Franklin said the policy is a pivotal milestone in Eswatini's journey towards sustainable economic development.
“This policy underscores our joint commitment to nurturing the growth of MSMEs, recognising their critical role in driving economic diversification, job creation, and innovation,” said Franklin.
He said by reducing reliance on a limited number of industries, Eswatini can build a more resilient economic structure capable of withstanding external shocks. This diversification is significant for Eswatini as we seek to maximise the benefits of the African Continental Free Trade Area (AfCFTA) and expand access to domestic, regional and international markets.
“In this regard, the recently launched Ingelo Local Certification Scheme, developed by the Ministry of Commerce, Trade and Industry through the Swazi Standards Authority (SWASA) with the support of UNDP, is a transformational initiative,” he said.
Launching this policy marks the beginning of an active implementation phase, where we will translate the policy's aspirations into tangible actions and outcomes. Among the policy's outstanding features is its focus on directing significant and dedicated public resources towards MSME development and recognising the sector as an engine for overcoming poverty and promoting inclusive growth in the country.