The 2023 Blended Micro, Small and Medium Enterprises (MSMEs) Survey for Eswatini was launched, shedding light on the growing financial access for small businesses, despite challenges in the banking sector. The launch event was attended by key figures, including the Minister of Finance, Hon. Neal Rijkenburg, and the UNDP Resident Representative, Mr. Henrik Franklin.
The survey reveals significant strides in financial inclusion for Eswatini’s MSMEs. 84% of MSMEs now have access to formal financial products in 2023, up from 76% in 2017. However, despite this growth, small businesses accessing formal banking services have dropped significantly, from 69% in 2017 to 52% in 2023. On the other hand, the use of non-bank formal services, such as Mobile Money, has risen from 66% in 2017 to 75% in 2023, indicating a shift in how MSMEs engage with financial services.
The survey also found an increase in MSMEs holding some form of operating license, with 43% of businesses licensed in 2023, up from 25% in 2017. Additionally, the number of micro-entrepreneurs surged from 78% to 96% over the same period. Despite these gains, a large portion—at least two-thirds of MSMEs—remain unregistered with the Registrar of Companies.
The report, conducted by the Centre for Financial Inclusion (CFI) in partnership with Finmark Trust, aimed to assess the landscape of MSME financial access, identify constraints to growth, and explore barriers to financial inclusion. It also provided valuable insights into both formal and informal financial products available to small businesses.
At the event, Minister Rijkenburg emphasized the need for continued collaboration to improve MSME financial inclusion, urging all stakeholders to act on the survey’s findings. He stated, “Together we can create a landscape where every entrepreneur, regardless of the size of their business, has the opportunity to financial services they need to succeed.”
UNDP’s Henrik Franklin also highlighted the survey’s dual focus on financial inclusion and the structure of informality in Eswatini. He commended the flexibility of the CFI and Finmark Trust in adapting the methodology for the survey. Franklin underscored UNDP’s commitment to MSME development, particularly through partnerships like the Eswatini National MSME Policy (2024-2029) and the Ingelo Local Certification Scheme, which aims to strengthen local MSMEs and enable them to access both domestic and international markets.
The survey’s findings, backed by technical and financial support from the SADC Secretariat, European Union, and UNDP, highlight both the progress and challenges faced by MSMEs in Eswatini, pointing to the continued need for policy reforms and enhanced support for the sector.
Related Topics:
Insignia Financial Narrows HY Loss Amid Takeover Battle
How to Pick an Investment That’s About to Take Off
Administrators Initiate Sale Process for Regional Express Holdings
