Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

3.1 MSME Policy in context of Regional and Goal 2: End hunger, achieve food security, improve International Commitments nutrition, and promote sustainable agriculture. Eswatini is a member of various regional and international Goal 3: Ensure inclusive and equitable quality education configurations and agreements. The MSME Policy and promote lifelong learning opportunities for all. is Eswatini government’s commitment towards the development of MSMEs as part of national development Goal 4: Achieve gender equality and empower all women strategies, and to further access larger markets, considering and girls. the country’s memberships and commitments to regional and global member bodies and blocs. The Policy thus draws Goal 5: Ensure availability and sustainable management from key regional and international development agendas, of water and sanitation for all. including the SDGs, WTO trade facilitation agreements and the AU Agenda 2063 amongst others. For countries like Goal 6: Ensure access to affordable, reliable, sustainable, Eswatini to benefit from initiatives like the AfCFTA, Eswatini and modern energy for all. needs to foster the creation of an enabling environment for growth of vibrant and competitive private enterprises, Goal 7: Promote inclusive and sustainable economic entrepreneurship, and innovation as critical elements to growth, full and productive employment, and decent work achieving national aspirations, whilst contributing towards for all. regional and global growth and development objectives. Goal 8: Build resilient infrastructure, promote inclusive and

3.2 MSME Policy and the SDGs sustainable industrialization, and foster innovation. Dynamic and competitive private enterprises of all sizes Goal 9: Reduce inequality within and among countries. and strong ecosystems for entrepreneurship are critical for achievement of all SDGs since private sector-led development is a foundation of economic growth, job creation, poverty alleviation, and increased prosperity. Entrepreneurs around the world drive innovation and development of solutions to the most intractable development problems and have a key role to play in advancing each of the 17 SDGs, with the MSME Policy contributing towards the following SDGs: Goal 1: End poverty in all its forms everywhere. 14 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

3.3 The MSME Policy and African Union Agenda The MoA, recently revised the initial Eswatini National 2063 Agricultural Investment Plan (ENAIP), through the development of the Second-Generation Eswatini National The AU Agenda 2063 sets out a framework for “an Agricultural Investment Plan Strategic Framework (ENAIP integrated, prosperous, and peaceful Africa, driven by 2.0), which is being finalised. The ENAIP 2.0 Strategic its own citizens and representing a dynamic force in the Framework consists of seven strategic axes, which include international arena.” The first 10-year Implementation and about five (5) of the strategic axes relate directly to Plan of the Agenda (2014–2023) includes seven Priorities actions within the MSME Policy hence a need for proper (“Aspirations”) and 20 Goals. Successful implementation of coordination of plans and strategies within and amongst the MSME Policy will directly contribute to the achievement Ministries, which is key to the development of MSMEs in of the following goals: the country. Goal 1: A high standard of living, qualify of life, and well- The Policy is also informed by the National Regulatory and being for all citizens. Quality Policy of 2023, which seeks to amongst other key issues, assist Eswatini enterprises, including MSMEs and Goal 2: Well-educated citizens and skills revolution Co-operatives to become more competitive, and better underpinned by science, technology, and innovation. integrated with local, regional and international value chains, through enhanced trade facilitation and sustainable Goal 3: Transformed economies. industrialization. The policy thus aims at The Policy aims at strengthening the national quality infrastructure to Goal 4: Modern agriculture for increased productivity and achieve accelerated economic growth, amongst other key production. objectives. Goal 5: Environmentally sustainable and climate-resilient Finally, the MSME Policy is informed by the National economies and communities. Industrial Policy 2023 - 2033 (final draft), which has five key policy objectives, which are strongly aligned with the Goal 6: Full gender equality in all spheres of life. focus of the MSME Policy. These are: Goal 7: Engaged and powerful youth. • Objective 1: Maximising domestic benefits by strengthening national value chains and increasing

3.4 Relationship between MSME Policy and domestic production capacities; National Policies and Strategies • Objective 2: Boosting value addition in resource-based The MSME policy is anchored on the National Development sectors to ensure inclusive industrialisation; Strategy, which is the blueprint for Eswatini’s Development Vision. Furthermore, the MSME Policy seeks to draw on • Objective 3: Enhancing economic resilience by the recently passed Citizen Economic Empowerment Bill diversifying production and export markets; (CEEB), which seeks to create more space for citizen owned MSMEs in both private and private sector institutions • Objective 4: Supporting decent wage sectors and build and procurement. new sector for the creation of quality jobs; and The MSME Policy is closely aligned with all key • Objective 5: Promote green industrialisation by Government of Eswatini policies and strategies across all supporting circular economy, waste management, and line ministries and is grounded in the country’s strategic renewable energy and energy efficiency initiatives. orientation articulated in NDP, 2023/24 - 2027/28. Particularly, it supports priorities of empowering youth and The ultimate coordination of the MSME Policy is key as women entrepreneurship, improving access to finance for some areas and activities sit across multiple Ministries and entrepreneurs, developing managerial and business skills, agencies to ensure deliberate development of MSMEs in supporting innovation and technology firms, improving the country. industry networks and business support services, developing competitive value chains and services sectors, reducing the cost of doing business and facilitating trade, increasing productivity and value addition in agriculture, and increasing entrepreneurial innovation and risk taking, among others. The MSME Policy also draws from key sectors like agriculture, which are influenced by the main policy document for the agricultural sector, which is the Comprehensive Agricultural Sector Policy (CASP) of 2005. According to Eswatini’s Labour Force Survey (2021), agriculture is the country’s second-highest employment contributor after wholesale or retail; about 13.5% of working Handicraft produced by MSMEs. ©UNDP citizens are in the agricultural sector.1 1 LFS 2021. 15 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) 4 | MSME Policy Development Process The MSME Policy development approach has been entrepreneurs. SUP offers a $80,000 equity-free grant, a informed by national guidelines relating to policy one-year visa, and six months of mentoring. SUP makes development and review as captured by the PPCU. From a distinction between a government policy and a state a practice point of view, the review process started with policy. Although it is run by the government and funded by literature review, leading to stakeholder consultation and taxpayers, SUP functions more like a start-up program and roundtable discussions, with the outcome being a draft less like a government agency. It measures its success by MSME Policy to be presented to stakeholders for inputs and its ability to change public perception of entrepreneurship validation, which should inform the final policy document and promote a cultural change that allows its citizens, that has to be presented to key stakeholders and MCIT, particularly youth, to attempt to start a business without prior to presentation and adoption by Cabinet. penalizing failure.

4.1 Literature Review - International Best Practice 4.1.2 Singapore

4.1.1 Chile A small country with few natural resources, Singapore took a deliberate approach to foster its economic Chile has a rank of 19 on the Global Entrepreneurship growth trajectory. Through government support to Index and is recognised for its policies and programs entrepreneurship, Singapore has established itself as a for stimulating entrepreneurial growth. The country has world-class example and a destination for entrepreneurs liberal immigration policies for international entrepreneurs, from around the world. In a span of just five years, from a generous taxation program, and among the best 2010 to 2015, Singapore’s entrepreneurial ecosystem has business incubator programs in Latin America. The flourished. Singapore’s success story in entrepreneurship Chilean Economic Development Agency, Corporación de began with strong government leadership that has passed Fomento de la Producción de Chile (CORFO), is tasked business-friendly reforms, streamlined the process of with promoting economic growth in the country. It is the business creation, facilitated access to overseas markets, main driver of entrepreneurship policy, with more than 50 improved the venture capital landscape, and modified the programs to support entrepreneurs, both domestic and tax program to benefit start-ups. international. Major government-sponsored programs such as Start-Up Chile (SUP) have allowed the country to pull ahead in the growth of start-ups led by Chileans and by international Singapore Chile 16 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

4.1.3 South Africa South Africa is next door to Eswatini and a major trading partner with many influences on the local economy. The SA SME Fund was established by members of the CEO Initiative – a collaboration between government, Labour, and business as an avenue of support for the SME sector. The Fund allocates investment capital to accredited fund managers – venture capital or growth-oriented equity funds – that invest directly in scalable small and medium enterprises with the best potential for growth and sustainable employment creation in the South African economy. The Fund is mandated to invest 50% of its capital into black- African owned and managed businesses. Other initiatives include a six-month debt relief finance scheme for SMMEs that was launched by the South African government, along with a spaza support scheme and an agricultural disaster support fund for smallholder and communal farmers.

4.2 Literature Review - Domestic research, South Africa policies, and strategies The EDP also draws extensively on the review of prior research and assessment, which was part of the literature review, including the ITC’s Financing Models for MSMEs in Eswatini, World Bank’s CPSD 2022, National Development Plan, Industrial Policy, the National Poverty Reduction Strategy and Action Plan, and the Swaziland National Agricultural Investment Plan (SNAIP) amongst others. 50%

4.3 Stakeholder Consultations Capital invested into black African owned The MSME Policy development process, in keeping with and managed PPCU Policy development guidelines, followed a thorough businesses consultative process, engaging private sector, Figure 1: MSME Policy Development Process Development and validation of inception report MSME Stakeholder Forum Stakeholder Consultive meetings & Roundtable Discussions Presentations to Steering Committee Stakeholder Validation Workshop Final Policy Document Cabinet Presentation - Final presentation & adoption of the policy academia, Banks, non-bank financial institutions, business to entrepreneurship in the Kingdom of Eswatini and develop associations, women groups, and youth groups, to ensure clear and realistic MSME Policy actions. that the policy is responsive to challenges facing MSMEs, especially women, youth and those living with disabilities. The process followed during the MSME Policy development and review process is detailed above. The extensive consultations were aimed at identifying the key constraints 17 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) 5 | Policy Vision and Objectives Fruit and vegetable vendors at Lobamba Lomdzala Market, Mahlanya. ©UNDP

5.1 Vision coaches, and incubators. “Contribute towards the development of a vibrant 3. Improve access to skills and capabilities of existing entrepreneurial MSME sector that contributes to the and potential entrepreneurs to effectively start, grow and economic development of Eswatini through innovative manage a business. and creative business practices supported by an enabling environment, which fuels transformation of 4. Improve entrepreneurs’ ability to access finance required rural households and other communities in productive for business growth from various sources, including equity, economic structures.” debt, peer to peer lending and grants from public and private sources.

5.2 Mission 5. Expand access to domestic and export market To enhance and promote an entrepreneurial ecosystem opportunities for entrepreneurs, including holistic that stimulates domestic production, competitiveness, development of key value chains. innovation, diversification and economic inclusion of MSMEs through targeted and deliberate support towards 6. Improve key enabling infrastructure especially in the climate change, capacity building, access to opportunities areas of standards and improve entrepreneurs’ access and improved access to markets and finance. to technologies, including internet and climate smart innovations for business growth and productivity.

5.3 Policy Objectives 7. Promote the culture of entrepreneurship and equitable The main goal of the MSME Policy is to holistically develop access to business opportunities for all entrepreneurs, the entrepreneurial ecosystem through deliberate actions especially youth, women and people living with disabilities. to address the key constraints affecting MSMEs under each of the seven strategic pillars to achieve the following For small businesses to sustainably contribute to job objectives: creation, government and the private sector need to work together to solve two of the main constraints hindering 1. Improve business environment for MSMEs, including MSME development: access to finance and access to measures to reduce red tape and reduce the cost of doing markets. To return to an export-led growth model, Eswatini business. needs to increase export competitiveness by advancing regulatory reforms, increasing national output, and 2. Improve business support services and monitoring improving trade supporting infrastructure and logistics, systems targeting entrepreneurs, including accreditation including regional collaboration to address trade facilitation and development of business consultants, mentors, constraints, access to markets and access to finance. 18 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

5.4 Policy Framework The World Economic Forum (2013) defines the entrepreneurship ecosystem to include eight pillars, namely accessible markets; human capital/workforce; funding and finance; support systems/mentors; government and regulatory framework; education and training; major universities as catalysts; and cultural support. The ecosystem pillar framework developed by Professor Daniel Isenberg is built around six pillars of the Babson Entrepreneurship Ecosystem Project (BEEP), which include policy, finance, culture, support, human capital, and markets. The proposed entrepreneurship ecosystem model draws from both the WEF and BEEP, adding a seventh pillar of infrastructure and technology. The Eswatini MSME Policy has seven (7) pillars as per figure 2 below, being: Business Enabling Environment; Business Support; Human Capital and Management; Finance; Markets and Value Liquid soap & floor polish produced by a local MSME. ©UNDP Chains; Entrepreneurial Culture ; and Infrastructure & Technology. Figure 2: Eswatini MSME Policy Strategic Pillars Pillar 1: Business enabling environment aims to decrease new models of business incubators (especially for rural the costs of starting and running a business, including the areas), and strengthening linkages with international overall ease of doing business. This includes streamlining business support institutions. tax requirements for new firms to decrease business costs for new entrepreneurs. Proposed policy actions include Pillar 3: Human capital and management focuses reviewing and modifying tax requirements for start-ups and on the factors that affect the quality of management at MSMEs, increasing awareness for entrepreneurs about the firm level and of the workforce, including academic the benefits of formality, and increasing the awareness education, technical training, and people’s general abilities of tax requirements, decentralizing business registration and qualifications to enter the job market and start their and renewal services, and driving eGovernment initiatives, own businesses. Policy actions focus on improving the including digital services to improve public service delivery. marketability of tertiary academic programs, strengthening applied skills in secondary school entrepreneurship Pillar 2: Business support focuses on improving the curriculum, improving availability of technical skills business support systems for entrepreneurs through training outside of formal education, improving business access to tailored business consulting services, improving governance, and strengthening service delivery across all the \availability of high-quality business consultants, sectors. supporting development of mentorship networks, piloting 19 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Pillar 4: Finance is key to supporting entrepreneurs’ Pillar 6: Entrepreneurial Culture aims to motivate and ability to drive business growth. Access to finance from encourage a culture of entrepreneurs. Entrepreneurial various sources, including equity, debt, and grants from culture is the society that enhances the attributes, values, public, private, and peer-to-peer sources helps supports a beliefs, and behaviours related to entrepreneurs. Eswatini’s dynamic ecosystem. Policy actions increase entrepreneurs’ entrepreneurs have been cited as having a copy-cat awareness of information on financial products, improve syndrome and weak entrepreneurial culture, with about the effectiveness of the Credit Guarantee and Export 75% of MSMEs operating an informal enterprise. Guarantee Schemes, help financial institutions develop industry-specific financial products, supports development Pillar 7: Infrastructure and Technology have a significant of movable assets register, promote learning and exchange impact on how new business ventures are imagined and of best practices in financing, build a private capital investor created. In fact, the level of digital technology is positively culture, create a start-up matching fund and a fellowship associated with the output of national entrepreneurial fund for entrepreneurs and promote crowdfunding. ecosystems, and this positive relationship is strengthened in nations with a supportive culture, high-quality institutions, Pillar 5: Markets and Value Chains focuses on expanding supportive policies, accessible resources, and well- access to domestic and export market opportunities for developed service industries. Eswatini has invested well entrepreneurs via improving cross-border trade; improving on its road, rail, and air infrastructure, allowing for easier warehousing systems; making government procurement linkages to major ports and markets. Investments on the opportunities more accessible to newer, smaller companies; internet side however have been slow, with broadband improving access to market information; facilitating internet still being planned for roll-out. adoption of standards; and development of an MSME Cluster Strategy to improve competitiveness of MSMEs, including vibrant industry and sub-sector associations. Metal products on display at Lobamba Lomdzala Market, Mahlanya. ©UNDP 20 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) 6 | Data Analysis: Entrepreneurship Constraints Extensive stakeholder interviews and consultations by several factors including ease of doing business were undertaken with an initial national stakeholder conditions, the quality of institutions and infrastructure, forum, followed by one-on-one meetings and round table political and economic stability, and the effectiveness discussions to inform the policy revision. The MSME Policy of regulatory frameworks, as well as the low levels of review identifies key gaps under each of the eight pillars of corruption. Investors prefer a transparent, predictable, the 2018 MSME Policy and includes corrective measures and automatic regime, build around clear and automatic to address them, based on domestic experiences and approval processes and policies. evidence from implementation and international best practices. The issues raised below are not exhaustive, but Eswatini has a weak and deteriorating business climate merely reflect issues that emerged from the stakeholder as captured by World Bank Ease of Doing Business interviews, focus group discussions, and document and other reports. The table above shows Eswatini’s reviews. The basis for inclusion is informed by consensus rankings in various international benchmarks that cover from stakeholders, regarding key priorities in terms of their the investment climate, competitiveness, and governance direct impact on entrepreneurial ecosystem and potential issues of countries at global and regional level. From positive spill-over effects, such as inclusive economic stakeholder engagement, the major constraints that hinder growth and job creation; and are deemed within the control entrepreneurial development, include: of government, with available solutions and actionable in the short, medium, or long term. 6.2.1 Burdensome taxation - Corporate income tax does not differentiate between larger, established companies

6.1 MSME Definition and Segmentation and new firms (start-ups and MSMEs), remaining too burdensome for new firms. New firms are subject to the The previous policy defined MSMEs according to three same 27% corporate income tax as established companies criteria, being number of employees; turnover; and value and do not benefit from tax grace periods or progressive of assets. The revised policy only uses two defining criteria, taxation to ease the burden on new businesses and being number of employees and turnover, as value of accommodate the business challenges at early stages of assets is not easy to measure and tends to be industry growth. related, e, g. IT company with billions in turnover and only a few employees. 6.2.2 High operating costs - high input costs and operating costs, especially rent, utilities, and international

6.2 Pillar 1: Business Enabling Environment road transport, are high in Eswatini, as a landlocked small economy relying heavily on imports. A country’s business and investment climate is influenced Farm To Table, a youth-led small business. ©UNDP 21 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Products produced by local MSMEs. ©UNDP

6.2.3 High costs of starting and running a business, studies that point to leadership, entrepreneurial and which are further compounded by high levels of management skills are weak for most of Eswatini’s small bureaucracy. The costs of registering a company, including and micro enterprises and according to the FinScope trading licenses and annual renewals of same are high in MSME Eswatini Report, 2017, a large number operate as Eswatini compared to regional comparators. In Rwanda, informal enterprises (70%). company registration is free, whilst in South Africa, entrepreneurs pay E125.00 for registration and E50.00 for reservation.

6.2.4 High rate of business informality - Financial institutions identify informality as a major barrier to credit for MSMEs. Informal enterprises are unable to produce the documents that banks typically require for a loan application. 70% According to the FINSCOPE MSME Survey, the share of informal businesses in Eswatini (i.e., businesses operating without formal registration) can be as high as 70%. While business support has been gradually improving in Eswatini, key challenges remain, including:

6.3.1 Consultant shortage -There is an insufficient number 70% of high-quality consultants with sector and business stage expertise and solid business management skills in both the public and private sectors. Business support organisations throughout the country need to be supported in improving their advisory programs. Start-ups, MSMEs, cooperatives, and individuals (youth and women) need assistance in financial management, business plan development and

6.3 Pillar 2: Business Support mentorship to ensure sustainability and business growth in the long run. Eswatini’s MSME’s have a longstanding challenge with survival, productivity, access to markets, growth, and access to finance. There is strong evidence from various 22 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

6.3.2 Low demand for advisory services - Demand for industry for skills development and practical training are advisory services from businesses of all sizes is also low weak, deterring both sides from benefiting from each due to little perceived value of consulting. other. According to the Technical, Vocational Education and Training (TVET) Institution Survey the inability of

6.3.3 Mentor deficit - No mentorship culture or formal training institutions in the country to produce competent mentorship networks exist in Eswatini; experienced graduates is attributed to the lack of cohesion between entrepreneurs and businesspeople do not make themselves training institutions and companies. Most companies are available to coach and mentor start-ups and MSMEs and not involved or engaged in the processes of curriculum there is no system to identify and manage mentors. development.

6.3.4 Incubator/accelerator deficit - There are not 6.4.1.3 Shortage/lack of Entrepreneurship curriculum – enough business incubators and accelerators available there is no formal entrepreneurship curriculum in Eswatini’s to provide overall infrastructure and business support secondary schools. Government and stakeholders should based on international best practices and benchmarks. work towards introducing entrepreneurship and practical Simultaneously, there is limited demand for these services skills training in the education curriculum, targeting due to the low number of entrepreneurs and start-ups. secondary schools across the country.

6.4 Pillar 3: Human Capital and Management 6.4.2 Management Challenge No entrepreneurial ecosystem can flourish if entrepreneurs 6.4.2.1 Poor business governance - Separation between do not have the adequate support to build the skills and business and family matters in firms is usually weak, know-how required to start companies and run them resulting in poor governance, with mixed bank accounts and effectively, as well as to operate the key functions of the transactions, joint liabilities, and conflicting management companies. In Eswatini, the human capital hurdles in the practices. educational system and applied management spheres include: 6.4.2.2 Poor Business Management skills - General management skills across the start-up and MSME spectrum

6.4.1 Education Challenge are usually poor, with entrepreneurs lacking the basic knowledge of business disciplines such as accounting,

6.4.1.1 Skills Mismatch and weak tertiary institutions - marketing, strategy, and finance. The National Skills Audit Report established that the main challenge faced by the Eswatini economy was the chronic 6.4.2.3 Limited understanding of tax - Entrepreneurs mismatch of skills supply and demand which perpetuate are not educated about the tax system and often do not unemployment, the skills deficit, and the brain drain that pay taxes correctly, incurring additional costs and penalty occur in the country. The tertiary education system is said fees, with most being black-listed and not able to get tax to be producing skills that are not required by industry. clearance and inter-alia, cannot bid for most tenders.

6.4.1.2 Weak linkages between education and industry/ market - Linkages between tertiary institutions with An MSME briefs Hon. Minister Manqoba Khumalo about the sauces she produces. ©MCIT 23 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Hon. Minister Manqoba Khumalo and UNDP Resident Representative Henrik Franklin chatting with a local coffee producer. ©UNDP

6.4.2.4 Poor recordkeeping and bookkeeping - Most history, which can be addressed through the development micro and small businesses do not maintain proper records of proper digital platforms and FINTECH solutions to and don’t undertake proper and basic bookkeeping, which improve KYC issues. This contributes to the statistic of only limits their capacity to plan efficiently and raise financing. 6 percent of MSMEs having access to formal credit and close to 90 percent being completely excluded, according

6.4.2.5 Poor customer service and delivery - General to the FINSCOPE 2017 MSME Survey. customer care and client relations are still low across all sectors of the economy. Development and encouragement of a customer-oriented service culture is key for sectors such as `retail, hospitality, and tourism to flourish.

6.5 Pillar 4: Finance 90% + of the economy MSMEs generally hold the view that banks are predominantly unnecessarily harsh in assessing their loan applications, being cash based asking for financial accounts, business plans and cash flow projections that few can submit. Banks also ask for collateral and a share of owner’s contribution to the project +/- 90% cost, which is onerous for some MSMEs, especially the being microenterprises. Local banks see the problem not so much completely as lack of finance but rather a shortage of effective demand excluded for credit. Banks are inundated with loan applications that are poorly motivated, lacking in information and not supported by required documents (such as financial 6% statements). of MSMEs having access The other challenge with regards to accessing finance, to formal credit is that the Eswatini payments system is relatively underdeveloped, with over 90 per cent of the economy predominantly being cash based (FINSCOPE MSME Survey, 2018). This makes it harder for financial institutions to monitor their client’s business and to build their credit 24 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) The main hurdles that businesses of all sizes face in raising capital stem from market inefficiencies that, once fixed, should unleash financing, including:

6.5.1 Lack of development finance - Eswatini does not Banks require to 25% have any development finance institutions that can support a deposit of for commercial MSMEs with inexpensive financing. Commercially, MSMEs 20% transport rely on the four commercial banks operating in Eswatini, three of which are South African (SA). According to the Financing Models for MSMEs, local entrepreneurs feel that the SA owned banks are disconnected from the economic reality of Eswatini, and their mindset is not adapted to the local context. This leaves them with Eswatini Bank,

6.5.4 Underutilized loan guarantee scheme - Central the only local bank which has however, shifted focus and Bank of Eswatini (CBE) works with banks and microfinance now operates as a commercial bank, which does not help institutions, to cover up to 95% of the required loan amount alleviate the access to finance constraint facing MSMEs. by way of providing a guarantee. It remains underutilized FinCorp, Eswatini’s de facto development bank, focuses by both entrepreneurs and banks. more on the MSME space, and charges on average Prime + 4.5, which currently stands at 15.5%,2 against the draft CCA Regulations which have a cap of 18% on DFI Finance, making FINCORP relatively affordable and accessible to MSMEs. The Industrial Development Corporation of Eswatini (IDCE) and Eswatini National 95% Industrial Development Corporation (ENIDC) focus on of the loan amount covered by CBE large loans for large firms, and their modes of financing together with banks (usually through equity stakes) are unfit for MSMEs. & microfinance institutions FINCORP 18% charges on 6.5.5 Limited alternatives for collateral - Lack of movable average Prime + 4.5 cap on the draft CCA assets register precludes usage of movable assets as for MSME space, which stands at Regulations collateral. Trade/inventory, finance/factoring, and leasing on DFI are available to MSMEs and large enterprises. However, 15.5% Finance most macro enterprises tend to rely on micro-finance institutions, with established enterprises using commercial bank trade finance.

6.5.6 High interest rates - Owing to the lack of development

6.5.2 Wholesale Approach - The lack of segregation of finance and grants for MSMEs, especially start-ups, the MSMEs to consider age, size, and other factors, assumes interest rates charged by lenders are too high, due to the MSMEs face the same challenges and it is this wholesale high cost of capital coupled with limited competition in approach that adds to making access to finance difficult. the banking sector, making borrowing prohibitive for low- The MSME Policy recognises the need to define the growth businesses. nature of the problem and attribute it to the types of MSME participating the in the Eswatini economy, rather than a 6.5.7 Unfavourable payment terms - Payment for supplies wholesale approach. Data was collected to inform the policy to the private sector (medium and large corporations) on the problem as well as how it affects the different types and government to MSMEs tend to be delayed, affecting of MSME and at the levels from micro to large MSMEs. attractiveness of MSMEs to commercial credit. In some cases, payments by government can take months. Most

6.5.3 High security/collateral requirements - Banks of the MSMEs sometimes rely on order financing against have high collateral requirements and are therefore often cessions from the buyer, as a requirement by most inaccessible for start-ups and MSMEs. One area of key micro-finance institutions, as banks tend to be reluctant investment for MSMEs considering Eswatini’s landlocked to fund micro and small enterprises. Government can status, is transport services and logistics. Banks require consider alternatives considering the lack of cessions for a deposit of 20%-25% for commercial transport, with government payments. Inviting micro-finance institutions personal surety’s and the truck as collateral. Commercial to bid for matching funds targeted towards supporting property also requires high deposits. MSMEs would help improve this situation. 2 November 2023 25 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Hon. Minister Manqoba Khumalo and UNDP Resident Representative Henrik Franklin interact with Ingelo Local Certification Scheme participants. ©UNDP

6.5.8 Under-developed equity markets - This is partly 6.5.12. Lack of innovative financing schemes like because Eswatini Stock Exchange (ESE) only has about crowdfunding and crowd farming - Despite an explosion 8 listed companies, coupled with most MSMEs not being in crowd funding and crowd funding platforms, Eswatini, familiar with equity investments. Few companies see remains one of the few countries, lagging this global trend. capital markets as a potential avenue for raising capital Emergence of platforms such as Kiva, Global Giving and and see it as a platform for larger firms. Even the larger Better Place have seen MSMEs leveraging technology to firms, partly due to foreign control, don’t use the local ESE raise funding. Increased awareness of these mechanisms for capital raising. among entrepreneurs and funders is needed for Eswatini to expand available funding sources.

6.5.9 Lack of Seed Capital - There are limited financial resources available from family and friends and limited 6.6 Pillar 5: Markets and Value Chains other early-stage equity funding options for start-ups, such as seed funds and angel investors. Start-ups, MSMEs, and large enterprises cannot prosper in silos. They need to be connected to domestic, regional,

6.5.10 Limited Private equity and venture capital funds and global value chains in a way that they can source - There is limited private equity and venture capital funding inputs and sell their products and services efficiently, available for growth-stage companies. This is due, in part, maximizing profits, growth, and job creation. Given the size to limited exit options, which in most cases are restricted to of Eswatini’s economy and geographic disadvantages as a founder’s buy-back and acquisitions. The very few private landlocked country, Eswatini’s businesses face important equity and venture capital deals taking place, usually come challenges, including: from locally managed funds investing for their own balance sheet or clients mandate, usually, an institutional/pension 6.6.1 Limited domestic market - Eswatini’s domestic fund investor. market is small and has low purchasing power. Businesses need to take advantage of existing regional and

6.5.11 Lack of Grants to support start up and growth international trade agreements to better connect to export - Grant and prize programs are available through select markets for growth. At the same time, domestic demand, incubators and accelerators, donors, and events/ especially for food products, is bound to increase with competitions. However, they are not tied to follow-up continuous economic growth, urbanization, and trends like financing and business growth targets. These one-off grants the “Supermarket Revolution” already experienced in other have no know timing periods and thus not predictable, with African countries. Businesses need to improve integration a majority if supported start-ups, failing to survive beyond into local, regional, and international value chains. the initial grant. 26 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

6.6.2 Low value-addition in domestic and export systems, reliance on imported inputs and a concentrated markets - MSMEs are only able to export buy-for-sell wholesale market, with few players. commodities and low-value-added products, limiting their potential in terms of value creation, higher margins, and 6.6.6 Limited MSME access to government job creation. Furthermore, MSMEs and cooperatives are procurements - Government procurement opportunities not adequately integrated into value chains, especially in tend to benefit well-established firms and there is no food processing. There is a lack of large-scale domestic mechanism to help newer, smaller firms take advantage of buyers for manufacturing (value addition) and exporting in government procurement opportunities. bulk (wholesale).

6.6.7 Market information deficit - There is no appropriate

6.6.3 Limited compliance with standards - The institution or one-stop shop to provide entrepreneurs capacity of Eswatini’s businesses to export, and often with necessary market information, including available to sell domestically, is limited by frequent lack of financing options, standards, tax information, commodity compliance with standards (sanitary and phytosanitary, prices, business-to-business (B2B) sales, and partnership quality, environmental). On the supply side, there is opportunities (industry events, grants, and prizes, etc.). limited availability of suitably accredited laboratories Institutions like SEDCO provide support with registration, and inadequately developed conformity assessment training, and capacity building, with most of the programs services. Currently the Kingdom has approximately 120 being available at a fee. laboratories of which only 12 are accredited. The 2023 National Regulatory and Quality Policy proposes specific 6.7 Pillar 6: Entrepreneurial Culture interventions that will help address this challenge. Eswatini’s entrepreneurs have been cited as having a

6.6.4 Cross-border trader challenges - Cross- copycat syndrome and weak entrepreneurial culture, with border trade affects the livelihoods, food security, and about 75% of MSMEs operating an informal enterprise. employment of small-scale traders, especially women. The Challenges to a dynamic entrepreneurial culture include Eswatini Revenue Services has been making continuous the following: improvements regarding cross-border trade. However, cross-border traders continue to face challenges such as 6.7.1 Entrepreneurship not well perceived - Most lack of support with export requirements and documents, entrepreneurs start ventures out of lack of jobs (necessity), limited access to credit, lack of information on regional rather than based on scalable ideas, sound business plans, trading protocols and services, robbery, gender-based or passion for becoming an entrepreneur. Entrepreneurship, violence, and confiscation of goods. therefore, is still seen as an alternative to unemployment, not a career choice. It lacks the “glamour” it enjoys in most

6.6.5 High price fluctuations - Prices of products and western societies, and therefore receives limited family inputs fluctuate significantly, mainly due to seasonal support. When job openings arise, they easily ditch the cropping and lack of appropriate storage, warehousing business for work. Confectionary products produced by a local MSME. ©UNDP 27 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Handicraft products by women MSMEs. ©EU

6.7.2 Limited risk-taking attitude - Youth, particularly private sector- led initiatives; and support to strengthen the university graduates, lack entrepreneurial mindset and are innovation culture through a National Innovation Policy. extremely risk averse. Families encourage well-trained graduates to pursue government or large company jobs The principal remaining challenges are: due to their reliability and stability. A few Swati leave the country for better opportunities, with most staying closer to 6.8.1 Expensive utility services - The high cost of basic home, symptoms of a risk-averse culture. services, such as internet, electricity, water, and sanitation, affects overall business operating costs.

6.7.3 Low acceptance of failure - failure is not perceived as a natural part of entrepreneurship, bringing stigma 6.8.2 Low internet speed - According to the Integrated and low self-esteem to those who have tried and failed, Business Enterprise Survey, 31.5 percent of firms stated and keeping others from trying. Even our media thrives that reliable internet is a major challenge in the country. on selling news about failed well known enterprises or entrepreneurs. 6.8.3 High transportation and logistics costs - Transportation and general logistics are expensive and

6.7.4 High barriers for women, youth, and people living there is a lack of alternatives to road or rail transportation with disabilities to become successful entrepreneurs for bringing in inputs/raw materials and getting same to - In addition to the barriers detailed above, these groups market. Road is the most preferred mode of transport in face barriers, including access to finance, which result Eswatini. in lower business survival rates for these disadvantaged entrepreneurs. 6.8.4 Restricted intellectual property (IP) laws - Eswatini is investing in Science & Technology Parks to drive the

6.8 Pillar 7: Technology and Infrastructure knowledge economy. There is, however, still limited IP protection laws, hindering firm-level R&D and innovation. Eswatini has invested well on its road, rail, and air There is limited knowledge by MSMEs of the IP regime and infrastructure, allowing for easier linkages to major ports supporting institutions, but the country continues to work and markets. Investments on the internet side however with partners like WIPO to build domestic capacity. have been slow, with broadband internet still being planned for roll-out. The average MSME suffers from slow internet 6.8.5. Low-tech agriculture - Agriculture is by far the most speed and high costs of internet. The recent Financing important sector for the Eswatini economy, contributing Models for MSMEs study raised several issues that relate more than 70 percent of rural employment. The country to the development of MSME supporting infrastructure. continues to have high impact of climate change, resulting Amongst these is the establishment of women-friendly in increased risk in primary agriculture. However, despite infrastructure and business environment, such as a publicly remarkable improvements in the past couple of decades, funded women entrepreneurs’ association; implementation the sector still operates at low productivity levels. of a performance-driven incubation programme, including 28 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) 7 | Policy Actions Honey produced by Magele Farmers. ©UNDP

7.1 Policy Review Process 3. Small-scale Pilot for novel solutions - When no existing evidence or best practice examples locally • Policy development and review in Eswatini is done or globally, MCIT will pilot innovative new initiatives under the Policy Development Guidelines developed tailored that have the potential to make a strong by the Public Policy Coordinating Unit (PPCU). impact, before scaling up. • The MSME Policy falls under the Ministry of 7.2 Key Crosscutting Issues Commerce, Industry and Trade (MCIT). In this regard, the MCIT together with relevant government ministries There are several key enablers that will have to be put in and agencies, including MoF, MoA, FINCORP, place in terms of effective implementation of this MSME NAMBOARD, SEDCO and EIPA will implement a set Policy, which include: of policy actions under each policy pillar.

7.2.1 Data collection and dissemination around • To be effective in terms of the policy recommendations MSMEs. Collected data could include characteristics like and strategies, the following were the key guiding size, behaviour, output, and location to inform a national principles in terms of defining and selecting strategy MSME information portal. The portal will serve as a one- options, including: stop shop for MSMEs from different sectors and stages of development, with a specific interest in expanding access 1. Leverage existing MSME initiatives in the country for MSMEs in rural communities. - For solutions that are already being implemented, either by MCIT, SEDCO, EIPA or other Government of 7.2.2 Active Policy dissemination and public Eswatini ministries and or agencies, MCIT’s SME Unit engagement. The 2018 MSME Policy, was poorly will play a coordinating role, ensuring complementarity implemented, owing to lack of awareness by some of the and alignment among existing programs, and will implementers, which was driven by lack of resources for suggest refinements and adaptations to the existing proper publicity campaign on the Policy. MCIT must have in initiatives when needed. place adequate resources to run a national campaign that promotes entrepreneurship and further aims to increase 2. Model new policy action on international best MSME awareness of the MSME Policy, MSME Portal practices - When no ongoing initiative is in place, and the various tools and support available to MSMEs in the policy actions draw on existing and relevant the country. The portal will also host an online learning international best practices, case studies and evidence management system (LMS) offering various free training adapted, which must be adapted to the local Eswatini for MSMEs. context. 29 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.2.3 Outward study missions: Eswatini’s neighbour, South Africa, has several great initiatives centred around MSMEs, that Eswatini can learn from, including SETA’s, the SA SME Fund, BEE (having guaranteed participation of MSMEs in corporate and state opportunities in SA). Beyond SA, government must undertake missions to countries that have leading MSME and entrepreneurship programmes to learn best practice that could be modelled to local context.

7.3 MSME Definition and Characteristics The policy defines MSMEs according to two criteria, being number of employees and turnover, as value of assets is not easy to measure and tends to be industry related, e, g. IT company with billions in turnover and only a few employees. Furthermore, MSMEs are not one homogeneous group but have different needs and are of different sizes, with differing capabilities. Informal and micro enterprises are disproportionately affected by costs compared to medium and large established firms. Table 1 provides a summary of the classification of MSMEs from informal to medium sized entities. Table 1: Eswatini MSME Definition Category Sub-category Employees Turn-over Micro-Enterprise Informal 0 0 Micro-Enterprise newly Formal 0 to 10 Up to E50,000 established Micro-Enterprise local Formal 0 to 10 Up to E60,000 market focused Small Enterprise local Formal 11 to 20 Up to E500,000 market focused Small Enterprise export Formal 11 to 20 Up to E3 million ready Medium Enterprise Formal 21 to 60 Up to E8 million The definition above, should be taken in the context of different needs and challenges. Table 2 below provides a the different characteristics and requirements of MSMEs, summary of the different MSME characteristics, across the in ensuring that interventions and support considers their continuum. Table 2: Characteristics and Treatment of MSMEs Company SME Type Core Characteristics Support Required Tax Status Registration Micro - Informal Independent workers in Support for workers (e.g., Nominal Exempt various fields (e.g., one childcare centres) and person operation, freelancer, customers. vendor, mechanic, farmer, welder, photographers, etc. Grants and inexpensive Major source of employment. formal lending to help them formalise. Low wages, low productivity, and minimal contribution to Strong business development tax. services. 30 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Micro - Formal Entrepreneur at early stage Cultural and educational Nominal Exempt of enterprise or with business ecosystem that encourages idea, newly registered or few entrepreneurship. years old. Access to business Groups with innovative ideas development services and at proof-of-concept stage. development of entrepreneur capabilities. Small - Locally Most at this stage are in the Limited value adds to the local Nominal Non-exempt focused supply of goods and services. economy. As job creators Limited value addition on and suppliers, can benefit goods with most relying on from trade finance, border government as main client. improvements. Increases in economic activity can expand Growth potential constrained demand for these entities. by domestic income levels, small market and limited Improvements in logistics for investments in technology cross border movement of and skills development. goods is key. Working capital and delayed payments from clients are major challenge financially. Small - Small exporter, with fewer Support to the entity to scale Nominal Non-exempt Exporting/ than 50 employees, targeting and create more jobs and out Export Ready few markets. growers. Most of the entities in this Support to out growers to space are foreign owned and improve productivity and those in agro processing have quality. in place out grower schemes supporting community farmers. Medium Nominal Non-exempt

7.4 Pillar 1: Business Enabling Environment 7.4.3 Undertake education and promotion campaign on presumptive tax provisions for small businesses that Objective: Provision of conducive legislative and aim to encourage informal enterprises to formalise and regulatory reforms to make it easy and cost effective to further encourage entrepreneurship. Under presumptive start and run a business, whilst improving MSME dialogue tax, small businesses with turnover of up to E50,000 per platforms and streamlining tax requirements for new firms year are exempt from tax, whilst those with a turnover of (both start-ups and MSMEs) to decrease business costs up to E500,000 pay tax of 1.75%. Government agencies for new entrepreneurs. should provide tax education workshops. Agencies should also consider providing tax support to MSMEs, including Constraints addressed: Excessive cost, time and development of online accounting system and tax guidance processes relating to starting and running a business, booklet to be distributed to MSMEs and available for including burdensome taxation requirements for start-ups, download on the MSME Portal. low understanding of the tax requirements, and elevated levels of informality. 7.4.4 Development of services sector strategy to increase share of trade in services and support MSMEs in Policy Actions: trade in services through a proactive national strategy. The services sector is one where most youth are active (music,

7.4.1 Improve coordination of MSME issues within design, art, architecture etc), yet the supporting framework government through development and enactment of is not developed. The services sector is one of the sectors Small Business/MSME Act which will ensure that issues that have been liberalised under the AfCFTA and it is relating to MSMEs are captured in law and enforceable. important that proper legal frameworks and strategies are put in place to develop, promote and support trade in

7.4.2 Reduce cost and time for registering and renewing services. business through implementing a full online company registration and renewal system, including decentralisation of some functions under MCIT, MSME Unit and SEDCO. 31 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.4.5 Launch national campaign to inspire and perceived value of consulting services. encourage entrepreneurs and ecosystem players: Promote a “vibrant entrepreneurial MSME sector” by Policy Actions: facilitating access to financial products and services for MSMEs and making banks see the contribution MSMEs 7.5.1 Provide free BDS Services through SEDCO. make to the economy. This will include developing a Improve SEDCOs budget and resources so that SEDCO national programme (TV, Radio, YouTube) to showcase can provide free BDS to MSMEs. Most MSMEs requiring successful entrepreneurs locally and within the region, to SEDCO support are start-ups with no access to credit and encourage aspiring entrepreneurs. limited resources, which can be easily depleted by support that should be otherwise provided free of charge as per

7.4.6 Increase awareness for entrepreneurs about the international best practice. benefits of formality and disadvantages of operating informally, including development of incentives to 7.5.2 Expand EIPA’s Trade Promotion department to reduce informalities, for example, reducing the costs an Export Promotion Unit, operating under an export associated with business registration and operation like council led by ITD to grow MSMEs exports and further take having a tax-free threshold for entities with annual turnover advantage of the AfCFTA. of E60,000, i.e., informal micro enterprises.

7.5.3 Development of MSME Payment Policy which will

7.4.7 Capacitate and fully operationalise Small Claims help alleviate challenges of poor cashflow that emanate from and Commercial Courts to help reduce legal costs and delayed payments to MSMEs by established enterprises. contract enforcement for MSMEs, seeking legal redress. Retail supermarket chains, meat processors, construction firms and various other areas where MSME provide

7.4.8 Improve image and perception of SEDCO services tend to pay after 30 days, with some stretching incubation program, which is seen primarily as a low-cost as far as 90 days, including government. Government space for a start-up to operate rather than an incubator. must put in place a policy that enforces payment of micro and small enterprises within 14 days of supply of goods or

7.5 Pillar 2: Business Support service. Objective: Improve the business support system for 7.5.4 Setting up of Citizen Empowerment Council which entrepreneurs, including business consultants, mentors, will be responsible for the development of a strategy for incubators, and accelerators. broad-based economic empowerment, including providing an integrated, co-ordinated, and uniform approach to broad- Constraints addressed: A limited number of qualified based economic empowerment to effect the requirements consultants, mentors, and incubators/ accelerators and low of the Citizen Economic Empowerment Act; Locally produced honey. ©UNDP 32 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.5.5 Develop Code of Conduct for Public and Private ecosystem. RSTP though Central Bank of Eswatini’s institutions to guide the implementation of the Citizen FINTECH Unit can also support development of peer to Economic Empowerment Act in ensuring equitable access peer (P2P) lending platforms to help improve access to of MSMEs to government and public procurement of goods finance, especially for start-ups and high growth investment and services, including linkages with other regulations like hungry ventures. the Public Procurement Regulations of 2020.

7.5.10 Strengthen SEDCOs regional incubators to

7.5.6 Improve access to tailored business consulting provide better services and acceleration of MSMEs in rural service. To improve access to business services Eswatini, where most are located, targeting initially, the for entrepreneurs in different sectors and stages of four (4) regions. development, particularly those in rural areas, and in line with the PSDYE, review the roles and responsibilities of 7.6 Pillar 3: Human Capital and Management BDAs and develop recommendations to improve the outreach and effectiveness of BDA services for all types Objective: Improve relevance of skills produced by of rural entrepreneurs, including those who are semi- academia, improve access to technical, management skills educated. For established formal businesses, create a and know-how for existing and potential entrepreneurs and program like Brazil’s PEIEX,7 a program by the Brazilian employees that are necessary to effectively start and run Export Promotion Agency that focuses on enhancing the a business. competitiveness of Brazilian SMEs by providing coaching and consulting on management and production best Constraints addressed: A tertiary education deficit, weak practices. Firms receive a standard competitive strength academia-market link, lack of entrepreneurship curriculum, assessment covering different areas. poor business governance, lack of management skills, and poor recordkeeping and bookkeeping.

7.5.7 Develop accreditation framework for consultants to improve quality of consultants. Develop training-of- Policy Actions: trainers courses for business consultants in top business schools and in partnership with consultancies, where the 7.6.1 Improve relevance and marketability of tertiary certificates of completion become a market standard for academic programs. This pillar seeks to close the gap quality. between academia and industry, which has contributed towards the skills mismatch as identified by the recent

7.5.8 Support development of mentorship networks skills audit by ESEPARC. The audit confirmed that skills and mentor’s database. Build mentor networks, primarily deficiencies - gaps, shortages, and mismatches - are in partnership with existing incubators and accelerators, present in all three sectors (parastatals, private, and academia, and start-ups, MSMEs, and large enterprises , public). Furthermore, academia needs to focus on areas including accreditation systems and KPI driven systems to that have been found as shortcomings with regards to local M&E of mentors. entrepreneurship and business success. There is clearly a need to design courses focused on management and

7.5.9 Improve coordination between MICT and MCIT technical needs of firms in targeted sectors, led by MoE to leverage facilities like the RSTP as accelerators and and key ministries and affiliated agencies and further incubators of a dynamic tech driven entrepreneur, with create a plan for tertiary institutions to develop and foster potential to contribute to country’s entrepreneurship better industry linkages and practice in their curricula. Ice cream produced by Scoops and Giggles. ©UNDP 33 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) Glassware produced by Ngwenya Glass. ©UNDP Actions could include for example, inclusion of industry learn to code, and connects them with companies for leaders in academic boards; invite industry professionals immediate hiring. Results are impressive, with 75 percent to teach and provide guest lectures and seminars; invite of women finding permanent jobs and tripling their income businesses to submit industry problems for solution by upon graduation. science and business students; integrate paid internship programs in curricula requirements for graduation in 7.6.4 Improve business governance. Develop short business and engineering degrees; support active alumni guides and courses on basic business governance and associations; and integrate e-learning as well as introduce disseminate the information via the Entrepreneurship workplace learning, a model that includes practical training. Portal, PSF and its chambers, business schools, and other Government should consider review and revival of the relevant agencies. Providing concise, relevant information training rebate policy, as a financing instrument for ongoing to start-ups, MSMEs, and large enterprises in the form of education. electronic or paper brochures has proven effective. For example, the Inter-American Investment Corporation,

7.6.2 Introduce entrepreneurship curriculum in part of the Inter-American Development Bank, launched Secondary Schools. In collaboration with MoE and the FINPYME App, which included several such guides on affiliated agencies, including UNICEF, develop an basic accounting, marketing, and governance, and helped entrepreneurship course with a view to introducing an thousands of entrepreneurs improve. entrepreneurship curriculum in secondary schools and create a plan to strengthen applied topics, such as business 7.6.5 Strengthen customer service and service delivery plan writing, marketing, basic financial modelling, and across all sectors. In coordination with MCIT and MoE, BE, SWOT analysis. Government should continue supporting FESBC, UNESWA, and other relevant agencies, develop initiatives like Junior Achievement (JA), an organization awareness-raising and training programs to instill the that teaches entrepreneurship to in-school youth. culture of customer service orientation among both youth preparing to enter the workforce and existing businesses.

7.6.3 Improve availability of technical and vocational Conduct training on customer service, client satisfaction, skills training. Technical skills are not just learned in the and market research for tourism and other service-oriented formal educational system. Private sector providers can businesses to raise awareness on the importance of also play a big role in delivering technical training to out-of- satisfying and retaining customers for business long-term school populations, potentially helping to provide training growth and success, including provision of online training opportunities to disadvantaged groups, including women, resources via the one-stop-shop portal. Support should be youth, and people with disabilities. In Latin America, given towards creation of a business forum to recognise Laboratoria uses data-driven models to identify young and promote customer service professionalism, support women with high potential, but who are unable to access business competitions on customer service, and host good education. It then takes these women through an learning and exchange events to increase the profile of the intensive six-month technology boot camp, where they importance of customer service across all sectors. 34 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) MSMEs need to be supported to access funding. ©Pixabay

7.7 Pillar 4: Financing funds and order financing of government clients who may take longer in making payments. Government should be Any attempt to address the access-to-finance constraint of wary of having too many institutions, with minimal funding, MSMEs must treat microenterprises separately from SMEs. all managing government funds to channel to private In addition to incentivizing microenterprises to formalize, the sector. The costs of administration and the learning curve Government must support the development of an efficient does affect success. Instead, focus should be on building microfinance market by providing a conducive regulatory capacity of existing institutions and provision of cheaper framework, initial capital, and low-cost lines of credit for capital to institutions with a development finance mandate. on-lending. FinCorp, for example, while fundamentally a microfinance institution has a very high cost of capital for 7.7.3 Set up a joint advisory Risk Assessment Working the segment of the market they serve. Group comprised of industry experts and stakeholders to consider the adoption and diffusion of modern best Objective: Improve entrepreneur ability in terms of better practices in MSME risk assessment, and to encourage governance and BDS to increase access finance for relationship lending. This will help is reforming the current business growth from various sources, including equity, credit scoring approaches and risk assessment towards debt, and grants from public, private, and peer-to-peer behavioral analysis, use of artificial intelligence (AI) and lending sources. relationship lending. Constraints addressed: High collateral requirements, 7.7.4 Help financial institutions develop industry- limited investment products for early-stage businesses, specific financial products. Tailoring products to specific short lending tenors and grace periods, seed capital deficit, industries will allow financial institutions to more deeply venture capital and private equity deficit, isolated grant understand the lending risks associated with different programs, and limited use of crowdfunding. industries and products and explore options to meet MSME investment needs. Together with the BNR, carry out Policy Actions: a study to assess existing financial products in the market and provide recommendations.

7.7.1 Review the functioning of the SSELGS to help improve uptake, including setting up of minimum quotas 7.7.5 Set up a publicly funded women entrepreneurs for banks regarding submission of projects under the ‘association dedicated to promoting women scheme. Caution should be practiced in ensuring that entrepreneurship through capacity-building, networking financial institutions do not use the scheme to cover bad and related support, and collaboration with other performing loans as new applications to reduce defaults on institutions in the MSME ecosystem. According to the their own loans not covered by scheme. MSME Financing Models, Uganda, Kenya, and the United Republic of Tanzania, have for example, the Women’s

7.7.2 Set up dedicated concessional finance schemes Microfinance Initiative, which has helped aspiring women for micro finance enterprises and SMEs, including entrepreneurs to build an income-generating business to provision of modern MSME financing instruments improve household living standards. The initiative has been (factoring, leasing, venture capital funds). Government a great success, resulting in a fivefold increase in clients’ should consider channelling development loans through incomes in some cases within a relatively short period of micro-finance institutions who in turn will provide matching time (World Bank, 2018). 35 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.7.6 Promote learning and exchange of best practices 7.7.9 Promote competition in the fintech industry in financing. Work with the Eswatini Bankers Association and develop cooperation with interested fintech firms to (EBA), Bank and Non-Bank Financial Institutions, and better serve the start-ups and SMEs. This should include financial regulators to promote learnings and events where strengthening of the legal and regulatory framework to pave start-up and MSME-specialized local and international the way for crowdfunding and other innovative FINTECH financial institutions share their experience in providing solutions leveraging sandbox regulations within the Central and regulating debt and quasi-equity products to MSMEs Bank, which has set-up a dedicated FINTECH Unit. UNDP and start-ups. Create clear targets for during and after for example is working on piloting an Agri Fintech platform, events, such as creation of lessons learned reports, which is a supply chain financing platform for the agriculture ongoing dialogue and exchange platforms, piloting of sector, the Agri-Fintech Accelerator (AFA). certain products, and partnerships. Focus on the issues of collateral requirements, high interest rates, tenors 7.8 Pillar 5: Markets and Value Chains and grace periods, transaction speed/processes, and regulations governing anti-money laundering and other Objective: Expand access to domestic and export market financial good governance requirements. opportunities for entrepreneurs, including access to domestic and regional value chains.

7.7.7 Development of local credit bureau to help improve data collection and sharing to allow financial institutions to Constraints addressed: A limited domestic market, low have a 360-degree view on clients, through for example value-added exports, constraints to operation of cross- linking payments systems to reflect payments to utilities, border traders, high commodity price fluctuations due to store accounts, micro and cooperative loans etc. In this inefficient warehousing and inventory management, limited regard, local financial institutions working with RSTP, and access to government procurement, market information key ministries should work together towards setting up of deficit, and low compliance with standards. national credit bureau. Policy Actions:

7.7.8 Introduce credit scoring, to increase volume and lower costs. Credit scoring is a statistical method 7.8.1 Revise National Export Strategy to consider of evaluating the probability that a prospective borrower emerging issues, including the AfCFTA. The strategy will fulfil its financial obligations in respect of a loan. The should ensure that challenges faced by small-scale cross- predictive value of credit scores is generally higher than border traders are properly addressed. These include that of assessments based on credit histories (IFC, 2011). access to finance, security, access to information on taxes/ Hence, credit scoring as a technique corrects the downward duties and standards, and having help desks to assist with bias inherent in MSME loan evaluations, enhancing the custom formalities. likelihood that the loan will be approved. Hon. Minister Manqoba Khumalo poses with Ingelo Local Certification participants. ©MCIT 36 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.8.2 Review Agriculture Export Strategy to 7.8.8 Improve access to market information. Leverage investigate the key value chains with potential for domestic institutions like SEDCO, EIPA, government website and the and export markets, including value addition of key one-stop-shop portal to disseminate information to MSMEs. produce. The priority being to ensure that MSMEs are provided with relevant market information at the different stages of

7.8.3 Make government procurement programmes development, i.e., for start-ups, micro, medium and large more accessible to MSMEs. Government as one of the enterprises to decrease market information asymmetries major markets for MSMEs is better placed than private and business costs, promote B2B opportunities between sector to foster development and capacity building of buyers and sellers, including support to the Citizen MSMEs through preferred procurement arrangements. Economic Empowerment Act, and strengthen MSME-FDI E.g., using MSMEs (fruit & vegetables and butcheries) to linkages by connecting businesses with input providers supply fresh vegetables and meat for events, instead of and anchor firms in relevant value chains. awarding large established entities.

7.8.9 Development of farmer database. Eswatini’s

7.8.4 Development and management of export market challenges with managing agro-produce supplies is fueled channels, including online marketing and e-commerce by limited data on who is farming and what they are faming portal for MSMEs to access markets beyond Eswatini, and when will their produce get to market and in what especially in the advent of the AfCFTA. Electronic quantities? These unanswered questions always result in commerce (EC) has gained remarkable importance as a either over-supply or under-supply. The development of technology medium for firms to serve their consumers, a farmer database would thus go a long way in helping increase their geographic reach. institutions manage farmers and farmer scheduling better. Furthermore, such a database would help with farmer

7.8.5 Foster the development of an MSME - FDI aggregation to build competitiveness of otherwise smaller Linkages Strategy through the Code of Conduct within farmers. the Citizen Empowerment Act, which seeks to influence the behaviour of government and private sector, with regards 7.8.10 Facilitate adoption of standards amongst to providing access to their supply chain to MSMEs. MSMEs. To ensure that start-ups, MSMEs, and large The Codes of Conduct should aim to deliberately make enterprises adhere to relevant standards, conduct a study government procurement opportunities more accessible on how to ease and prioritize standards development to newer, smaller companies, which are more in need of across firm sizes in priority sectors. Ensuring that MSMEs support in the early stages. have the requisite support regarding the costs and facilities for ensuring compliance would help increase export ready

7.8.6 Develop an MSME Dialogue platform to improve entities and ultimately exports. This will initially include coordination and communication on issues relating to MSME ensuring that only relevant standards are required from competitiveness and business climate improvements. MSMEs, which will diminish the costs of adopting them and promote compliance. The study will also be accompanied

7.8.7 Set-up Fund to support MSMEs attend regional by a publicity campaign through the One-stop-shop portal trade fairs in a bid to increase awareness on local products to ensure that entrepreneurs are aware of the standards and suppliers, whilst helping expand markets for MSMEs that apply to their businesses and how they can comply. beyond the 1.2 million domestic market. Jam and sauces produced by Eswatini Kitchen. ©UNDP 37 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) A young handicraft producer displaying her wares at Swazi Candles. ©UNDP

7.8.11 Develop an MSME Cluster Strategy. Conduct support available to MSMEs and online training on thorough value chain analyses for targeted clusters and entrepreneurship, business management, finance, and identify opportunities for entrepreneurs in each region. When governance. clusters are applied to entrepreneurship, experts agree governments should not seek to create new clusters, but 7.9.2 Encourage sharing of best practice on rather reinforce existing ones.3 Organize entrepreneurship entrepreneurship. Exposing Swati entrepreneurs to other forums in each region to increase awareness of business dynamic cultures and promoting a culture of excellence opportunities among entrepreneurs. MSMEs should be amongst MSMEs is key in building innovative enterprises. encouraged to form associations and partnerships with key providers within their supply chain to help improve 7.9.3 Ensure equal opportunities and support for all efficiencies and competitiveness. entrepreneurs. Entrepreneurship-support organizations should ensure that women, youth, and people living with

7.9 Pillar 6: Entrepreneurial Culture disabilities, as well as entrepreneurs of all backgrounds, are offered the same treatment and opportunities. Risk aversion, fear of failure, and lack of capabilities can Stakeholders must create awareness on opportunities, be just as significant barriers as lacking the regulatory and entrepreneurship, and access to finance, especially among institutional support. women, youth, and people living with disabilities using national and community-based mechanisms, for example, Objective: Promote the culture of entrepreneurship and women business associations and at community and access to business opportunities for youth, women, and Inkhundla meetings. people living with disabilities.

7.9.4 Provide self-awareness training for local Constraints addressed: Risk-averse attitude; copy- entrepreneurs to boost confidence, personal brand cat syndrome; entrepreneurship not well perceived; low awareness and other soft skills, aimed at improving the acceptance of failure; and women, youth, and people living dynamism of local MSMEs. with disabilities do not always enjoy equal opportunities in entrepreneurship landscape.

7.9.1 Develop MSME One Stop Shop Portal (Entrepreneurship Portal) which seeks to communicate, educate, and inform MSMEs in the country about the contribution of entrepreneurship to the national economy, 3 “Clusters and the New Economics of Competition,” Harvard Business Review. Retrieved 1 November 1998. 38 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

7.9.5 Encourage entrepreneur networking and cross media and education packages. There is need to explore sharing experiences. Government and private sector business packages to support start-ups and innovative business support organisations (BSOs) should organise MSMEs, e.g., FINTECH developers. networking events and out-of-country missions to engage with successful entrepreneurs regionally and internationally. 7.10.4 Promote public and private sector investment Events like YouthConnekt for youth entrepreneurs and in improved agricultural technologies. Strengthen participation in regional and international expos and technology transfer efforts, for example, in irrigation, from trade fairs would enhance visibility and dynamism of local world leaders in agricultural technologies such as Israel, MSMEs. the United States, and Brazil (Embrapa). Partner with private sector and development agencies to support

7.9.6 Encourage innovation and creativity. Eswatini’s MSMEs with climate smart technologies to mitigate climate entrepreneurs have been classified as having a “copy- change and improve reliability. cat” syndrome, with most in wholesale and retail, targeting primarily government supplies. There is need to come up with programmes to drive innovation and creativity, leveraging facilities like the RSTP and development partners to support STEM in schools, science fairs, innovation challenges and competitions to deliver local solutions.

7.10 Pillar 7: Technology and Infrastructure Israel Objective: Improve entrepreneur access to technologies, infrastructure and innovations required for business growth and productivity, taking into account issues of Digitisation and Climate change. Constraints addressed: Unreliable internet, high cost of irrigation, lack of quality assurance infrastructure and low- tech agriculture. Policy Actions:

7.10.1 Invest in quality assurance infrastructure for target value chains. Lack of proper testing facilities relating to compliance with standards, limits potential for MSMEs to export. Eswatini has fewer exporting or export ready MSMEs. Prioritising investments in quality assurance infrastructure would help reduce the costs and further increase access of MSME produce in local retailers, whilst increasing the number of local products ready for international markets.

7.10.2 Improve post-harvest handling and storage infrastructure. Enhancing the business environment for smallholder-inclusive and private sector-led agri- Brazil food systems and value chains through rehabilitating or constructing of processing and storage facilities at strategic locations in the country amongst other proposed initiatives under the 2nd Generation Eswatini National Agricultural Investment Plan (ENAIP). These facilities can help in enhancing quality of produce, improving cost- efficiency of existing warehousing systems; building trust between farmers, transporters, and warehouse owners; improving farmer delivery on pre-season contracts; and 7.10.5 Improve digital literacy and uptake. The MCIT further build the capacity of farmer cooperatives to utilize in collaboration with development partners, will increase existing storage facilities and systems. Improved storage training and promotion of digital literacy to youth, women, and warehousing systems will also help stabilise prices people living with disabilities, and MSMEs in required and avoid product waste. digital skills to support the growth of entrepreneurship and technology adoption and support in promotion of data

7.10.3 Facilitate provision of fast, reliable, and storage solutions. affordable internet for MSMEs. The cost, speed and reliability of internet is challenge in Eswatini, with most MSMEs citing slow internet and high costs. Mobile entities like MTN and Eswatini Mobile have come up with social 39 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) 8 | Implementation Plan The custodian of issues relating to support of MSMEs in the country is the Ministry of Commerce, Industry & Trade, yet the implementation of interventions to support entrepreneurship development are scattered across different ministries, institutions, and agencies, making coordination efforts quite challenging. Much as the MCIT is the responsible ministry, collaboration and commitment of other ministries and agencies is very important for the successful implementation of the MSME Policy and development of a vibrant entrepreneur ecosystem. The key actors are MCIT, MoF, MoA, MoSCYA, SEDCO, EIPA, ERS, SWASA, NAMBOARD, ESEPARC, Eswatini Bankers Association, Eswatini Development Bank, NIDCS, ENIDC, MICT and RSTP. The respective roles of the key actors are summarised in the table below. Table 3: Key Actors and Respective Roles Ministry/Institution Role MCIT Line ministry responsible for commerce, industry and trade. Amongst its key objec- tives, is the creation of an enabling environment through streamlined and focused policies and legal instruments that will compliment Government’s effort to stimulate growth of small and medium enterprises. MoF Ministry of Finance is responsible for promoting macroeconomic stability and optimis- ing economic growth. Amongst such policies are budget, tax, and incentives issues for MSMEs. MoA Ministry tasked with primary goal of increasing the contribution of agriculture sector to economic development. Ministry has various programmes targeting MSMEs in agricul- ture. MoE Mandate is to provide access to relevant quality education at all levels to all Swazi citizens; considering all issues of efficacy, equity, and special needs. MICT Ministry tasked with provision of an efficient national ICT delivery framework for Swazi citizens, the public and private sector, including supporting national innovative sys- tems. MTAD Seeks to create an enabling environment for effective service delivery at Regional and Tinkhundla level. Administers Regional Development Fund (RDF). SME Unit To promote and stimulate SMME development and growth through effective service provision and establishment of legal and institutional framework to achieve competi- tiveness. SEDCO A state-owned organization established to create, develop, and promote MSMEs through entrepreneurship development and growth, including training, incubation, and business development support. EIPA Government agency mandated is to attract, encourage, facilitate, and promote local and foreign trade and investment in Eswatini. DCD The Department of Cooperative Development is mandated to support and facilitate the development of Cooperative Societies through promotion, business training and supervision. ESASCCO Eswatini Association of Savings and Credit Cooperatives, is an apex body for the Sav- ings and Credit Cooperatives of Eswatini. 40 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME) IRM Unit Tasked with creating a conducive environment for business by eliminating impedi- ments and procedures to reduce time and costs involved in doing business. ERS Collects taxes, oversees, and implements regulations related to taxes and customs duties, and ensures compliance with national tax laws. YERF The Youth Enterprise Revolving Fund provides development finance and support to Eswatini’s youth. SWASA Seeks to provide internationally recognized quality standards and conformity assess- ment services to improve business performance and promote trade. NAMBOARD Facilitates markets for farmers and supports farmers with production, storage, trans- portation, and distribution/sale of produce, including regulation of scheduled produce. MICT and RSTP MICT is the Ministry responsible for the development of an efficient national informa- tion, communications and technology delivery framework and the parent ministry for RSTP. The aim of the RSTP is to provide steadfast support for basic research and innovation and houses an IT Park and a Biotechnology Park. We do not have to reinvent the wheel and to a great will have to be convened to update stakeholders in the extent, the MSME Policy must leverage on existing public, private and civil society space regarding delivery frameworks. In this regard, the Policy will be implemented challenges and success and lessons learned, to allow for using existing institutional frameworks, with the addition evidence-based reviews. of the Council and Codes of Conduct to effect provisions of Citizen Empowerment Act . The institutional framework 8.1 MSME Institutional Framework that supports implementation of the policy and the M&E structure have thus been designed to reflect this and to MICT - SME Unit allow for a dynamic and responsive policy, which will enable continuous updating to reflect changes in the Given the cross-cutting nature and complexity of required operating environment and to incorporate lessons learned work to implement MSME Policy, the SMU Unit within during implementation. MICT, SEDCO, MoE, MoF, EIPA, MICT will technically coordinate the implementation and RSTP, and SWASA are the key leading institutions monitoring of the MSME Council, with periodic guidance implementing the seven pillars of the MSME Policy. from the Citizens Economic Empowerment Council. The SME Unit will further provide support to implementing Ensuring the capacity of these lead institutions is, therefore, institutions, partners, and development agencies to play crucial for the success of this policy, and MSME issues their respective roles to ensure adequate implementation. need to be owned by each stakeholder at the most senior Institutions like EIPA, who looks after trade promotion and level. MICT as the lead Ministry and overall policy lead, will NAMBOARD on markets agro produce, need to be active play the role of coordinator and high-level policy supervisor in making this policy alive through active programmes to ensure traction and implementation. Periodic meetings targeting export readiness, productivity, and production. Table 4: MSME Policy Institutional Framework Ministry of Commerce, Industry & Trade - SMU Unit: Policy Lead Business Business Finance Human Cap- Markets & Entrepreneur- Infrastructure Enabling En- Support ital Develop- Value Chains ship Culture & vironment ment Technology 1 2 3 4 5 6 7 MICT (IRM SEDCO MOF MOE EIPA RSTP SWASA Unit) Access to Budget Secondary Export readi- Accelerator Quality Assur- BDS Tax Tertiary ness Programs ance Labs MoF: Tax & Mentorship Incentives Technical Markets Grant Support Incentives Incubation Management Innovation MoA Coaching MICT NAMBOARD Climate ERS: Tax Info on MICT Markets MICT Smart Tech- Awareness Financial Business Value Chains Cultural Ex- nologies Products Governance changes New products Stipends RQID CFI Promoting Equal Access Financial Standards to Opportunity Literacy ESCCOM Internet 41 Eswatini National Policy for Micro, Small & Medium Enterprise (MSME)

8.2 MSME Supporting Frameworks Entrepreneurship Monitor (GEM), which measure the quality and dynamics of entrepreneurship ecosystems at

8.2.1 Eswatini Quality Awards - Through SWASA, national and regional levels. the Ministry of Commerce, Industry and Trade also has a national programme to encourage quality amongst 8.4 Legal and Regulatory Implications local entities through the Eswatini Quality Awards are meant to promote business excellence in businesses and The MSME Policy will require further legal and regulatory organisations across all sectors in the country. reforms for proper implementation and development of conducive entrepreneurial ecosystem. Implementation

8.2.2 Entrepreneurship of the Year Awards - Government of some of the policy actions will require a review of the should maintain and upgrade the awards to also encourage current legal framework, including: grass roots, formalisation, customer service, and women amongst other key motivators for MSMEs. a. Review of tax and related tax incentives for MSMEs

8.2.3 Creation of Private Sector /MSME Working Group b. Regulations for public and private procurement, - This group will be a smaller coordinating forum, where private capital investors (angel investors, venture government, private sector development and organised capitalists, equity investors, social impact investors, labour actors coordinate with development partners, family foundations, and high net-worth individuals); civil society, and academia on issues relating to private sector and MSME development. The group can create c. Digital trade regulations covering eCommerce and various sub-sector working groups like working group on crowdfunding, peer to peer lending and start-up informality or on youth employment or an MSME Finance matching funds. Working Group. The forum could be key in the successful implementation of the MSME Policy by leveraging d. Setting up of Citizen Empowerment Council development partner support and expertise, Given the low implementation rate on the previous policy, coordination e. Development of Corporate Governance Guidelines and resources are critical success factors. f. Development of CEEA Codes of Conduct

8.3 MSME Policy Impact Monitoring and Evaluation g. Development of MSME Payment Policy The Government of the Kingdom of Eswatini, through the h. Development of national Private Sector Strategy Ministry of Commerce, Industry and Trade (MCIT) will put significant effort into monitoring the implementation of this i. Enactment of an MSME Business Act. policy and taking appropriate actions when expectations are not met. The aim for a country like Eswatini with only less than 30% of registered entities paying tax, is to reduce informality Moving forward, it’s crucial that the Government puts through a programme that encourages entities to be formal in place, mechanisms to measure the performance and putting in place incentives to stay formal and grow to of the entrepreneurship development ecosystem in taxpayer status. Eswatini. This will help in monitoring the status of the domestic entrepreneurship ecosystem and allow for 8.5 Implementation Plan Log Frame benchmarking of Eswatini in terms of regional and global performance. MICT, in collaboration with the ESEPARC The Implementation Action Plan Log Frame, with details of and RSTP, will develop an impact M&E tool benchmarked the output, outcomes, indicators, and responsible agencies against international best practices such as the Global organized by pillar is attached as annexure to this policy Entrepreneurship Development Index (GEDI) and Global document. Hon. Minister Manqoba Khumalo poses with Ministry of Commerce and Industry and Trade officials. ©MCIT 42 ANNEXURE A MSME ACTION PLAN 2023/24 – 2028/29 ESWATINI MSME NATIONAL POLICY VISION “To support the development of a vibrant entrepreneurial MSME sector that contributes to the economic development of Eswatini through innovative and creative business practices supported by an enabling environment, which fuels transformation of rural households and other communities in productive economic structures”. MISSION To promote and stimulate a deep-seated entrepreneurial culture in the MSME sector, build capacity, improve opportunities and supportive trade relations for MSMEs, reduce bureaucracy, provide for adequate financial and other support by building strategic partnerships, so as to achieve competitiveness of the sector. POLICY OBJECTIVES 1. Improve business environment for MSMEs, including measures to reduce red tape and reduce the cost of doing business. 2. Improve business support services and monitoring systems targeting entrepreneurs. 3. Improve access to skills and capabilities of existing and potential entrepreneurs to effectively start, grow and manage a business. 4. Improve entrepreneurs’ ability to access finance, including equity, debt, peer to peer lending and grants.. 5. Expand access to domestic and export market opportunities for entrepreneurs, including holistic development of key value chains. 6. Improve key enabling infrastructure especially in the areas of standards and improve entrepreneurs’ access to technologies, including internet and climate smart innovations for business growth and productivity. 7. Promote the culture of entrepreneurship and equitable access to business opportunities for all entrepreneurs, especially youth, women and people living with disabilities. 43 Outcome Output Indicator Baseline Activity Responsible Timeframe Entity Pillar 1: Enabling Business Environment Predictable Easy Enactment of Currently no 1. Study to MCIT (lead), Medium- business enforcement of Small legislation to consider AG’s Office, term environment support Business support growth development of MoF, MP’s, including initiatives and Act. of MSMEs in legislation to SEDCO, EIPA, reduced cost policies the country. support MSME ESEPARC, and time for through sound development in FESBC, BE. registering, legal the country. running, or framework. 2. Development renewing of Small company Business Act. and licenses Modern New Trading Trading 1. Develop MCIT (lead), Short-term Trading Licence Licence Order regulations for MoF, MPs, Licence regime. No. 20 of 1975 the Trading SEDCO, EIPA, regime and and Trading License Act. FESBC, BE. clarity on Licence definition of Amendment MSME. Act No. 9 of 2011. Company Online Current 1. Revise MCIT (lead), Short-term registration business business Companies Act ESEPARC, simplified and registration reservation of 2009. SEDCO, EIPA. costs reduced system and 2. Develop online for micro and operational. registration registration small process. form for enterprises. Online companies. payment 3. Provide operational. downloadable Mem & Arts Benchmark template study on online. costs of 4. Allow for online starting and payment for running a local and FDI. business 5. Conduct between benchmark Eswatini and study on costs comparator of registration countries. for MSMEs to set local Study on registration opportunity fees. costs of 6. Conduct study cancelling to look at company foregone registration revenue by and licencing government if fees. we scrap company registration fees and trading licence vs potential benefits. Decentralised Regional Current 1. Set-up MCIT (lead), Short-term government office approach company and SEDCO, services to opened in where trading licence Tinkhundla business. one region renewals are registration and Ministry outside done in renewal Hhohho. Mbabane, with services in all some activities four regions. in Manzini. Reduced costs Small claims No. of days for 1. Implementation MoJCA (lead), Short-term and time for court and commercial of electronic AGs Office, contract/Legal commercial case 44 issues and courts case to get management MCIT, IRM mitigation for properly attended. system. Unit. MSMEs resourced. 2. Service charter regarding days and procedure. Relevant, Number of Increased 1. Study on MCIT (lead), Medium- dynamic and campaigns to number of current market SEDCO, term improved enhance entities needs, ESEPARC, SEDCO SEDCO graduating including study UNESWA incubation image as from SEDCO tours to regional (Research programme. incubator. programmes and best Centre). after practice MSME incubation incubators. period. 2. Implementation of study Number of regarding entities leaving improvement of SEDCO SEDCOs Incubation. incubation programme. Harmonised Small traders Current 1. Stakeholder SME Unit, Short-term by-laws provided fair municipal by- forum between Municipalities, amongst and laws, fees and municipality, CIEAS, MoHA, municipalities equitable access rights. MSME Unit, MHUD. regarding treatment Home Affairs permits for within and other key small traders. municipal stakeholders to trading discuss on spaces. issues of inner- city traders and cross border traders. 2. Review of current approaches within various municipalities regarding fees and treatment of traders, with a view towards harmonising treatment at local government level and alignment with national laws and policies. Reviewed tax Conducive To be 1. Public MoF (lead), Medium- requirements tax regime determined. awareness MCIT, term for start-ups for start-ups campaign on SEDCO, and MSMEs to and MSMEs Presumptive ESEPARC. reduce in place, Tax to MSMEs, informality and including tax- including encourage free publishing of MSMEs. thresholds to tax-free reduce thresholds to informality. encourage formality. 2. Implement a simplified tax regime for start-ups and MSMEs. 45 Increased Communicati Current levels 1. Organise MCIT (lead), Short-term awareness on on strategy of informality. national MoF, ERS, benefits of to address awareness EIPA, SEDCO. being formal. informality. Current budget campaigns on towards formality. Campaign to addressing 2. Develop encourage informality. coordination formality and structure that communicat includes e benefits of informal formality. workers and MSMEs and the government. 3. Media sensitisation and ambassadors on formality. 4. Communicatio n of packages available to formal entities. Increased Communicati % of MSMEs 1. Organize ERS (lead), Short-term awareness on on strategy aware of tax awareness MoF, MCIT, benefits to improve requirements. campaigns at SEDCO, paying taxes tax (To be Tinkhundla MTCA . compliance determined) level on role of amongst taxes and MSMEs. New tax programmes registrations available to Survey on by MSMEs. formal perception of enterprises. MSMEs 2. Conduct around quarterly media paying taxes. campaigns to sensitise and encourage MSMEs. 3. Consider approaches and strategies to improve benefits of formality. Improved Motivational To be 1. Organise MCIT (lead), Short-term culture and events determined. motivational MoE, SEDCO, perception of hosted. sessions with EIPA, FESBC, entrepreneurs successful BE, JA, hip as career Strategy/pro entrepreneurs. Enactus. option. posal to 2. Support encourage development of private private investment incubators to around drive incubation. entrepreneurial Inclusion of culture. entrepreneur 3. Include ship in most entrepreneurshi academic p in most streams. technical skills training. Pillar 2: Business Support Vibrant Improved Database of No list 1. Identify MCIT (lead), Short-term business access to BDS currently existing BDS ESEPARC, support tailored providers. exists. providers and EIPA, SEDCO. 46 organisation consulting develop BDS s and services and National No framework Database. systems for provision of accreditation in place. 2. Development entrepreneur free Business framework of s and Development for BSOs, To be accreditation MSMEs. Support consultants, determined. framework for services (BDS) coaches and Business to MSMEs mentors. Support Organisations KPIs for (BSOs), with BSOs, standadised MEL consultants, No KPIs for frameworks. coaches and consultants 3. Create a mentors. and coaches in performance- place. based Study on framework to SEDCO engage approach SEDCO professional and impact profiles, BDS providers. and brochures and 4. Review the role recommenda website. of SEDCO, tions for including the improvement costing of their . services and develop Capacity recommendati building ons to improve programme their MSME for BSOs. support services Sub- across the committee country. within the 5. Consult with MSME private BSOs Dialogue along with platform to banks and encourage other dialogue development between partners on BSOs and issues relating government. to MSME support. 6. Ensure continuous capacity building & professionaliza tion of active BSOs. 7. Establish a coordination platform for BSOs across the country to improve efficiency and effectiveness in service delivery. Expanded Physical and Current EIPA 1. Working EIPA (lead), Short-term export online based Export closely with MCIT, MoF, promotion and export readiness ITD to identify MoA, SEDCO, support training programme exporting SWASA. programme programme and training MSMEs in the under EIPA developed. approach. country. 47 Survey of 2. Development entities ready of programme to be to increase supported number of towards export ready export MSMEs over readiness. time. 3. Development Public of export campaign to promotion encourage fund for exports vs MSMEs to domestic participate in market. trade fairs and exhibitions. Improved MSME Currently no 1. Feasibility MCIT (lead), Medium- MSME Payment payment policy study to MoF, FESBC, term cashflow Policy in place. investigate BE. through approved introduction of development and MSME of MSME implemented payment policy. Payment . 2. Development of Policy MSME Payment Policy, including model contract text for MSMEs. 3. Approval and implementation of the MSME Payment Policy. Increased Digital To be 1. Support CFI, MoF, Medium- financial onboarding determined. development of MCIT, RSTP. term inclusion of the policy for digital tools like informal MSMEs in mobile money, workers and place. which have MSMEs. potential for reaching the last mile and ensure inclusion. 2. Technology adoption loans and grants for MSMEs. Increased Citizen Citizen 1. Setting up of MCIT (lead), Short-term share of Empowerme Economic Citizen MoF, AGs MSMEs in nt Council in Empowerment Empowerment office. public and place and Act. Council. private operations, 2. Development of procurement. including codes of related code conduct to of conduct. support procurement from MSMEs. 3. Review of sectors that can benefit from such codes, e.g., using local transporters to bring fuel into the country; having a set minimum % of 48 produce to be sourced locally by wholesalers, retailers, and hospitality sectors. 4. Development of incentives for private sector offtakers. Availability of Number of No programme 1. Identify and MCIT, Continuous high-quality consultants to identify and capacitate ESEPARC, business that provide develop existing BE, FESBC, consultants high quality consultants in consultants BSOs improved . business place. providing consultancy business services. services. 2. Develop training-of- trainers courses for business consultants in partnership with local universities and consultancies. 3. Offer tax write- offs for consulting firms that provide services pro- bono to start- ups and MSMEs. Development Number of No programme 1. Identify MCIT, Continuous of mentorship entrepreneur to identify and mentorship ESEPARC, networks s who develop networks. BE, FESBC, supported benefited mentors in 2. Promote BSOs from place. mentorship mentorship from successful networks. entrepreneurs and business leaders and encourage investment from same as potential angel investors. 3. Develop national campaign to encourage mentorship and the importance of mentorship to MSME growth. 4. Introduce incentives for mentors such as opportunities to attend special events. 49 5. Identify MSMEs with high growth potential and support them to graduate to the next stage through mentorship support. 6. Set-up fund to pay part of the mentorship costs on behalf of MSMEs. Improved MSME Annual MSME 1. Set up MSME MCIT, Short-term coordination Dialogue Dialogue Dialogue SEDCO, IRM between MICT Platform Platform platform to Unit and MCIT, operational. workplan. improve MoA and MoF. entrepreneurial ecosystem. 2. Ensure platform convenes at least once per quarter. Improved Number of Current 1. Identify and SEDCO (lead), Medium- support to new models SEDCO assess MCIT, EIPA, term MSMEs of business incubation performance of RSTP. through incubators model. existing regional piloted at incubation incubation/ regional programmes acceleration business and programs. level. institutions. 2. Foster the development of start-up incubators, reinforcing start-ups link to RSTP and universities. 3. Partner with private sector, academia, and development partners to Pilot and Launch business incubators in regions (focused primarily on agro-industries and Agri-tech) Pillar 3: Human Capital Development Improved Relevance and Business/ Current rate of 1. Provide web- SEDCO (lead), Continuous relevance of marketability of entrepreneur employment of based training Academia skills tertiary graduates from or webinars on (UNESWA, ial graduates produced by academic various digital Limkokwing, academia, programs institutions. marketing, MICT, SCOT and improve improved. % of tertiary service delivery etc), MCIT, access to graduated Graduate and other RSTP, EIPA, technical, employed unemployment essential FESBC, BE. management within a year rate. courses to skills & improve and after increase online graduation. 50 know-how capabilities for for MSMEs. Increase risk entrepreneurs. affinity of 2. Facilitate SMMEs. appointment of industry leaders to academic boards. 3. Create a plan for tertiary institutions to better integrate industry linkages in their curricula. 4. Organize guest-lecture workshops with industry leaders and professionals to teach and provide guest lectures and seminars to tertiary students. 5. Organize competitions amongst tertiary institutions on local case studies or industry problems where students come with solutions. 6. Create an action plan to introduce workplace learning, a model that includes practical training. Availability of TVET Status of TVET 1. Revamp and MoE (Lead), Medium- technical and colleges Colleges. build capacity MoLSS, MoF, term vocational of existing MICT, revamped skills training. Current government Academia, and incentives TVet centres USAID, EU, capacitated. programme. and colleges. UNDP. 2. Support the Developmen development of t of private incentives technical skills for private training sector to institutions invest in targeting out of TVET and school youth. accredited 3. Create a on the job network of training. public and private training institutions to 51 E-leaning share platforms for experiences technical and effectively skills training coordinate in place in activities. most 4. Partner with colleges and development institutions. agencies and private sector Action plan to develop for subsidised and expanding funded TVET programmes. training to 5. Encourage persons institutions to living with adopt digital disabilities, approaches women, and like e-learning youth. platforms and entrepreneursh ip. 6. Develop incentives for private sector to fund training and support on the job training of locals through schemes like the Training Rebate Policy. 7. Create an action plan to provide training opportunities to disadvantaged groups, including women, youth, and persons with disabilities. Entrepreneurs Secondary Current 1. Conduct MoE (lead), Medium- hip curriculum school Secondary assessment of MCIT, term in Secondary entrepreneur school current SEDCO, Schools ship curriculum. secondary RSTP, JA, introduced. curriculum school Enactus, operationalis curriculum and UNICEF. ed. develop an action plan to Training of introduce teachers entrepreneursh programmes ip curriculum in on secondary entrepreneur schools. ship and life 2. Prioritize skills entrepreneursh developed ip programmes and like JA and implemented Enactus and . encourage adoption of digital educational tools like zoom, 52 skype, Webex and Facebook. 3. Organize physical and online (smaller cohorts) training of teachers on how to deliver essential training in business plan writing, basic financial modelling, SWOT analysis, and incorporate practical “how- to” courses in the curriculum. Business Number of To be 1. Set-Up SEDCO, CFI, Short-term governance enterprises developed. National MCIT, EIPA, improved. Governance ESEPARC, with Board for public FESBC, BE. operational and MSME and effective support, e.g., governance Rwanda structures. Governance Board. 2. Introduce Governance training programmes under SEDCO and other training providers. 3. Develop MSME Business Governance Guidelines and public campaign to improve MSME governance. 4. Develop a Digital MSME One Stop Shop, being an entrepreneursh ip portal to educate and disseminate information. 5. Develop mechanisms to collect and disseminate concise, relevant information to start-ups, MSMEs and large enterprises via 53 the portal and print material. Customer National Current 1. Develop MCIT (lead), Short-term service and campaign to Customer awareness- SEDCO, EIPA, service encourage Service raising and SWASA delivery and Awards. training training events strengthen programs to & awards customer instil the culture organised. service. of customer service Customer orientation. Service 2. Conduct Awards for training on MSMEs, customer especially service, client tourism and satisfaction, retail. and market research for Training tourism and programme other service- on customer businesses. service. 3. Increase the awareness of existing businesses on the importance of satisfying and retaining customers. Pillar 4: Finance Improved Revised % increase in Current % 1. Consolidation of CBE, MoF, Short-term access to administration fund uptake uptake of fund guarantee MCIT, FESBC, finance for of SSELGS in and and schemes in the BE MSMEs, terms of applications. applications. country; through access and 2. Set-up KPIs for better proximity to % loans BI and NBI governance MSMEs. approved regarding loans and BDS. under under the scheme by scheme, e.g. FIs. 5% of total portfolio, including incesntives for institutions providing above threshold. 3. Set-up SSELGS desk within partner financial institutions to encourage uptake. 4. Study to look at moving administration of the fund to entity like FINCORP. 5. Work with Bankers Association and FIs to set up minimum annual thresholds for financial 54 institutions in terms of loans approved under the scheme. 6. Putting in place clear mechanisms to protect fund from bad performing loans being channelled through the fund. Development Concessiona Current cost of 1. Government MoF (lead), Medium- of dedicated ry funding for capital for recapitalisation ESEPARC, term concessional MSMEs in MSMEs loans of existing funds MCIT, CBE. funding for place. within FIs. like FINCORP MSMEs to target supported. specific priority sectors, 2. Set-up of co- financing mechanism or matching funds management with private fund managers and institutional investors targeting MSMEs. (e.g., SA SME Fund). SEDCO Review of 1. Conduct an MCIT (lead), Short-term capacity and SEDCOs organizational ESEPARC, effectiveness offering, assessment of SEDCO. reviewed and including SEDCO, its improved. charges, products and benchmarke services and d against propose regional measures to peers. improve. 3. Strengthen and % increase in regularly number of conduct entities monitoring, getting evaluation and funding after learning from SEDCO. SEDCO operations. 4. De-risking access to finance for existing and new Guarantee fund scheme applicants through effective BDS. Improved risk Joint Risk TBD 1. Set up Joint CBE (lead), Short-term assessment Advisory advisory group MCIT, Eswatini approaches Working between Bankers leading to Group industry, Association, improved operationalis government FSRA, access to ed. and civil society finance and organisations reduced supporting 55 asymmetry MSMEs to between FIs dialogue around and MSMEs. sector improvements and innovative credit risk evaluation approaches. 2. Organize regular dialogues on financing through learning and best practice exchange. 3. Study to consider introduction of credit scoring to increase volumes & reduce costs facilitated. 4. Study tours for working group to look at lending practices and share best practice with other countries. 5. Quarterly working group meetings chaired between Bankers Association and MSME Unit. 6. Action plan to improve credit scoring and risk assessment of MSMEs applications. Development Study on To be 1. Carry out MoF, MCIT, Short-term of industry MSME developed. assessment of Bankers specific existing Association. Financial financial financial products Products in products facilitated. Eswatini. targeting MSMEs in the Communicati Eswatini on and market, including gaps. Engagement e.g., Financing Plan for Model for Financing MSMEs. Models for 2. Engage and MSMEs. encourage Bank and Non- Bank financial New sector - institutions to specific implement financial 56 products in recommendatio place. ns from the assessment, including recent Financing Models study. 3. Support development and operationalizati on of new industry specific financial products for target priority sectors. Women Developmen To be 1. Conduct a MCIT, DPMs Short-term entrepreneurs t of publicly developed. feasibility study Gender Unit, hip issues funded on BE, FESBC. prioritised women establishment under women MSME of a women led women Association MSME MSME supported. association. association. 2. Mobilize resources for the association, including champions and potential members. 3. Facilitate the launch and operationalisati on of the association. Development Study on Current 1. Conduct study MoF, MCIT, Medium- of local credit introduction reliance on SA on the MICT, Eswatini term bureau and based ITC for development of Bankers facilitated. development risk weighting. local credit Association. of Local bureau to Credit improve credit Bureau reporting and operational. information to reduce Local Credit asymmetry. Bureau 2. Study to identify operational. relevant, accurate, timely and sufficient data to inform MSME credit reporting systems, including identification of systematic processes to ensure data sources are reliable, appropriate, and available. 3. Encourage development of private credit bureau. 57 Increased Number of Current No. of 1. Development of CBE (lead), Medium- competition in FINTECH registered and regulatory FSRA, MoF, term FINTECH solutions operational framework for MCIT, MICT, space applying FINTECH crowdfunding RSTP. under CBE solutions and and peer-to- FINTECH companies. peer lending. Unit. 2. Promote digital funding Innovation / platforms and challenge approaches like competitions crowd funding to encourage and crowd FINTECH farming. solutions. 3. Encourage innovative financing and regulation of same, e.g., peer-to-peer lending platforms. 4. Launch competitions or challenges within FINTECH space to develop solutions that drive inclusiveness, information access and improved MSME operations. Pillar 5: Markets & Value Chains Domestic National NES strategy National 1. Engage MCIT (ITD – Short-term and export Export document. Export consultant to lead), EIPA, market Strategy (NES) Strategy (NES) develop new FESBC, BE, opportunities revised and 2006. Export Strategy SWASA. for national for Eswatini. entrepreneur priorities 2. Validation and s improved. clarified. implementation of export strategy to help grow number of export ready MSMEs. 3. Dissemination and public awareness on the NES. Government % of ESPPRA 1. Conduct ESPPRA Short-term procurement government Procurement awareness (lead), MoF, programmes procurement Regulations, workshops MCIT more targeting 2020. between accessible to MSMEs and procuring MSMEs. start-ups. agencies, regulator and Awareness MSME workshop for business procuring owners. entities, 2. Update and regulator and disseminate via MSMEs. existing communication channels 58 Database of including the Made in Trade Eswatini Information MSME Portal and products. Entrepreneursh ip Portal the list of Made in Eswatini products available for public procurement. 3. Regularly monitor, evaluate, and learn. 4. Monitoring of government and private sector procurement in terms of application of provisions. Management MSME To be 1. Study to MCIT, Medium- of export eCommerce developed. investigate SEDCO, EIPA term market platform and revitalisation of channels Trading Trading Hub. developed. House 2. Upgrading of operational. Trade information portal or development of new portal to full eCommerce portal for MSMEs. 3. Encourage private sector investment in joint/shared spaces, e.g., Young Designers Emporium concept in South Africa. MSME – FDI 1. Development of EIPA (lead), Short-term Linkages local MSME SEDCO, Strategy database and MCIT, BE, developed. their profiles FESBC and supply capabilities. 2. Facilitate engagement with medium and large companies, both foreign and domestic to identify potential supply opportunities. 3. Development of formal MSME supplier development 59 programme with accompanying incentives to encourage sourcing from domestic MSMEs. MSME MSME To be 1. TORs for MCIT (lead), Short-term coordination Dialogue developed. development of MoF, MoA, issues Platform an MSME MoH, MoHA, between operational. dialogue EIPA, BE, Ministries and platform that will FESBC, with private have sectorial Unions. sector forums and improved and general MSME dynamic. forums. 2. Convening of MSME forums in partnership with private sector as per the developed TORs. 3. Production of papers and policy notes from the forums to inform future policy reviews and ensure implementation of recommendatio ns. Access to Brochures, National 1. Update MCIT (lead), Continuous market and flyers, and Agriculture information on EIPA, ITD, trade Information the existing SEDCO, online information for System trade SWASA, start-ups and information (Nolwati), information ESEPARC MSMEs on available Trade portal. improved. MSME Information 2. Upload all financial Portal, information on MSME One- products. Eswatini available Stop-Shop Horticulture market developed and Webs Information opportunities on live (MSME System (EHIS) Entrepreneursh Entrepreneurs and other ip Portal. hip Portal). current data 3. Develop and portals. put in place mechanisms to collect and disseminate information on market opportunities and market data for local entrepreneurs and potential investors. Development Easily Current 1. Educational NAMBOARD, Continuous of Farmer accessible database of campaign to MoA, MCIT, database and registered raise MICT, RSTP. facilitated and comprehensi farmers. awareness on supported. ve database importance of of farmers in being part of the 60 Eswatini farmer from informal database. to medium. 2. Farmer identification and registration programme implemented. 3. Farmer database used for farmer engagement, support, and scheduling. Adoption of MSME Current 1. Conduct a study SWASA, Medium- standards support number of on how to ease MCIT, MoF, term amongst MSMEs with and prioritize MoA, RQID, programmes MSMEs international standards SEDCO, EIPA, facilitated. with compliance adoption by BE, FESBC Standards e.g., ISO9001, entrepreneurs and FSC22000. in priority compliance sectors. issues in 2. Develop an MSME support place for key program for value chains. standards adoption by MSMEs in priority value chains. 3. M&E Report on status of MSME standards adoption. MSME MSME To be 1. Develop MSME MCIT (lead), Competitivene Cluster developed. cluster strategy EIPA, SEDCO, ss and Strategy covering all 4 RSTP, MoA, cooperation developed, regions. ESWADE increased. and existing 2. Validate and growth oversee clusters implementation supported. of MSME cluster strategy. 3. Organize entrepreneurshi p forums in each region to increase awareness on business opportunities for MSMEs. Information Digital tools Eswatini Trade 1. Development of CFI (lead), Continuous asymmetry and solutions Information eCommerce CBE, MCIT, between FIs availed to Portal, platform for MoA, RSTP, and MSMEs improve MSMEs. E.g., UNDP, reduced. KYC, access UNDP Agri- ESCOMM. to FinTech information, Accelerator. markets, and 2. Study on finance revitalisation of developed. Eswatini Trade Hub to promote MSME products. Pillar 6: Entrepreneurship Culture 61 Culture of MSME One Entrepreneur SME Unit 1. Conduct an MCIT, Short-term entrepreneur Stop Shop ship portal webpage, assessment on SEDCO, EIPA, ship Portal EIPA and existing portals. SWASA, ITD, operational amongst developed. SEDCO 2. Develop TORs RSTP, MoA. youth, website. for women, and establishment people living of with entrepreneurshi disabilities p portal. promoted. 3. Raise awareness amongst MSMEs on entrepreneurshi p portal. 4. Organize capacity building sessions for users of the portal. 5. Develop mechanism for collecting relevant and up- to-date information and regularly update the entrepreneurshi p portal. Entrepreneuria Number of No such 1. Organize MCIT, EIPA, Continuous l culture events on events have events with SEDCO, JA, exchanges been local, regional, Enactus, MOA, entrepreneur locally, undertaken and RSTP regionally, and ial culture yet. international internationally exchange MSMEs and promoted. organized. entrepreneurs to share their experiences with the Eswatini business community. 2. Regional Trade Fairs 3. Provide support for local MSMEs to participate in regional fairs, seminars, and entrepreneurshi p initiatives. Equal Support Existing youth, 1. Work with SEDCO, EIPA, Short-term opportunities programs for disabled and business- MCIT, and support women support- ESPPRA, youth, enhanced for entrepreneurs organizations to ESEPARC all women, and hip support design specific entrepreneurs. persons with programmes. programs for disabilities in women, youth place and entrepreneurs living with disabilities. 2. Conduct awareness 62 campaigns among women, youth and living with disabilities on entrepreneurshi p and existing support programs. 3. Conduct regular motivational talks with successful entrepreneurs to inspire new MSMEs. 4. Change perceptions on business failure to improve entrepreneurial culture and risk- taking appetite. 5. MSME Policy MSME RSTP STEM 1. Develop MSME MCIT (lead), Short-term Communicatio Communicati Expo Communication SEDCO, EIPA, n Strategy strategy. Eswatini TV, on Strategy Developed 2. Conduct EBIS, in place. national ESCCOM awareness campaign on MSME Policy targeting associations, social media, radio, community developers etc. 3. Organize awareness sessions to promote entrepreneurshi p and increase MSME awareness of the MSME Policy and the various tools and support available to MSMEs, including the MSME One Stop Shop – the Entrepreneursh ip Portal. Encourageme Promotion of No current 1. Review of RSTP (lead), Short-term nt of R&D and programmes school science MoE, MICT, Innovation and exist. fair project to MCIT, Innovation, creativity encourage 4IR ESEPARC, facilitated. including skills and Academia indigenous learnings. knowledge 2. Hosting of systems and national medicine. innovation 63 competitions Awareness and challenges. program to 3. Support development of promote innovative innovation in solutions and schools, community- universities, based and the interventions, workplace in that bridge divide between place. rural & urban entrepreneurs and relevant support. 4. Training on IP Registration and protection. 5. Digital and IT training for women MSMEs. Pillar 7: Infrastructure and Technology Improved Improvements Increase in Current 1. Study on priority SWASA (lead), Medium- entrepreneur in quality of number of number of value chains to MCIT, MoF, term access to local produce local assurance labs support MSME MoA, RSTP technologies resulting from products that and testing growth. and increased meet retail facilities in the 2. Development of innovations investment in standards country. quality required for quality and those assurance business assurance that are infrastructure growth and infrastructure export ready. and labs for productivity for target value target value and access chains. chains. to the green 3. Promotion of economy. private investment in quality assurance value chains. 4. Training of farmers and MSMEs on food safety and quality standards (FSSC 22000, ISO 9002). Increased 1. No. of new TBD. 1. Training and MTEA, UNDP, Medium- awareness green MSMEs, EEA, ESERA, term amongst products especially, RSTP, MCIT MSMEs on the and youth and opportunities services women on the in the green 2. No. of green economy, economy, MSMEs including green including accessing products and markets green green services; products and finance 2. Support to services. 3. No of MSMEs projects towards funded accessing new under a markets for green green products financing and services; strategy or 3. MSME training fund. on the benefits and impacts of 64 circular economy measures, particularly for climate and biodiversity. Improved post- Improved Current 1. Review the MoA, Short-term harvest post-harvest number and current post- NAMBOARD, handling and operational harvest MCIT, and storage storage status of cold handling and ESEPARC, infrastructure systems in storage and storage Municipalitie developed and place. post-harvest systems to utilised. storage identify gaps s, MHUD facilities in the and propose country. measures for improvements. 2. Provision of cold storage for MSMEs (traders). 3. Organize Private-Public Dialogue to address challenges and consider recommendatio ns, including improving utilisation of existing storage systems. 4. Facilitate implementation of recommendatio ns. Packages for MSME Current data 1. Review of ESCOMM Short-term fast, reliable, Specific tariff for current internet (lead), MICT, and affordable cheaper data business. tariff and EPTC, MTN, internet packages development of Eswatini packages for launched special tariff for Mobile, MCIT. MSMEs and rural informal developed. promoted. and micro enterprises. 2. Development of regional information hubs that provide data and free internet access to MSMEs. 3. Expansion of fibre network for cheaper and faster internet. 4. Increase digital literacy for MSMEs through training on usage of IT and computers. 65 Public & Number of Current 1. Review existing MoA, Continuous private sector new number of agricultural NAMBOARD, investment in protected technologies to ESWADE, agricultural improved farms in the respond better MCIT, RSTP agricultural technologies country. to climate technologies successfully change. promoted. introduced 2. Mobilise the and adopted private sector to in Eswatini. invest in improved % farmers agricultural adopting technologies climate and smart smart climate farming. agriculture. 3. Strengthen ‘experience exchange programs’ with more tech- savvy countries in agribusiness like Israel, India, Argentina, and Brazil among others. 4. Leverage digital platforms to support information, market, and financial access, especially for rural farmers, including virtual and online training and participation in relevant fairs. Digital literacy % of MSMEs To be 1. Promote local RSTP, CFI, Continuous improved and digitally determined. e-commerce MICT, MCIT local platforms, included and technology digital payment expertise connected. solutions and enhanced. value chain % of MSMEs management selling systems. through 2. Leverage RSTP digital in supporting platforms. development of customized digital tools, tech-tools, and equipment / machinery for local entrepreneurs. 3. Promote digital tools amongst entrepreneurs across the value chains. 66 Ministry of Commerce Industry and Trade Micro, Small and Medium Enterprises Unit Interministerial Building Mhlambanyatsi Road MBABANE, ESWATINI P.O. Box 451 Mbabane Tel: +268 2404 3201/6 Fax: +268 2404 4711