Revised Final Final Smme National Policy 11-05-2018 1 1

2018
REVISED SMALL, MICRO, & MEDIUM

ENTERPRISE POLICY OF ESWATINI
SMMESREPOSITIONING & UP-SCALING SMMES FOR MEANINGFUL GROWTH AND

STABILITY
Contents
Foreword ..................................................................................................................................................... 4
PART A Error! Bookmark not defined.
CHAPTER 1: INTRODUCTION .................................................................................................................... 5
INTRODUCTION ........................................................................................................................................... 5
Alignment with National Policies ............................................................................................................... 6
Policy Strategic Pillars .................................................................................................................................. 6
Structure of the Document ........................................................................................................................ 7
CHAPTER 2: SMMENATIONAL POLICY FRAMEWORK .............................................................................. 8
BRIEF OVERVIEW OF ECONOMY OF ESWATINI .......................................................................................... 8
1.1. Definition of SMMESector ............................................................................................................. 9
1.2. Profile of the SMMESector........................................................................................................... 10
1.3. Challenges Facing the Sector ................................................................................................... 11
Chapter 3: POLICY FRAMEWORK ........................................................................................................ 13
3.1. Vision ............................................................................................................................................. 13
3.2. Mission Statement........................................................................................................................ 13
3.3. Policy Objectives ......................................................................................................................... 13
3.4. Main Policy Principles .................................................................................................................. 14
3.5. Policy Goals .................................................................................................................................. 14
Chapter 4: SMMENational Policy Provisions and Strategies ............................................................... 15
4.0. Policy Provisions ........................................................................................................................... 15
4.1. Increase Access to Financial Products and Services .............................................................. 15
Policy Issues ............................................................................................................................................ 15
Policy Statement.................................................................................................................................... 15
Policy Objectives ................................................................................................................................... 16
Policy Strategy ....................................................................................................................................... 16
4.2. Strengthen SMMEBusiness Support Institutions and Structures ............................................... 18
Policy Issues ............................................................................................................................................ 18
Policy Strategy ....................................................................................................................................... 20
4.3. Strengthen the Legislative and Regulatory Framework for the Development of SMMEs .. 22
Policy Issues ............................................................................................................................................ 22
Policy Strategy ....................................................................................................................................... 24
4.4. Promote and Develop a Culture of Entrepreneurship and Innovation ................................ 28
| REVISED SMME POLICY OF ESWATINI (Confidential) 1

Policy Issues ............................................................................................................................................ 28
Policy Strategy ....................................................................................................................................... 29
4.5. Strengthen the Domestic and International Competitiveness of SMMEs ............................. 31
Policy Issues ............................................................................................................................................ 31
Policy Strategy ....................................................................................................................................... 33
4.6. Positon and Support SMMEs Owned by Women, Youth and Disadvantaged Groups ...... 34
Policy Issues ............................................................................................................................................ 34
Policy Strategy ....................................................................................................................................... 36
4.7. Define, Nurture and Improve the Growth and Graduation of the Informal Sector ............ 37
Policy Issues ............................................................................................................................................ 37
Policy Strategy ....................................................................................................................................... 39
4.8. Improving Dialogue between Key Stakeholders ..................................................................... 40
Policy Issues ............................................................................................................................................ 40
Policy Strategy ....................................................................................................................................... 42
Chapter 5: SMMEMaster-Plan ................................................................................................................. 44
5. Monitoring and Evaluation ......................................................................................................... 44
6. Introduction .................................................................................................................................. 44
7. THE STRATEGY IMPLEMENTATION PROCESS ............................................................................... 44
7.1. The Implementation Plan ........................................................................................................... 45
Activities .................................................................................................................................................. 45
The Implementation Plan Formulation Process .................................................................................. 45
Monitoring of the SMMESector Performance .................................................................................... 45

LIST OF ACRONYMS
BDS – Business Development Support
Bill – Citizens Economic Empowerment Bill
DFIs – Development Funding Institutions
FSRA – Financial Services Regulatory Authority
FGDs – Focus Group Discussions
GDP – Gross Domestic Product
GOE – Government of Eswatini
IASB – International Accounting Standards Board
IDCA – International Development Centre for Africa
IFRS – International Financial Reporting
IP – Implementation Plan
MCIT – Ministry of Commerce, Industry and Trade
MFU – Micro Finance Unit
SMMEs – Micro, Small & Medium Enterprises
NDS – National Development Strategy
Policy – SMME National Policy
SMME – Small, Micro, Medium Enterprises

Foreword
The Government of Eswatini (GOE), through the Ministry of Commerce, Industry and Trade (MCIT) has
made a decision to update the existing SMME Nation Policy which was first issued in 2004 and revised
in 2009. This revised SMME National Policy (“Policy”) aims to create a modern, comprehensive,
targeted and coherent framework that will create a highly profitable and entrepreneurial sector,
characterized by innovative, competitive and sustainable businesses and supported by an enabling
institutional and regulatory environment.
From a strategic perspective, the Policy is an important move by the MCIT to align its operations to
achieving the vision articulated in the National Development Strategy (NDS) of Swaziland. The
proposed strategies outlined in Part B are largely consistent with those articulated in the Citizens
Economic Empowerment Bill (Bill) and the NDS.
The achievement of the Policy goals and objectives require a partnership among key stakeholders
within the public and private sectors, and associations and/or organizations representing SMMEs.

CHAPTER 1: INTRODUCTION
INTRODUCTION
1. Micro, Small, and Medium-sized Enterprises (SMMEs) are the principal driving force in
economic development mostly for developing economies. In an economy such as that of
Eswatini, one cannot overlook the role of the sector. They stimulate private ownership and
entrepreneurial skills, they are flexible and can adapt quickly to changing market dynamics
and supply situation, they generate employment, help diversify economic activity and make
a significant contribution to exports and trade. In Eswatini assistance to the SMMEs
development is an integral part of overall economic reform together with enterprise
development and sustainability, investment promotion and financial reform.
2. The Government of Eswatini (GOE), through the Ministry of Commerce, Industry and Trade
(MoCIT) and other related portfolio agencies, and the private sector, has over the years
attempted to address the development of the SMMEs through various development projects
and programs ranging from capacity building to setting up developmental funding
institutions providing financing. However, despite the significant role that SMMEs play in the
economic development of Eswatini and the official recognition of the importance of the
sector, the absence of a coherent and comprehensive policy framework for the sector has
resulted in an un-coordinated and ad hoc approach to providing support to SMMEs. This has
resulted in limited focus on critical areas such as broadening the entrepreneurship base of
the country, increasing productivity and fostering a culture of innovation among the SMMEs.
3. This revised SMME National Policy is intended to update the existing SMME National Policy, first
issued in 2004 and revised in 2009. The Policy aims to create a modern, comprehensive,
targeted and coherent framework that will create a highly competitive, profitable and
entrepreneurial sector, characterized by innovative, competitive and sustainable businesses
and supported by an enabling institutional and regulatory environment.
4. The achievement of the Policy goals and objectives will therefore necessitate a partnership
among key stakeholders within the public and private sectors, and associations and/or
organizations representing SMMEs.
5. The revised SMMEPolicy is based on a situational analysis of the SMME sector in Eswatini, which
was conducted during January 2015 and the subsequent assessment of the Informal Trade
which was conducted by the Coalition of Informal Entrepreneurs Association of Swaziland
(CIEAS) through the support of the Co-ordination Assembly of NGOs (CANGO) in October
2016. This analysis included a series of broad and in-depth consultations with all stakeholders

with an interest in the SMME sector (government, regulators, business community, civil society,
development partners and representatives of the SMME sector); a review of all major
government, private sector and development partner initiatives in the SMME sector; literature
review; and a review of the latest SMME policies in a number of developing and developed
countries whose policies could be relevant for Eswatini.
Alignment with National Policies
6. From a strategic perspective, the Policy is an important move by the MoCIT to align its
operations to achieving the vision articulated in the National Development Strategy (NDS) of
Swazilabd. The proposed strategies outlined in Part B are largely consistent with those
articulated in the Citizens Economic Empowerment Bill (Bill) and under the NDS, both of which
provide for the policy framework and sets out the strategic framework for improving the
business environment in Eswatini. The NDS framework is supported by a set of national
strategies that will ensure a well-functioning labour market; improved opportunities for SMMEs;
efficient bureaucracy; adequate financial inclusion; and supportive trade relations.
Policy Strategic Pillars
7. The strategies that will be implemented under the Policy fall within seven (7) main pillars,
namely:
i) Increase Access to Financial Products and Services;
ii) Strengthen SMME Business Support Institutions and Structures;
iii) Strengthen the Legislative and Regulatory Framework for the Development of
SMMEs;
iv) Promote and Develop a Culture of Entrepreneurship and Innovation;
v) Strengthen the Domestic and International Competitiveness of SMMEs;
vi) Define, recognise and protect the Informal Trade Sector;
vii) Develop and Improve the Position of and Support of SMMEs Owned by Women,
Youth and Disadvantage Group; and,
viii) Enhance Policy Implementation and Integration by improving dialogue between
Key Stakeholders.

Structure of the Document
8. This Document is divided into three parts. Part A is the SMMENational Policy Framework
(“Policy”), which provides an overview of Eswatini’s economy; definitions of key concepts;
profile and role of the SMMEs; and the Policy framework, which covers the vision, mission,
policy objectives, policy goals; and main policy principles, While Part B outlines the policy
provisions, strategies and the monitoring and evaluation element of the policy.
9. Finally, Part C provides the 5 years’ strategic action plan that builds upon the policy strategies.
This action plan is incorporated in an implementation framework template. The actions will
need to be assigned and agreed with officials in the SME Unit at MoCIT and in consultation
with other relevant government agencies that have the mandate to support SMME
development.

CHAPTER 2: SMME NATIONAL POLICY FRAMEWORK
BRIEF OVERVIEW OF ECONOMY OF ESWATINI
10. Eswatini is an open economy country with a trade to Gross Domestic Product (GDP) ratio of
about 120% and a population of about 1.2 million. Based on the World Bank Report (2013), it
has a Gross Domestic Product (GDP) per capita of about $3,500, and is classified as a lower
middle income country. Eswatini’s ranking in the 2014 Doing Business Index by the World Bank
was 123 out of 189 countries, while over the same period, the World Economic Forum’s Global
Competitiveness Report ranked Eswatini at 124 out of 148 countries. Also, despite the
importance of trade to Eswatini’s economy, the country is lowly ranked under the trade
barriers (84), trade tariffs (78) and burden of customs procedures (137) categories in the
Global Competitiveness Report 2013.
11. Although the business environment is slowly improving, a significant number of reforms are still
needed to make it conducive. South Africa accounts for about 85% of imports and about
60% of exports due to its close links with Eswatini - while the European Union (EU) is the second
largest export market for Eswatini. Although the country was able to use trade effectively to
generate growth in the past, exports performance has weakened in recent years.
12. According to the World Bank Report, Eswatini faces considerable vulnerabilities in its existing
export base because a significant portion of current exports is dependent on trade
preferences, including sugar (under the EU Sugar Regime which is scheduled to expire in the
near term) and apparel (under the African Growth and Opportunity Act (AGOA)) and the
World Bank Country Overview (2014).
13. An overview in the African Economic Outlook indicated that in spite of an expansionary fiscal
stance, economic growth of Eswatini decelerated to just over 2% in 2014 as private sector
investments remained low. This was mainly due:
i) To the uncertainty in Southern Africa Customs Union (SACU) revenue receipts

beyond 2015, which calls for accelerated fiscal reforms, which would lock-in the
benefits from the current high inflows; and
ii) To an unfavourable business environment constrains, to which the economy could

benefit from existing links into global value chains. (AfDB, OECD, UNDP, African
Economic Outlook, 2014).

14. Key challenges impacting negatively on Eswatini’s ability to benefit from global value chains
are the existing constraints to domestic production. A report in the African Economic Outlook
(2014) indicated that export-oriented businesses have been hamstrung by an unfavourable
investment environment, regulatory restrictions, government distortions and the high cost of
trade – while the service sector, which is one of the fastest growing sectors, especially
telecommunications, is still to fully emerge out of a legislative bind that has impacted
investments. Also, limited export market diversification has cast a shadow of uncertainty
regarding trade preferences in key products. Limited access to finance by local SMMEs in the
face of declining FDI affects the extent that the country can exploit existing links into global
value chains. (AfDB, OECD, UNDP, African Economic Outlook, 2014).
15. Eswatini’s membership to various regional and international trade arrangements is important
to promoting trade, a critical element of its development and the health of the economy,
given its small size. Eswatini has made some progress in implementing regional commitments.
It has, together with other Common Monetary Area (CMA) countries, fulfilled the conditions
for participation in the cross-border electronic payments system that began in July 2013. As
part of the SACU, Eswatini meets most of the convergence criteria for the Southern African
Development Community (SADC).
1.1. Definition of SMME Sector
16. There is no single global definition for SMMEs, mainly due to divergences in economic
structures and stages of development. Globally, most countries have developed their own
definitions in an effort to craft appropriate and effective policies and programs for SMMEs to
fit its context and economic circumstances. This is based on the number of employees
(salaried), value of assets and the turn-over.
17. This Policy classify the SMMEs as a continuum, from informal micro-enterprises all the way to
formal medium-sized enterprises. The distinctions within the continuum is not important, only
the ease with which enterprises can change within the scale is more critical – i.e. a micro-
enterprise deciding to formalise its operations and a medium-sized enterprise downscaling its
businesses operations. Table 1 below provides the classification.

Table 1: Defining SMMEs in Eswatini
Category Sub-category Employees Value of Assets Turn-over
Micro-Enterprise Informal 0 No Formal Registration
Micro-Enterprise Formal 0 to 10 Under E50,000 Up to E60,000
Small Enterprise Formal 11 to 20 Over E50,000 to E2 million Up to E3 million
Medium Enterprise Formal 21 to 60 Over E2 million to E5 million Up to E8 million
18. However, this should be considered a working definition, and could be reviewed and
revised regularly to better respond to the economic developments and changing
dynamics of the sector to develop and target specific policies for the SMMEs.
1.2. Profile of the SMME Sector
19. Employment Creation: It has been proven that the SMME sector is responsible for
providing employment, helping to create wealth, form the foundation for private sector
growth and expansion and most importantly, contribute to the social development.
Therefore, in order to address the development needs of the sector on a deep and
meaningful level, a comprehensive and enforceable legislation is required.
20. Partnerships: Deliberate and coordinated interventions are required between

government, private sector and all relevant key stakeholders in order to transform the
SMME sector into a job-creation structure and to increase its important contribution to
the economic development of the country, which will be to the benefit of all Swazis.
21. Recognition of the Sector: Official recognition of the importance of the sector in the
economic development of Eswatini, hence the need for a well-co-ordinated approach
to the development and growth of this sector to enable it to achieve the targeted results
of transforming the sector for the better.
22. Lack of Formalization: The provision of appropriate structures and incentives for business
formalization is key. This has to address the following issues:
▪ Stringent and costly regulatory compliance requirements
▪ Limited knowledge on relevant policies and legislation
▪ Inadequate business development, mentoring and coaching support
▪ Cumbersome and inconsistent licensing and registration services

▪ Lack of information on the quality assurance and standards of SMMEs
▪ Lack of proper linkages and co-ordination amongst government agencies

and other support structures
23. Segmentation of the Enterprises: Diversification of the enterprises to optimally exploit

available and potential opportunities to maximise economic return and contribution to
overall economic growth. Support for value-addition to take advantage of horizontal
and economic integration, as well as export focus.
1.3. Challenges Facing the Sector
24. The following are the most common challenges and constraints faced by SMMEs in
Eswatini:
25. Missing Middle: From the analysis, it was clear that there is a marked “missing middle” of
enterprises in between the very small informal and the very large SMMEs and this is mainly
due to the lack of well-managed and vibrant businesses, hence the need for proper
support to eventually upscale to larger enterprises. The previous efforts of the
government to address the above constraints for better development of the SMMEsector
have fallen short as they more often confine to the bottom segments (micro and small
businesses) of the sector. Many of the other businesses remain unprofitable, while the
foreign owned business dominates and operate the more profitable businesses.
26. Lack of access to finance – This is due to lack of awareness of available credit facilities,
limited bankable projects and lack of collateral. In addition, other contributing factors
include the lack of entrepreneurial spirit and financial & business management skills,
limited development and transfer of skills to employees and the use of the business funds
to meet personal expenses (no separation between personal and business needs). The
provision of value chain financing is necessary.
27. Lack of entrepreneurial culture - Lack of management and business development

abilities of the SMME owners to establish long-term vision and be pro-active is a
challenge. Limited appropriate, affordable and credible vocational training services
structure along the commercial values, mentoring and coaching support impede the
generation of innovative and sustainable entrepreneurship. Lack of partnership
incubation, graduate process and fair competition coupled with opportunist and/or
foreign companies flooding the environment for the SMME sector. Starting and running a
business just to survive rather than to expand and grow the business. Lack of
innovativeness, aggressiveness, competitiveness, risk taking, hence resulting to similar
and low value businesses.

28. Regulatory and licensing issues - Un-commensurate preferential treatment for foreign
direct investment relative to domestic investors. Ineffective licensing and registration
services that would facilitate the easier transition of the informal to formal businesses.
Lack of preferential procurement policies among government entities and parastatals.
Absence of quality assurance and standards of SMMEs. Lack of proper government
support structures.
29. Other challenges - Lack of access to available markets (local, regional and international)
that will provide scope for increased scale and investment for these businesses to be
competitive. Increased costs of doing business due to lack of affordable premises
coupled with finding premises reduce average cost of production.
30. The above challenges and constraints as well as the key role SMMEs play in the economy
of Eswatini necessitated the revision of the existing policy, policy framework and the
strategies to achieve the policy goals.

Chapter 3: POLICY FRAMEWORK
31. This Policy Framework consists of the Vision, Mission, Policy Objectives, Policy Goals and
main Policy Principles.
3.1. Vision
32. To have a vibrant entrepreneurial SMMEsector 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.
3.2. Mission Statement
33. To promote and stimulate a deep-seated entrepreneurial culture in the SMMEsector,

build capacity, improve opportunities and supportive trade relations for SMMEs, reduce
bureaucracy, provide adequate access to finance, business advisory services building
strategic partnerships, so as to achieve competitiveness of the sector. In achieving the
vision and mission, the government, private sector, non-governmental agencies
and other development partners will perform the following key roles:
▪ Facilitator – the government through the Ministry of Commerce, Industry &

Trade (MCIT) provides a conducive environment to create and conduct
SMME businesses
▪ Promoter – the partnership will be responsible for the SMME development;

and,
▪ Regulator – the government through MCIT develop and implement laws and
regulations relating to the support and development of SMMEs.
3.3. Policy Objectives
34. The needs of the SMME industry are broadly covered in the Bill under the key policy
objectives of facilitating and supporting the creation of an enabling environment for
SMMEs. Therefore, the Policy objectives are aimed at:
▪ Facilitate increased access to financial products and services for SMMEs;
▪ Create an enabling institutional and legislative environment to strengthen the

business development support for SMMEs;

▪ Support for the ease of doing business for the SMMEs through improved business
start-up and growth;
▪ Facilitate and foster a culture of entrepreneurship, innovation and increase ICT

usage in the SMME sector;
▪ Enact into law a legislative framework that will enable the promotion and co-
ordination of the SMME sector;
▪ Facilitate and foster a culture of entrepreneurship, innovation and increase ICT

usage in the SMME sector; and,
▪ Support and develop SMMEs owned by women, youth and disadvantaged

groups and the informal sector.
3.4. Main Policy Principles
35. The fundamental principles, which support this Policy, are that SMMEs are:
▪ The principal driving force of economic development;
▪ Stimulate private ownership and are entrepreneurial in all undertakings;
▪ Employment generating engine and catalyst for human and social economic
development;
▪ Key drivers of economic diversity and growth; and,
▪ Key enablers for social stability.
3.5. Policy Goals
36. The Policy goals and outcomes as articulated, aligned and consistent with the key
national policies and the National Development Strategy of Swaziland (NDS) and the
Poverty Reduction Strategy and Action Plan (PRSAP). The following are the policy goals:
▪ Foster economic growth and development;
▪ Increase employment opportunities;
▪ Alleviate poverty by creating access to sustainable livelihood; and
▪ Increase levels of ownership in the economy for Swazi and historically

underprivileged populations.

Chapter 4: Policy Provisions and Strategies
4.0. Policy Provisions
37. There are eight (8) policy elements that are covered and under each provision key policy
issues are discussed, policy objectives defined and strategies to achieve these objectives
outlined.
4.1. Increase Access to Financial Products and Services
P OLICY I SSUES
38. Access to finance at all levels of SMMEs remains a formidable obstacle to growth in this
sector. SMMEs and rural households remain unattractive as business propositions. This
stem from lack of documentation to support loan applications (e.g. cash flow
statements, credit & financial history, valuation reports, legal fees); difficulty in providing
evidence of a market for products in loan applications; low financial management skills
among entrepreneurs; and the agricultural nature of many SMMEs are perceived as risky.
Most of the SMMEs have difficulty to meet collateral requirements. High costs of credit
also discourage borrowing by SMMEs.
39. SMMEs need long-term finance and working capital, however most loans issued by credit
providers have short-term loan repayment terms. Banks are known for offering standard
terms and conditions, leaving little chance of refinancing if repayment problems arise,
which most often result in early foreclosures. There is a need for financial support for the
start-up capital to grow and sustain the existing businesses. Access to savings,
investment, credit and financing facilities to support business start-up and working capital
is essential. Limited SMME industry specific financial products and services at competitive
prices remains a big constraint.
P OLICY S TATEMENT
40. The Government will facilitate increased access to financial products and services for
SMMEs by establishing an enabling environment for both the public and private sector to
enhance financial outreach and depth for the sector.

P OLICY O BJECTIVES
41. To introduce alternative financing options that are less dependent on the provision of
traditional collateral, since most SMMEs do not have the capacity to raise collateral.
Facilitate an increase in the supply of financial products and services to SMMEs, as well
as preferential interest rates and charges for the businesses.
42. To support business surveys and appropriate platforms to provide relevant information on
key business ventures to enable financiers to make informed and timely decisions on loan
appraisal. Enhance capacity of the financial institutions staff on the operation and
performance of the SMME sector. The following are the specific objectives of the SMMEs
to enhance access to finance for the sector:
▪ Facilitate the development of bankable projects, as well as appropriate skills in

business and financial management to attract finance;
▪ Support the development of appropriate structures including access to effective

business development services and entrepreneur profiling that will enhance
access to required documentation to support business loan applications;
▪ Promote the development of industry value chain linkages to improve access to

required raw materials, markets and financing through clear demonstration of
market evidence for the products;
▪ Ensure the re-alignment, targeting and effective provision of SMMEgovernment

funding and other related development finance facilities to enable business start-
up and growth;
▪ Support appropriate financial literacy programs along the financial inclusion

agenda, including own-savings mobilization and the utilization of mobile financial
services, formal remittance payment systems, insurance to better manage risk
and, reducing the cost of credit & consumer protecting; and,
▪ Improve the awareness and demonstrate the profitability and contribution of the
sector to overall economic growth and development.
P OLICY S TRATEGY
43. In order to increase access to financial products and services for the SMMEs, this policy
articulates the below strategies.

i). Value Chain Approach
44. To stimulate credit outreach and depth for the SMMEs, support the development of
mechanisms to enhance the attractiveness of the sector for finance, particularly the
bank finance. Identify and promote investment on high-value enterprises with
opportunities for effective business linkages with the SMMEs to maximise business returns,
business skills transfer and overall impact to economic growth. Emphasize on the value
chain approach and elaborate information to create awareness on the opportunities
and enable informed decision-making.
ii). Alternative Viable Financing Options
45. Support and promote viable methodologies for the on-lending of funds to SMMEs,
particularly without the need for traditional collateral. Collaborate with the relevant
agencies to develop and implement the enabling policy environment such as the
establishment of the credit infrastructure, secured lending & movable property registry,
competitive SME Scoring and the national SMMEloan register to minimize the risk
perception on the sector and reduce the cost of lending.
46. Promote equity financing for the sector, particularly the participation in the Eswatini Stock
Exchange through the introduction of less stringent registration rules for SMMEs willing to
list on the Exchange. This should be coupled with relevant support for these businesses
to cost-effectively maintain accurate and quality financial statements on their
operations.
47. Encourage and incentivise angel investors that would partner with these businesses with
the intention to grow and nurture them. Collaborate with the Bankers Association of
Eswatini to explore the possibility of introducing innovative financing options. These
include “Factoring” where the accounts receivable of the SMME is used as collateral, or
“Floor Planning” where the inventory of the SMME is used as collateral until the sale is
made.
iii). Lending Targets for the SMME sector
48. Through moral persuasion and appropriate incentive measures promote the
establishment and operation of mechanisms to encourage financial institutions,
including banks, to increase lending to the businesses in the rural and peri-urban areas.
Provide the State of the SMME sector report, on an annual basis, indicating the
performance of the businesses, contribution to macro-economic indicators and the
credit outreach and depth compared to the specific target lending established.

iv). Accessible and Affordable Credit
49. Support the development of an effective, efficient and competitive local microfinance
sector to cater for the financial needs of the micro businesses and facilitate graduation
to the mainstream finance, as well as sustainable well-targeted government funding
facilities that will ensure complementarities and good inter-face with all the key players
in the financial system. Collaborate with the private sector to explore the feasibility of
establishing a public-private-partnership to provide Venture Capital for SMMEs and/or
establishing a SMME Development Fund. Encourage credit providers to introduce
innovative financial products and services such as Mobile Banking and E-money.
v). Guarantee Schemes
50. Provide financing for the business clusters using the Credit Guarantee Scheme, which
eliminates the need for individual collateral. Expand the scheme to include all credit
providers who provide credit and financing facilities to SMMEs. In addition, implement a
property evaluation system to increase the range of personal properties and land that
can be used as security for loans; expand guarantees for export oriented, innovating
businesses and entrepreneurs operating in the creative industries; and also adjust Credit
Guarantee Scheme and require less collateral in case of special loans for SMMEs.
vi). Financial Products, Services and Processes
51. Encourage the building societies and mortgage finance providers to provide loans to
SMMEs desirous of purchasing land or property for business use, at a concessionary rate.
Develop monitoring mechanisms that will ensure the entity operating at the specified
location is executing the activity that it is registered to undertake.
4.2. Strengthen SMME Business Support Institutions and Structures
P OLICY I SSUES
52. Rationalise and harmonize the contribution to SMME business support from the various key
agencies that are working in the sector. The intention is to enhance complementarity and
the capability to monitor and account for the contribution. This will entail clearly
articulating and mapping of the support being provided and the corresponding support
entities.
P OLICY S TATEMENT
53. The Government will create an enabling institutional and legislative environment to
strengthen the business development support for SMMEs through clearly articulating the

key objectives of the sector, the roles and responsibilities of the business support entities
and mechanisms to improve the effectiveness of service provision that would respond to
customer needs. Provide mechanisms that will support research and information
dissemination on the sector to guide the business support entities to appropriately target
and segment the entrepreneurs to cost-effectively address their needs.
P OLICY O BJECTIVES
54. The following are the specific objectives of key policy issues:
▪ To provide support to the SMME development through creating awareness and

advocacy on the contribution of the sector, as well as identifying the key priorities
for development.
▪ Promote effective linkages as well as harmonization and co-ordination amongst all

the business support entities with emphasis on clear and measurable outputs
contributing to sustainability;
▪ To define the key roles and responsibilities of all the business service providers,
employer associations and other key relevant agencies that promote the
development of the sector through providing guidelines on the key policy priority
areas, expected outputs and effective mechanisms for co-ordination and
monitoring;
▪ To support the development and adoption of appropriate tools and systems that
will enhance and harmonize an all-inclusive provision of appropriate, quality and
affordable business management & technical training, business mentoring &
coaching, financial & market advisory services, access to financing, business
consulting services provision of marketing, exposure and access to local and
regional trade markets as well as other relevant support services that will improve
the profitability and sustainability of the entrepreneurs within this sector;
▪ To encourage the development and implementation of appropriate mechanisms

for targeting, segmentation and systematic profiling of the entrepreneurs that will
improve the effectiveness of service provision and the linkages with markets and
finance; and,
▪ To facilitate the provision of institutional capacity building and strategic guidance

to the key stakeholders to improve the performance of the sector, as well as
encourage the formation of business indigenous clusters as a means of developing
the SMME Sector; and,
▪ To increase the competitiveness and market access of good and services

produced by SMMEs through the provision of standards, certification and

accreditation framework or structures through building-up an internationally
competitive labour force that will strengthen productivity performance. To increase
demand for traditional goods and services produced by SMMEs in order to increase
their market share in all the industries.
P OLICY S TRATEGY
55. This Policy has the following strategies to enhance business development support for
SMMEs.
i). S TRENGTHEN THE CAPACITY OF THE SME U NIT
56. Provide the resourcing of the SME Unit to increase the effectiveness of the Unit to manage
the implementation of the SMME National Policy and SMME Road Map, including the co-
ordination of all the SMME activities, harmonization of service provision, conduct research
and disseminate information on the performance of the sector;
ii). SMME S URVEYS
57. Collaborate with the Central Statistical Office (CSO) and other relevant agencies,
facilitate the conduct of relevant surveys that will provide pertinent data and information
to establish the performance of the various enterprises within the sector. Manage research
and disseminate information on pertinent issues such as market research, product
competitiveness, product development, market segmentation and export penetration to
better inform service delivery and access to finance. In order to determine the impact of
the support programs and services provided to SMMEs, a uniformed monitoring and
evaluation policy or procedures needs to be developed by government and should fall
under the SME Unit.
iii). T RAINING AND D EVELOPMENT P ROGRAMMES FOR SMME S
58. To increase access to appropriate training and development programmes, including

technical skills such as marketing, production and planning that will address specific issues
that impede the growth and sustainability of the entrepreneurs. Based on international
best practice, continuously review and harmonize the programmes to ensure that these
are effective and respond to the needs. Accelerate the wider incorporation of
technical/vocational training at the secondary and tertiary levels of the educational
system and promote the development of the career advancement programme to
facilitate application of technical learning.

iv). A PPROPRIATE B USINESS M ENTORING & C OACHING P ROGRAMMES
59. Develop and implement plan for a structured mentorship programme through private-
public-partnerships. This programme should encourage entrepreneurs, senior executives
and business professionals with proven track record, in particular volunteers as mentors.
Recognize business mentors for their contributions through annual awards ceremonies.
Provide resources to facilitate networking opportunities and organize educational
activities to enhance the mentorship experience through seminars, workshops, visits, etc.
Facilitate and promote online business counselling. Establish Quality-Based Competitions
in the SMME sector, the reward for which will be mentorship from successful businesses.
Conduct technical workshops to showcase new and emerging method of business
operations.
v). C APACITY OF THE B USINESS S UPPORT E NTITIES AND S TRUCTURES
60. Strengthen agencies that play a key role in the identification, facilitation and development
of products with a high export potential as well as those in the areas of standards-setting,
package design and marketing. Develop and strengthen the capacity of local
intermediaries (e.g. business support organizations to provide services to SMMEs in the
implementation and maintenance of regional and international standards.
vi). P RIVATE S ECTOR P ARTICIPATION
61. Implement a structured and sustainable programme to provide training to SMMEs through
public-private-partnerships in key areas such as business planning, cash flow projections,
management, book-keeping, inventory management, protection of intellectual property,
market penetration, marketing and communications, etc. with greater “hand-holding”
given to businesses that are at the infancy stage. Establish more business incubators (I-
hubs) for creative entrepreneurs. The incubation program shall be more biased towards
benefiting indigenous informal traders, youth and other target entrepreneurs that have a
potential to significantly contribute to improved livelihoods and economic development.
vii). U SE OF ICT AND I NNOVATIVE S OLUTIONS
62. Facilitate the use of ICT as an avenue for SMME operators to access information necessary
to facilitate “self-paced” empowerment and knowledge and encourage the use online
social networks such as Facebook and Twitter, to promote their products. Develop and
implement communication mechanisms to increase the awareness of SMMEs about the
benefits of standards and certification (product and management systems). In addition,
to providing a platform to encourage SMMEs to seek certification (product and
management system) for their goods and services.
4.3. Strengthen the Legislative and Regulatory Framework for the
Development of SMMEs
63. Enact into law a legislative framework that will enable the promotion of the SMMEsector
through the development of an enabling policy environment, determination &
enforcement of performance targets, co-ordination, reporting processes & procedures
and access to appropriate business support services, markets and finance, as well as the
provision of the requisite resources to manage the sector.
P OLICY I SSUES
64. The following are the specific key policy issues:
▪ There seems to be a high number of informal SMMEs, which are operating without
formal registration. The lack of proper registration and data on these businesses
impede the ability to appropriately plan and provide requisite resources to meet their
needs, as well as measure the contribution of the performance;
▪ The non-formal SMMEs prevent genuine competition and promote the culture of non-
compliance within the sector. This contributes to the lack of information on these
businesses which might impact negatively when applying for formal credit.
▪ The lack of clearly defined, specific and comprehensive targets to monitor the
performance of the sector makes it difficult to determine and measure the
contribution and performance of the sector. This limits the capacity to establish
appropriate plans to support the development of the sector;
▪ Various government ministries (often using well-meaning development-partner

funding), NGOE and the private sector have commissioned many studies, reports,
strategy documents and business advisory services to improve SMME support and
development. There appears to be a distinct lack of co-ordination between these
efforts, poor integration and haphazard implementation. There is fragmented policy
coordination within government as well as between government, the private sector
and development partners;
▪ The lack of standardization and harmonization of the provision of business

management training and business advisory services has led to the duplication of
efforts, provision of inappropriate services and cover similar issues. The validation,
documentation and dissemination of the information is also a challenge.
▪ To create and enable a structure that will provide meaningful impact towards the
development of the sector through providing effective strategic leadership, co-
ordination and the harmonization of all the SMME activities, as well as the monitoring

of the performance of the sector. This will avoid duplication amongst the key players
in the sector and facilitate complementarity of efforts;
P OLICY S TATEMENT
65. Support for the ease of doing business for the SMMEs through improved business start-up
and growth. Development of the SMME SMME Road Map to guide the promotion of the
sector and review of the plan every 5 years. Creation of an SMME Council that would
provide oversight and monitoring on the contribution of the sector to overall macro-
economic indicators. Implementation of clear criteria for the accreditation of BDS
providers and an accrediting body designated through the relevant structures. Support
for the integration and effective participation of the SMME sector in domestic, regional
and international economic blocks to enhance markets and finance.
P OLICY O BJECTIVES
66. The following are the policy objectives:
▪ Ensure alignment and harmonization with all relevant policy and legislative
framework that would promote the development of the SMME sector. These include
the National Budget, Smart Partnership, Investor Roadmap for ease of doing
business, Poverty Reduction Strategy, Economic Recovery Strategy, as well as well
as effective linkages with the donor support.
▪ Improve the capacity of the SME Unit to implement the business-friendly policy
outlined in the Bill and included in the strategy
▪ MoCIT, SME Unit and other relevant agencies to initiate and strengthen existing
efforts to transform the operation and the contribution of the SMME sector to
economic growth and development.
▪ Develop and implement measures to improve access to information related to the

laws, policies and regulations governing SMME business activities as well as improve
its reporting mechanisms to be more effective.
▪ Advocate for the creation of a conducive, simpler, transparent and fair tax system
to encourage the contribution of the SMME sector.
▪ Encourage the government ministries and agencies responsibility for Information to

mount a major and sustained public education/social marketing programme to
change the attitudes of the Swazis towards the payment of taxes, creating
awareness of the benefits to the country when the tax base is broadened and of
how the government can support the SMME sector if revenue inflows increase.

▪ Stimulate stakeholder commitment and participation through the development and
implementation of an elaborate SMME Road Map that will provide a roadmap on
the development of the sector. Facilitate the development of the required data on
the sector in collaboration with the relevant agencies.
▪ The SME Unit to provide mechanisms and resources for the regular monitoring of the
performance of the Policy and provide bi-monthly reports to the National SMME Co-
ordination Council.
P OLICY S TRATEGY
67. Establish a legislation, SMME Act, to improve inter-ministerial, private sector and SMME
development agencies support and co-ordination of the SMME Policy and Strategy:
i). B USINESS R EGISTRATION OF THE SMME S
68. Improve the efficiency, cost-effectiveness and harmonization of the legal, regulatory and
administrative environment for businesses, as well as appropriate incentive packages.
Promote greater simplicity, cost effectiveness and efficiency in business licensing and
registration and tax compliance procedures through greater use of Information and
Communications Technologies (ICTs). Introduce “one-stop-shop‟ to facilitate business
registration and application to reduce time and cost for setting up new businesses.
ii). E STABLISH AN SMME N ATIONAL C OUNCIL
69. The Council chaired by the Prime Minister, will meet semi-annually to provide an oversight
and mechanism to co-ordinate and report on the performance of the SMME sector based
on set targets in the SMMESMME Road Map. The SME Unit shall prepare comprehensive
report articulating the progress achieved by the SMME sector based on the SMME Road
Map.
iii). D EVELOPMENT AND I MPLEMENTATION OF THE SMMESMME R OAD M AP
70. Develop and implement a 5-year SMME SMME Road Map that would provide
comprehensive and clear target performance indicators to monitor the progress achieved
by the sector. The purpose of the SMME Road Map is to indicate targets on the key areas
of the sector including the segmentation to key enterprise clusters. The SMME Surveys will
determine the baseline and periodic progress achieved on the set indicators. Prepare and
submit semi-annual reports to the SMME Council detailing progress achieved on the
targets including the contribution of the sector to key macro-economic indicators such as

the proportion of the SMMEs to the entire business sector and the percentage contribution
to GDP, employment and exports.
iv). A CCREDITATION OF B USINESS S UPPORT E NTITIES
71. Develop clear criteria for the accreditation of BDS providers and an accrediting body
designated by government. This should also aim at improving the operations of the BDS
providers in order to be uniformed and accountable. This will entail defining what the
accreditation means and understanding who should be accredited, how and by whom.
v). P REPARED E NTREPRENEURS
72. Promote greater synergies and best practices amongst SMMEs to enhance productivity
and competitiveness. Support backward and forward business integration to improve the
economies of size for these businesses. To mitigate risk for the financial sector, develop and
implement mechanisms for the segmentation and rating of the entrepreneurs to provide
appropriate information for credit appraisal, as well as to monitor the performance of the
sector. This will entail the development and support for tools and systems that will support
the systematic collection and collation of data in collaboration with the key public and
non-public sector agencies that work with SMME sector.
vi). I NCENTIVE P ACKAGES
73. Without perpetuating the dependence syndrome, promote the design or implementation
of market-related supportive incentive packages for competitive and disadvantaged
businesses within the SMME sector with a view to enable the transition towards access to
mainstream services, (such as SME Parks, markets, finance, government & parastatal
procurement and tax relief), and achieve sustainability. Develop, document and replicate
appropriate incentives models and mobilize support for resource allocation.
vii). C OMPETITIVE SMMES ECTOR
74. To increase the SMMEs competitiveness and participation in government procurement of

tenders (Proposal to revise Procurement Act of Eswatini). Consolidate and establish a
sound private sector legislative and regulatory framework for SMMEs including improved
access to information on laws and regulations.
75. Establish a special team dedicated to reducing bureaucracy and increasing efficiency
among public entities that directly interface with businesses and institute a rigid monitoring
and evaluation system to measure progress in reducing the bureaucracy and cost of
doing business. Improving the ability of SMMEs to take full advantage of a favourable and

enabling internal and external environment by strengthening Eswatini’s bilateral, regional
and international economic and trade relations, while simultaneously promoting local and
foreign investment.
viii). C ITIZEN ’ S E CONOMIC E MPOWERMENT
76. Government and parastatals set aside a minimum of twenty percent (20%) of their
procurement budgets for eligible, competent and credible SMMEs. The “Set Aside” will be
mandatory and procuring entities will be required to review and report on the volume and
value of contracts issued, with justification when the minimum “Set-Aside” is not achieved.
The maximum values for any single contract awarded under the Set-Aside programme
must be defined. However, in order to widen access to government procurement
opportunities in general, a SMME that is awarded a contract based on the above criteria
will not be eligible for another Set-Aside contract until the job is completed. A procurement
framework must be developed that outlines key requirements to be complied with by the
procuring entities. This framework must at minimum include:
• Use of local competent and credible SMMEs and resources for large contracts
that foreign companies tender for (inclusion of SMMEs at a certain
percentage);
• Attractive payment terms for SMMEs for contract; and
• Specific evaluation criteria provision for MSME’s proposal for tenders.
ix). T AXATION FOR SMMES
77. Policy consideration must provide for tax breaks to prescribed SMME segments. Explore the
feasibility of an annual flat tax rate for particular vulnerable self-employed individuals and
target business sectors. Lobby for businesses to truthfully self-declare and comply with the
taxation order.
x). TRADE SUPPORT FOR SMMES
78. The survival of local SMMEs depends in part on the trade policy being pursued by the
government both regionally and internationally. It is imperative that the MCIT, in
partnership with the Ministry of Foreign Affairs, and other key stakeholders, work
harmoniously to capitalize on these opportunities. Encourage and support the
participation of the SMMEs in relevant regional and global value chains by facilitating
greater linkages with regional and international production networks and the effective
sharing of the information.

4.4. Promote and Develop a Culture of Entrepreneurship and Innovation
P OLICY I SSUES
79. The following are the policy issues:

▪ The majority of the entrepreneurs are replicative entrepreneurs (i.e. start businesses
based on pre-existing markets, products, models, processes) and not innovative, and
this is mainly due to the lack of entrepreneurial culture, which hinders the
transformation if these enterprises into risk-taking, innovative enterprises.
▪ There is a lack of coordination and support of value chains in the SMME sector due
mainly to limited the understanding and appreciation of holistic thinking about market
systems and how they can be used to benefit the sector. A value chain inclusive
market development approach is demand-driven and focuses on specific market
sectors identified as having substantial potential for impact, growth and profitability,
while also benefiting the informal micro enterprises.
▪ Developing linkages between large and very small enterprises in Eswatini is paramount
to future growth and poverty alleviation. To provide better market access for small
producers and SMMEs, these linkages must be sustainable and beneficial to all. This
then requires an integrated and harmonised approach to holistically address market
constraints. This means addressing shortcomings in both the public and private
sectors.
P OLICY S TATEMENT
80. The government aims to facilitate and foster a culture of entrepreneurship,

innovation and increase ICT usage in the SMME sector through a value chain
inclusive market development framework.
P OLICY O BJECTIVES
81. The following are the objectives:
▪ To promote sound entrepreneurial practices through the provision of sustainable

capacity building and public education programmes. Support the development
and dissemination of reliable, timely and appropriate information to the SMMEs to
indicate potential business opportunities and the linkages;
▪ To assist viable SMMEs experiencing losses or insolvency to restructure and

turnaround in order to limit fear of failure and promote business sustainability;

▪ Foster business-to-business linkages and focus on supporting high potential value
chains in local market distribution and export promotion; and
▪ To create an enabling environment that will help to foster innovation among SMMEs
through greater supply of and demand for ICT products and services thereby
increasing productivity in the sector.
P OLICY S TRATEGY
82. The strategies to foster a culture of entrepreneurship and innovation in the SMME sector
are outlined below.
i). S TRENGTHEN THE ENTREPRENEURIAL CULTURE
83. Precondition for SMME development is to strengthen the entrepreneurial culture for all the
population strata. Introduce entrepreneurship in the curricula of all primary, secondary
and tertiary institutions. Provide and support a practical component where students are
encouraged to form businesses and gain useful skills from doing what they have been
taught. Partner with the various development organizations, key private sector entities and
academia, to promote entrepreneurship throughout the country, not just as a means of
survival, but highlighting its possibilities for generating wealth and transforming the
economy.
ii). S MALL B USINESS R ESCUE
84. Educate business owners and managers on how to choose and execute strategies for
sustainable turnaround. Support relevant structures that would provide advice to viable
small businesses that are experiencing problems or insolvency liaising with the judicial
and financial services to resuscitate and restructure the businesses.
iii). D OMESTIC AND E XPORT F OCUS
85. Institute and implement a national export strategy for Eswatini, with a particular focus on
improving the value addition and integration of SMMEs that have high potential for
engaging in agricultural export and import substitution crops.
iv). S TIMULATE CREATIVITY AND INNOVATION
86. Promote creativity and innovation among SMMEs in order to gain and sustain competitive
advantages locally and internationally. Introduce as part of SMME development training
a module introducing creativity and innovation to SMME owners, managers and potential
new entrepreneurs. Utilize entrepreneurship as a catalyst for transforming SMMEs into high-

growth enterprises. Partner with the SMME umbrella organizations to actively promote
awareness of the importance of technology in today’s competitive global marketplace.
Encourage business development service providers etc., to develop and use online
customer relationship management software to help stimulate productivity and
technological adaptation among SMMEs.
v). ICT-ENABLED SERVICES
87. Introduce new ICT-enabled services to the sector, including Mobile Money and other
innovative products and services that will boost the productivity of SMMEs as well as
enhance the delivery of business service providers in the sector. Facilitate the provision of
private equity financing and other types of financing options for high-tech SMMEs (those
involved in innovation and creation of ICT products and services) that need to acquire
ICTs for business development purposes. Collaborate with the relevant agencies to
encourage more SMMEs to take advantage of e-commerce opportunities and expand
ICT infrastructure by collaborating with providers of low cost broadband services that can
be accessible to all businesses.
vi). INCENTIVES FOR ICT BASED INNOVATIONS
88. Develop and promote a framework/structure that offer incentives to the private sector to
engage in SMME and inclusive business practices through innovation, to address market
failures in the SMME sector. This will help mitigate risk by backing innovation models that
combine potential commercial success with proven high social impacts. Instruments like
these would promote business-to-business linkages, enhance entrepreneurial skill and
challenge businesses to provide cost effective support and mentoring services.
vii). V ALUE CHAINS THROUGH SUPPORT AND BUSINESS LINKAGES
89. Establish a dedicated, well-resourced professional research office to collect and facilitate
research into the value chains operating within Eswatini and identify key gaps, challenges
and recommendations for support initiatives to expand these. Promote the use of an
objective approach for offering assistance to innovating SMMEs. This approach should
ensure that businesses that are innovative are given certain incentives to help them to
develop. In addition, an innovation award scheme to promote business-to-business
linkages, improve the competitiveness of local enterprises and transfer of skills and
technology to SMMEs.

viii). C O - OPERATION BETWEEN ACADEMIA AND BUSINESSES
90. Assist youth and students develop into independent citizens who know how to take
initiatives and cooperate with business support structures in developing business ideas.
Create a basis for choosing entrepreneurship as a career option by fostering a change in
attitudes and education skills of youth and students through general and vocational
education. Introduce a formal graduate enterprise framework and structure this to the
following:
▪ Encourage the establishment of incubators within colleges and universities;
▪ Increase the number of student internships in SMMEs;
▪ Promote entrepreneurship understanding among teachers, professors and

academia; and
▪ Expand mentorship schemes for coaching start-up business.
4.5. Strengthen the Domestic and International Competitiveness of SMMEs
P OLICY I SSUES
▪ There is considerable hidden entrepreneurial ability in Eswatini, but it will require

coaching to set-up and start businesses, which in turn will need stable training
institutions.
▪ SMMEs are unable to compete both in the domestic, regional and international
markets mainly due to the lack of a framework (legal and business support), which
creates an environment in which SMMEs and family own businesses can thrive where
entrepreneurship is rewarded and which assist SMMEs to benefit from the growth of
markets. For example, a typical supermarket in Eswatini is stocked with large number
of imported products, most of which could be produced locally.
▪ Technical colleges do not have sufficient experienced entrepreneurship trainers, so

graduates only acquire technical and vocational skills. Nor is entrepreneurship taught
at schools. In rural areas, not enough training in business, management and financial
literacy skills is supplied, with poor knowledge of available opportunities or the benefits
of such skills by many rural entrepreneurs. Few SMMEs know about export opportunities
and procedures, and are often intimidated by red tape and paperwork.
▪ There is limited usage of computers, email and internet, despite growing mobile phone
penetration. Although there is increasing availability of new production and
technologies in Eswatini, SMMEs still tend to engage in traditional manufacturing

practices. There is little attention paid to quality, branding, packaging and aggressive
marketing.
▪ Corporate governance practices are poor: there are often no advisory boards for the
small businesses, owners show little accountability, external audits are not conducted,
and few institutional means exist to enforce better governance.
▪ Quality standards of product and services are low, and customers have poor quality
consciousness, making products and services uncompetitive and undermining export
opportunities. The product certification by the Eswatini Standards Authority (SWASA) is
not currently operating at its optimum and businesses have to go to considerable
expense to have products certified. The SWASA is not educating SMMEs in matters of
quality, a vital element for export purposes, and currently lacks capacity to do so.
P OLICY S TATEMENT
92. The Government will facilitate the skills enhancement of SMMEs and the increase utilization
of ICT based platforms products and services to strengthen the domestic and international
competitiveness of MSME.
P OLICY O BJECTIVES
93. The following are the policy objectives:
▪ Create and implement an effective communication and information strategy, to

regularly provide the latest information (including national statistics, taxation and
licencing regulations, details of international trade agreements and market
information) to SMME stakeholders;
▪ Promote entrepreneurship by changing the mind-set in Eswatini that often sees

those operating their own businesses as failures;
▪ Review and improve SWASA infrastructure in order to develop exports of the

requisite international quality and health standards, enhance competitiveness
and benefit domestic consumers;
▪ Create quality consciousness by assisting those managing SMMEs to emphasise

standards and quality in their operations, including those required to satisfy local
consumers and export markets, and provide training in these areas; and
▪ Promote usage of ICT products, services and ICT-based business platforms among
SMMEs.

P OLICY S TRATEGY
i). A CCESS OF SMME S TO REGIONAL AND FOREIGN MARKETS
94. Eswatini needs to enhance its cross-border cooperation and regional business
partnerships by developing regional business clusters and eliminating trade barriers. This
will contribute to the increase competitiveness of the SMMEs. Special focus should be
given to ensuring the market access into the neighbouring countries by instituting
effective trade fairs at national and regional level.
95. Establish a web-based national database and knowledge portal to provide information
to SMMEs in Eswatini including national statistics, latest policy documents and proposals,
and export opportunities and market information. Develop a coherent and practical
policy for technology transfer to SMMEs to help build awareness of technologies that can
improve production efficiency, as well as educate them on how to acquire technologies
and commensurate training.
ii). IDENTIFY AND DEVELOP PRIORITY TARGET SECTORS FOR SMMESUPPORT
96. It is well known that new jobs are created by start-up businesses – however, the majority
jobs originate from the growth of existing SMMEs in sectors that have a better potential
of growth. It is therefore important to support both growing and start-up SMMEs in sectors
and sub-sectors with high potential of growth. Conduct a sector needs Assessment to
identify high to medium growth sectors and sub-sectors in order to support and develop
these by creating cluster networks both in the domestic and cross-border markets to
better promote these sector clusters.
iii). DEVELOP TECHNICAL, INNOVATIVE AND MANAGERIAL SKILLS OF

SMME S
97. Encourage among SMMEs the use of new technologies, fully utilizing electronic
communications and applications. Conduct a training needs assessment among SMMEs
and develop a customised training program to upgrade the managerial, technical and
innovative skills of SMME owners and managers with particular attention to be paid to
problems associated with managing family-owned businesses.
iv). RAISE THE PROFILE OF THE SMMES
98. Publicity efforts need to be made to build an enterprise culture in Eswatini and raise the
profile of entrepreneurship and self-development. Institute an annual entrepreneur
awards programme in various categories to raise the profile of SMMEs, celebrate success,
provide incentives for excellence and create role models.

v). INTERNATIONAL STANDARDS AND QUALITY MANAGEMENT SYSTEMS
99. Develop an import substitution plan to assist SMMEs to compete adequately in the
domestic market. This structure will provide support to SMMEs to enable them to
compete with imported products and services. Review the national standards, quality
assurance and accreditation system to become more acceptable for export purposes
in targeted markets but to better cater for SMMEs certification of products and services.
Review and strengthen the operations of the SWASA to considerably improve its
operations, management and outreach to SMMEs. Institute national training
programmes on quality standards improvement.
4.6. Position of and Support of SMMEs Owned by Women, Youth and

Disadvantaged Groups
P OLICY I SSUES
100. According to the 2010 Global Entrepreneurship Report: “Entrepreneurship in a society

should contain a variety of business phases and types, led by different types of
entrepreneurs, including women and underrepresented age groups.” The society must
be cognizant of the differences that exist between males and females. Each gender
responds to, and is affected differently by the same policies.
101. Many recent analyses reveal that women remain disadvantaged in virtually every
economic dimension, and government has not been equipped to deal with their specific
needs. They note that the government lacks sufficient staff trained in gender issues to
provide guidance on women’s issues in relation to SMME business management, and for
youth and disadvantage groups. The following are the key specific issues:
▪ Women mainly carry out small trading in Eswatini. However, the greater the level
of formality businesses show, women are not formalising their businesses, and
moving up the value chain.
▪ Some of the factors affecting women-owned SMMEs has been found to include
high cost to operate formal businesses; high rent-charging; lack of information on
business issues, access to government tenders, grievance procedures; poor
networking and business linkages among women; and low education levels.
▪ A significant number of the country’s youth are disconnected from proper

education and appropriate employment. They don’t receive adequate
appropriate support and interventions to harness their potential creativity in order
to establish enterprises that will contribute to national development.

▪ Indications are that although persons with disabilities are still employable and are
being employed, there remains a high level of unemployment within the group.
Self-employment provides persons from the disabled community with a freedom to
work at their own pace and to work in a familiar environment that accommodates
their special needs. Hence, this group can need support to establish meaningful
and sustainable businesses.
P OLICY S TATEMENT
102. The Government will create policies and frameworks that will enhance the support and
development of SMMEs owned by women, youth and disadvantaged groups and the
informal sector.
P OLICY O BJECTIVES
103. The following are the key policy objectives:
▪ Remove barriers to equal access in order to eliminate the various obstacles to

fostering gender equality in industry, trade and enterprise, and strive for gender
parity in administration and board representation.
▪ Facilitate the design and implementation of appropriate financial products and

services for women, youth and disadvantaged groups, as well as the informal
sector.
▪ MoCIT and SME Unit develop a comprehensive training program for gender issues
amongst SMMEs.
▪ Collect and monitor gender disaggregated information on participation in the

SMME sector in order to enable systematic review and evaluation of the impact of
policies, strategies and programmes on gender mainstreaming objectives.
▪ Promote awareness about gender sensitivities in business to ensure development

of gender differentiating policies and equality and equity of opportunities between
women-owned and men-owned businesses.
▪ To provide full inclusion, opportunities and support for persons with disabilities within
the business community.
▪ To encourage and support youth entrepreneurship as a strategy for youth

empowerment and employment.
▪ Provide an enabling environment for a structured informal trading with provision for
rapid graduation to mainstream formal SMME sector.

P OLICY S TRATEGY
104. The following are the specific policy strategies:
i). I MPROVE THE SOCIO ECONOMIC POSITION OF AND SUPPORT OF SMME S OWNED BY
WOMEN , YOUTH AND DISADVANTAGED GROUPS .
105. Create an enabling business environment for these SMMEs through the development
adequate collection of data, provision of specific tailor-made technical training, and
access to appropriate financial products and services;
ii). P ROMOTE AND FACILITATE NETWORKING EVENTS FOR THESE SMME S .
106. Promote the youth/women market as a viable financing option for SMMEs. Remove
barriers to equal access to eliminate the various obstacles to fostering gender equality in
industry, trade and enterprise, and strive for gender parity in administration and board
representation. Continuously identify factors that constrain the participation of women in
business, through partnership with the women advocacy organizations and other
women’s associations and develop appropriate strategies to address the constraints.
107. Implement a youth/women entrepreneurship strategy in an attempt to create an

enabling framework for the development of successful and sustainable youth/women-
led businesses. Under this strategy, efforts should be made to establish projects and
programmes on entrepreneurship that specifically target under-served youth/women, in
an effort to bring them into the mainstream of society through self-employment.
108. Partner with institutions that are involved in youth development to attract and engage
youth in basic literacy and numeracy skills development to help with assimilation of
information on entrepreneurship and create community clusters for youth-led enterprises
and strengthen youth advocacy organizations to help encourage interest in
entrepreneurship.
iii). D EVELOP APPROPRIATE FINANCIAL PRODUCTS
109. Design appropriate loan products for women and disadvantaged groups, including
defined informal trading, by encouraging credit providers to develop innovative
financial instruments that target and benefit them. Explore and find alternatives to
prevailing collateral requirements. Longer repayment periods should be considered.

iv). I MPROVE THE SOCIO-ECONOMIC POSITION OF ENTREPRENEURS OPERATING IN THE
DISADVANTAGED ( RURAL ) AREAS
110. Conduct an assessment to identify disadvantaged regions. Develop policy framework

and ensure that it is implemented, which is geared towards providing equal
development in all regions with specific attention to be paid to rural regions.
v). D EVELOP AND IMPLEMENT PROGRAMS THAT PROVIDE BUSINESS DEVELOPMENT SUPPORT
TO SMME S OWNED MY WOMEN , YOUTH , DISADVANTAGED GROUPS AND I NFORMAL
T RADERS
111. Implement structured internship programmes involving tertiary level students in order to
increase business development support in the area of marketing and communication.
Promote greater use of technology especially in schools. Require credit providers and
government departments to offer information relevant to SMMEs in other national
languages, as many female small traders are illiterate and struggle with information and
forms only available in English. Capacitate the SME Unit to be able to address gender
issues relating to SMMEs by providing customise trading.
112. Collect and monitor gender disaggregated information on participation in the SMME
sector. This disaggregated data is critical to enable systematic review and evaluation of
the impact of policies, strategies and programmes on gender mainstreaming objectives.
Build capacity of organizations/entities to design and deliver programmes that take the
unique challenges of women and physically disabled entrepreneurs into account.
113. Facilitate training with a reasonable proportion of training resources allocated to women
entrepreneurs and partner with women advocacy organizations in the development of
business-related policies/strategies for women. Ensure that a reasonable proportion of
participants in all relevant training programmes offered by the MoCIT, SME Unit and other
agencies comprise persons with disabilities. Collaborate with all key stakeholders such
as the community leaders and municipalities to identify emerging entrepreneurial
opportunities and support the emerging informal trading to gradually formalize their
entrepreneurial activities.
4.7. Define, Nurture and Improve the Growth and Graduation of the
Informal Sector
P OLICY I SSUES
114. Eswatini has high levels of unemployment and there is empirical evidence that survivalist
enterprises, (of which the informal sector accommodates the majority of) thrives in such
conditions. The formal sector cannot meet the demand for jobs. The SMME Census (2010)
established that 82% of the entrepreneurs were survivalists and 56% were especially

women. The majority of these have found refuge in the informal sector. These include
women, school leavers, returnees from migrant employment, and redundant, unskilled
and disadvantaged members of society. The majority of these are street traders such as
hawkers, fruits & vegetable vendors, barbers, dress makers, car mechanics, plumbers,
painters, electricians, bricklayers, etc. that operate individually and without much
business structure.
115. Informal sector activities are usually the “smallest, most fragile concerns” and these are
responsive to the needs of the poorest in society (Callaghan, 2014). According to the
review of the state of the informal sector in Eswatini1 (2016), there has been an increase
in rural-urban migration due to the opportunities available to improve one’s livelihood
and as such, the consequent overcrowding in the urban centres is as a result of internal
migration . As alluded to by informal traders interviewed, the population density in the
urban areas seems positive for the following reasons amongst others:
▪ It legitimizes the congregation of traders in the city centres;
▪ It gives traders access to social capital to facilitate the process of opportunity
recognition and implementation;
▪ Presents a unique opportunity to tap into the value chain of their enterprises
and trans-border connections;
▪ Offers competitiveness as traders provide services and products that were
unavailable in less connected areas; and,
▪ Presents an improvement in the quality of the business opportunities,
infrastructure and logistics.
116. As much as this sector plays a significant role in providing a source of livelihood for the
majority of the under-served segments of the population, it faces the following key issues:
▪ Activities tend to be replicative in nature, with minimal differentiation hence

diminishing marginal returns;
▪ Over time, entry barriers could also become entrenched as the concentration
of more traders’ increases in the population;
▪ Some of the product offering and environment may pose a threat to the
survival of informal trader and the intended clientele (e.g. quality of perishable
goods);
▪ Conflict between the intentions to improve the sustainable livelihoods and laid
down policies and procedures to govern business; and,
1 The Coalition of the Informal Economy Association of Eswatini (CIEAS) was supported by the Coordinating
Assembly of Non-Governmental Organizations (CANGO) in Eswatini to conduct a study establish the situation of
the informal sector in the country and to recommend strategies to address the issues in October 2016.
▪ Attractiveness to finance for these activities and linkages with bigger market
players.
P OLICY S TATEMENT
117. The Government of Eswatini will define, recognize, record and protect the operation of
the working poor and the contribution of the informal sector through facilitating
appropriate, affordable and accessible services to enhance the performance and
graduation of the informal trader into mainstream enterprise development in a
sustainable manner.
P OLICY O BJECTIVES
▪ Define, record and protect the operation of the informal trader in a systematic
and beneficial manner to stimulate growth and sustainability;
▪ Decentralize the support services and monitoring of the informal traders within
the regions and accomplished nodes to sustain their growth;
▪ Differentiate, segment and profile business activities to enhance standards,

quality assurance and beneficial linkages with the bigger market players; and,
▪ Provide a simple, affordable and accessible tiered registration process and

mechanisms to incentivize graduation to mainstream business.
P OLICY S TRATEGY
119. The following are the policy strategic actions:
i). D EFINITION OF THE I NFORMAL S ECTOR
120. The Policy draws from the National Informal Business Strategy of the South African
Department of Trade and Industry (2013) which differentiated the informal sector and the
informal economy. These are more often used interchangeably, yet they describe
different elements.
121. The informal sector are the legal activities of the working poor who were working very
hard, but who were not recognised, recorded, protected or regulated by the public
authorities. The informal economy constitutes all economic activities by workers and
economic units that are – in law or practice, not covered or insufficiently covered by
formal arrangements. This is different from the so called ‘underground’ economy.

ii). D ECENTRALISED S UPPORT S ERVICES
122. Identify, offer guidance and co-ordinate all the relevant institutions that support the
activities of the informal traders with a view to improve service delivery and the mentoring
& coaching services. Advocate and promote the “Adopt an Entrepreneur” program in
which the private sector will orient the informal trader on the wider spectrum of the
business including the essence of the business, product quality & standards, branding,
packaging, pricing managing finances.
123. Develop appropriate business development support tools and orient the service
providers on the usage of these to empower the informal traders. Conduct research on
the performance of the sector, customer preference and value chains to inform the
development and growth of the sector.
iii). D IFFERENTIATED B USINESS A CTIVITIES
124. Maintain a database and disseminate information on the informal traders, gender, types
of businesses, geographic characteristics, infrastructure (roads, telecommunication,
electrification, incubation, etc.) and access to markets and finance. Develop and
implement a credible, simple and appropriate non-mandatory competitive scoring
system that will assist segment and profile the traders to enhance access to finance.
Support the development of appropriate financial products and services for the sector.
iv). D ECENTRALIZED B USINESS R EGISTRATION
125. Develop and legislate a low-tier business registration process that will be simple
affordable and accessible to the informal traders. Build-upon and strengthen the role of
the municipalities, development centres and relevant decentralized Government
centres, such as the Revenue Offices to facilitate the registration of the informal traders.
Develop and support mechanisms that will provide incentives for the registration and
graduation of the informal traders into mainstream business. Advocate and lobby for
simple and preferential tax and other compliance requirements for the SMMEs.
4.8. Improving Dialogue between Key Stakeholders
P OLICY I SSUES
▪ SMMEs are faced with several social challenges that stem from a general
deterioration in the country’s social capital. That is, many challenges facing the
sector emanate from a break-down of the norms, values, obligations and trust
embedded in the country’s social structures, social interactions and overall social

institutional arrangements that are crucial to facilitating cooperation within and
among organizations and helping businesses to grow.
▪ There is a lack of trust and cooperation (environment-related social capital),

especially among SMMEs, which hinders their efforts to lobby matters affecting the
sector, and build in goodwill/good public relations with policymakers, regulators
and support structures or organizations.
▪ SMMEs lack awareness of the factors which impede (or can enhance) their
development and growth, including available services, programmes and
initiatives. In addition, though business development support is provided by private
and public BDS providers, a significant number of SMMEs are unaware of these
services.
▪ There is lack of data on SMMEs. There is need for continuous and comprehensive
data and studies to adequately inform policy direction, including project and
programme development.
▪ Some of the business practices of some SMMEs pose serious threats to the
environment. Business operations must consider fundamental issues such as
pollution, flooding (as a result of dumping in gullies, drains, etc.) and climate
change.
▪ Several assessment reports on Eswatini and some data confirmed by the analysis,
shows that deliberate efforts are needed to enhance communication,
cooperation and coordination among and between all stakeholders to enhance
the support and development of SMMEs.
P OLICY S TATEMENT
127. The Government will ensure proper implementation and integration of all national
policies, legislation and programs through improve dialogue between key stakeholders.
P OLICY O BJECTIVES
▪ Promote social capital to foster greater cohesiveness and promote the benefits of
information and knowledge sharing, unity and cooperation.
▪ To improve the capacity of the public sector in order to better support the SMME
sector, comprehensive data on SMMEs must be continuously collected.

▪ To provide on-going informational support to SMMEs, implement a public education
programme.
▪ There is a need for the government to prioritize the development and support of
SMMEs by deliberately directing all support efforts towards the development of this
sector.
▪ Improve awareness of and the role the SMMEs play in the economic development
of Eswatini by enhancing the advocacy process.
P OLICY S TRATEGY
129. The following are the policy strategic actions:
i). I MPROVE RESPONSIVENESS OF GOVERNMENT ORGANIZATIONS TOWARDS SMME S
130. Facilitate the creation of a partnership with all key public and private utility providing
institutions such as treasury, tax, customs, agriculture, telecommunications, electricity,
water, public health, environment and etc. to better support the SMME sector
development through quick service. Convert to electronic, on-line or other formats all
relevant key documents for business registration and operation for ease of access (e.g.
tax returns, customs declaration, import/export permits, business registration, trading
licensing, etc.).
131. Develop business incubators and effective graduation mechanism, to facilitate

innovation particularly in ICT and the use of indigenous material.
ii). R AISE AWARENESS OF THE ROLE OF SMME S IN E SWATINI ’ S ECONOMIC DEVELOPMENT
132. SME Unit needs better resourcing to ensure that legislative reforms take effect in order to
better support the SMME sector and to disseminate information to create awareness on
changes in policy and legislation related to SMMEs. Partner with donor agencies to help
fund the awareness campaigns. Sensitize SMMEs about the importance of gathering
data for policy formulation and decision-making and impose mandatory reporting
requirements on business activities. In addition, implement national strategy for
collecting and disseminating data and information on SMMEs. Ensure acceptance of the
definition for SMMEs among all stakeholders to help to standardize data collection and
reporting.

iii). I MPROVE DIALOGUE BETWEEN KEY STAKEHOLDERS THROUGH AN ADVOCACY PROCESS
133. Key stakeholders such as business development institutions and advocacy agencies
need to enhance their efforts in raising awareness about SMMEs by coordinating their
advocacy for SMME development policies. Strengthen the management,
communication, and presentation and advocacy skills of these organizations. Any
lobbying by these organizations and/or SMMEs to government institutions must be
recorded and tracked and feed back to the SME Unit to follow-up for action. Promote
conformity among SMMEs, to national environmental policies and/or legislation.
iv). F OSTER GREATER SOCIAL CAPITAL AMONG SMME S THROUGH COMPREHENSIVE

BUSINESS SUPPORT PROGRAMS
134. Collaborate with SMME umbrella organizations and trade associations to foster greater
social capital among SMMEs through programmes. Strengthening social cohesion, unity,
cooperation, trust and solidarity. Improve knowledge sharing and information symmetry.
Build and strengthen existing networks including improving experience sharing and best
practices. Encourage SMME umbrella organizations to take a united and harmonized
approach to seeking government’s intervention as and when deemed necessary.

Chapter 5: SMMEMaster-Plan
5. Monitoring and Evaluation
135. To effectively implement the various strategies mentioned in this policy, there needs to
be specific strategic action plan put in place and implemented by various stakeholders.
This strategic action plan is to be implemented within 5 years. The MCIT (SME Unit) is the
focal institution responsible for the coordination of the various strategic actions. All
stakeholders will be relied upon to furnish the Ministry with the relevant information. This
information will then be processed so as to compare the various benchmarks with actual
implementation of strategic actions. The processed information will be published in a
document which will be discussed at a forum of SMME stakeholders. As such this
monitoring and evaluation mechanism will be a major policy instrument.
136. The implementation strategic actions are detailed in terms of activities n Annexure A. The
activities will be benchmarked so as to form the basis for assessment of the
implementation of the SMME National Policy.
6. Introduction
137. The strategic actions are detailed in terms of activities with specific time frame as shown
in Annexure B. The activities will be regularly monitored and evaluated, and where
required adjusted, so as to form the basis for assessment of the implementation of the
SMME National Policy.
138. In Part A of this document, the Vision, Mission and Policy Goals are summarized. These
Policy Goals are set to achieve the Vision and the Mission over the next five years. Part
B outlines the Policy Provisions and with specific Objectives to be implemented to
achieve the set Policy Goals. Finally, Annexure A provide the Strategic Action Plan with,
measurable actions, timelines and key drivers of those action to achieve the Policy
Objectives and Goals.
7. THE STRATEGY IMPLEMENTATION PROCESS
139. The SMME National Policy and Strategy has been formulated in two phases. In Phase,
the draft Policy and Strategy from 2015-2019 has been completed after consultation with
key stakeholders to be approved by the government during later 2015. Once approved,
during Phase 2, a detailed Implementation Plan (“IP”) - attached as Annexure B needs
to be completed and approved by the government for implementation by MCIT and
SME Unit.

7.1. The Implementation Plan
140. The approved Strategic Action Plan is divided into Policy Goals, Policy Provisions and
Strategic Goals. For each Strategic Goal, there will be an actions that demonstrate how
the strategic goals will be achieved and a corresponding objectively verifiable indicator.
The government agencies with other business support organizations will under the
direction of SME Unit participate in the IP formulation plan. The SME Unit will review the IP
annually and update where necessary.
A CTIVITIES
141. The IP will group activities for the years from 2017 to 2022 under each strategic goal. Each
activity will be developed with corresponding timeline, deadline, responsible
government institution accepting responsibility for the implementation of the activity and
resources required.
T HE I MPLEMENTATION P LAN F ORMULATION P ROCESS
142. The formulation of the activities under the IP will have to be supervised by the SME Unit.
The MoCIT through the SME Unit will supervise the implementation of the Strategic Action
Plan. Each government institution accepting responsibility for the implementation for an
activity need to confirm such acceptance in writing.
M ONITORING OF THE SMME S ECTOR P ERFORMANCE
143. The SME Unit will conduct annual review of the SMME sector based on the IP and report
all outcomes in a different report and also as part of its annual report.
▪ Alleviate poverty by creating access to sustainable livelihood; and,
▪ Increase levels of ownership in the economy for Swazi and historically

underprivileged populations.

ANNEXURE A
STRATETGIC ACTION PLAN (FIVE YEARS)

SMMENATIONAL POLICY OF ESWATINI
VISION
Create a vibrant entrepreneurial SMME 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 families and other communities in productive economic structures.
MISSION
To promote and stimulate a deep-seated entrepreneurial culture in the SMME sector, build capacity, improve opportunities and supportive trade
relations for SMMEs, reduce bureaucracy, provide for adequate financial and other support by building strategic partnerships, so as to achieve
competitiveness of the sector.
POLICY GOALS
▪ Alleviate poverty by creating access to sustainable livelihood; and
▪ Increase levels of ownership in the economy for Swazi and historically under-privileged populations.

MEANS OF ASSUMPTION
OBJECTIVES INDICATORS RESPONSIBILITY PERIOD
VERIFICATION
Overall Objectives: Create a vibrant entrepreneurial SMME 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 families and other communities in productive economic structures.
Policy Goal: To promote and stimulate a deep-seated entrepreneurial culture in the SMME sector, build capacity, improve opportunities and supportive trade relations
for SMMEs, reduce bureaucracy, provide for adequate financial and other support by building strategic partnerships, so as to achieve competitiveness of the sector.
Expected Outcomes: Forster economic growth & development, increase employment opportunities, alleviate poverty by creating sustainable livelihoods, and increase
the level of ownership particularly for the under-privileged citizens.
1. Increase Access to Financial Products and Services
1.1. Develop, expand and Demand-side

1.1.1. Percentage of SMMEs required to provide collateral on any Framework is in place to collect
promote a range of MFU/CBS Semi-annual the data
existing loan survey
financial products for
SMMEs 1.1.2. Percentage of SMMEs with a MFU/CBS Framework is in place to collect
Demand-side
deposit account at a regulated Semi-annual the data
survey
financial institution
1.1.3. Percentage of SMEs with an MFU/CBS Framework is in place to collect
outstanding loan or line of credit Demand-side the data
Semi-annual
at a regulated financial survey
institution
1.1.4. SMME loan guarantees as a MFU/CBS Framework is in place to collect
Demand-side
percentage of SMME loan (in Semi-annual the data
survey
terms of value)
1.1.5. Percentage of enterprises MFU/CBS Supply-side Framework is in place to collect

Semi-annual the data
with access to digital financial survey
1.1.6. services Difference between MFU/CBS Framework is in place to collect

Demand-side
average SME loan rate and Semi-annual the data
survey
average corporate loan rate
1.1.7. Percentage of non-performing MFU/CBS/FSRA/C Framework is in place to collect
Supply-side
SMME loans: CD Semi-annual the data
survey
▪ To total loans

MEANS OF ASSUMPTION
VERIFICATION
▪ To SMME loans
1.1.8. Percentage of SMMEs with MFU/FSRA Supply-side Framework is in place to collect

Semi-annual
formal asset insurance products survey the data
1.1.9. Percentage of SMMEs with MFU/FSRA/ CCD Supply-side Framework is in place to collect
Semi-annual
informal loans survey the data
MFU/CBS/FSRA Supply-side Framework is in place to collect

1.1.10. Percentage of SMMEs with an
survey Semi-annual the data
outstanding loan or line of credit
1.1.11. Start-up SMMEs obtaining a loan MFU/SEDCO/ SME Framework is in place to collect
Supply-side
as a percentage of total number Unit Semi-annual the data
survey
of start-up SMEs
1.2. Implement 1.2.1. Toll-free line to provide Availability of the resources to

information on available MFU/SEDCO/ SME Toll Free
comprehensive training June 2018 sustain the service
program for SMMEs on financial products for SMMEs is Unit Number
financial products, established & operational
services and processes
1.2.2. Number of SMMEs that use the MFU/SEDCO/ SME Availability of the resources to
Call Register Monthly
line for referral per month Unit sustain the service
1.2.3. Number of educational materials MFU/SEDCO/ SME Availability of the resources to

on the features and availability of Unit Brochures/ sustain the service
Quarterly
financial products and services Leaflets
developed
1.2.4. Percentage of the level of MFU/SEDCO/ SME Availability of the resources to

Demand-side
satisfaction on the usage of the Unit Semi-annual sustain the service
survey
educational materials
1.3. Attract, direct and 1.3.1. Number of micro finance Supply-side Semi-annual Framework in place to collect
facilitate development institutions providing financial MFU/FSRA survey the data
and micro-finance funds services to the SMMEs
towards development of Supply-side
1.3.2. Number of entrepreneurs Semi-annual Framework in place to collect
SMMEs MFU/FSRA survey
receiving financial services and the data

MEANS OF ASSUMPTION
VERIFICATION
products from the micro finance

institutions
1.3.3. Percentage of SMMEs with at Supply-side Semi-annual Framework in place to collect

least one loan account from the MFU/FSRA survey the data
micro finance institutions
1.3.4. Size of loan portfolio to SMMEs MFU/FSRA Supply-side Framework in place to collect
Semi-annual
from the micro finance institutions survey the data
1.3.5. 1. Improve the MFU/FSRA Framework in place to collect

technical skills of 20 SMMEs Supply-side the data
Semi-annual
Minimum and maximum loan survey
size to SMMEs
1.3.6. SMME micro finance loan as a percentage of total SMMEloan

Supply-side
(in Framework in place to collect
MFU/FSRA Semi-annual
terms of value) survey the data
1.3.7. Difference between average Framework in place to collect

SMME micro finance loan rate Supply-side the data
and average corporate loan survey
rate
1.3.8. Start-up SMMEs obtaining a loan as a percentage of Supply-side

total Framework in place to collect
number of start-up SMMEs survey the data
1.3.9. Micro finance SMME loans Supply-side Framework in place to collect

granted/SMME loans requested survey the data
1.3.10. Percentage of non-performing Framework in place to collect

micro finance SMME loans: Supply-side the data
▪ To total loans survey
▪ To SMME loans
1.4. Foster an enabling 1.4.1. Percentage of SMME loans Framework in place to collect
MFU/FSRA Credit Register Semi-annual
environment that assessed with information from a the data

MEANS OF ASSUMPTION
VERIFICATION
integrates all support credit bureau or a credit rating

efforts for SMMEs agency
1.4.2. Percentage of SMMEs that MFU/SEDCO/SME Framework in place to collect

utilized generated business UNIT Demand side the data
Semi-annual
cluster information before survey
obtaining loans
2. Strengthen SMME Business Support Institutions and Structures
2.1. Strengthen the 2.1.1. A SME Unit Corporate Strategy Strategy Resource availability.
capacities and increase articulating the organizational Document
SME Unit
the effectiveness of SME structure is developed and
Unit in coordinating the operationalized
implementation of the 2.1.2. The organizational structure is SME Unit Strategy Resource availability.
adequately resourced Document
SMME National Policy
2.1.3. The SMME Co-ordination Council SME Unit Cabinet Paper Cabinet Approval and
and Strategy
is established and operational & Gazette Endorsement of the legislation.
2.1.4. The SMMESMME Road Map is SME Unit SMME Road Cabinet Approval and
implemented Map Endorsement of the legislation.
2.1.5. The performance of the SMME SME Unit Semi-annual Cabinet Approval and
sector is monitored and reports progress Endorsement of the legislation.
made reports
2.2. Develop the capacities 2.2.1. Framework and structure for the SME Unit Accreditation Cabinet Approval and
of the Business accreditation of the Business Framework Endorsement of the legislation.
Development Institutions Development Institutions is in and Structure
and Structures place
2.2.2. Number of Business SME Unit Register Quarterly Cabinet Approval and
Development Institutions that are Endorsement of the legislation.
accredited
2.2.3. Percentage of the entrepreneurs SME Unit/ Supply-side Quarterly Financial institutions keep the
successful with loans after SEDCO/MFU/ CBS survey data on all the loan
receiving Business Development applications.
Service
2.2.4. Percentage on the level of SME Unit Supply-side Semi-annual Records on attendance is
satisfaction from the Business survey maintained.
Development Institutions services

MEANS OF ASSUMPTION
VERIFICATION
2.2.5. Business Mentoring & Coaching SME Unit Framework March 2018 Cabinet Approval and
Framework is in place and Endorsement of the legislation.
adopted
2.3.2. Appropriate Business Mentoring SME Unit Mentoring/Co December 2017 Cabinet Approval and
& Coaching Tools are in place aching Tools Endorsement of the legislation.
and adopted by the service
providers
2.3.3. Percentage of the entrepreneurs SME Unit/ Supply-side Quarterly Records on attendance is
successful with loans after SEDCO/MFU/ CBS survey maintained.
receiving the mentoring &
coaching
2.3.4. Percentage of the entrepreneurs Supply-side Quarterly Value-chain approach is
linked to markets after receiving SME Unit/ SEDCO survey adopted and implemented.
the mentoring & coaching
3. Strengthen the Legislative and Regulatory Framework for the Development of SMMEs
3.1. Improve inter-ministerial SME Unit/ SMME Register Proper definition is in place e.g.
and SMME development 3.1.1. Developed criteria and profile the MoCIT/MoA/ farmer.
agencies support for the SMMEs and farmers. MTAD/SEDCO/SIP
implementation of the A/ NAMBOARD
SMME Policy and 3.1.2. Promoted and supported SME Unit /SEDCO/ Entrepreneur On-going Private sector participation
Strategy entrepreneur competitions. SIPA Awards
3.2. Significantly increase the 3.2.1. Number of formally registered
SME Unit/MCIT Register -
number of SMMEs to micro entrepreneurs
enter the formal sector 3.2.3. The SMME Co-ordination Council SME Unit Cabinet Paper Cabinet Approval and
is established and operational & Gazette Endorsement of the legislation.
3.3. 3.2.4. Online business registration MCIT Online Platform
established
3.4. Simplify existing 3.3.1. Number of decentralized business SME Unit/MCIT Registration Cabinet Approval and
legislation and the registration points e.g. Points Endorsement of the legislation.
regulatory framework Municipalities, Regional Towns,
and introduce new Development Centres, etc.
enabling policy and 3.3.2. Number of businesses that are SME Unit/MCIT Register Quarterly Cabinet Approval and
regulatory framework registered through the Endorsement of the legislation.
decentralized points
3.3.3. Categories of the business that are SME Unit/MCIT Register Quarterly Cabinet Approval and
registered through the Endorsement of the legislation.
decentralized points

MEANS OF ASSUMPTION
VERIFICATION
3.5. Improve the ease of 3.4.1. Number of developed and SME Unit Incentive Semi-annual Cabinet Approval and
doing business supported appropriate incentive Packages Endorsement of the legislation.
packages for the SMMEs
3.4.2. Percentage of SMMEs benefitting SME Unit/ SEDCO Supply-side Semi-annual Cabinet Approval and
from the incentive packages survey Endorsement of the legislation.
3.6. Enact the Citizens Cabinet Approval and
3.5.1. Bill is enacted as law. MCIT Legislation
Empowerment Bill (“Bill”) Endorsement of the legislation.
4. Promote and Develop a Culture of Entrepreneurship and Innovation
4.1. Strengthen the 4.1.1. Entrepreneurial curricula is
Cabinet Approval and
entrepreneurial culture institutionalized in schools and SME Unit/MoET Curricula
Endorsement of the legislation.
tertiary institutions
4.1.2. Number of schools and tertiary
institutions that provide SME Unit/MoET Register -
entrepreneurial education.
4.1.3. Percentage of school & out-of-
SME Unit/MoET/
school students that start and Register Annual -
JA/Kick-start
operate their own businesses
4.2. Stimulate creativity and 4.2.1. Percentage of micro businesses SME Unit / SEDCO
innovation utilizing any form of ICT for
Business survey Semi-annual -
business operation or information
processing
4.2.2. Number of businesses that SME Unit/ SEDCO
register through the online Register -
platform
4.3. Develop and promote 4.3.1. Number of commodities/ MFU/SEDCO/ MoA
value chains through enterprises with established /SIPA Databases -
support and business value-chain information
linkages 4.3.2. Value chain or gross margin SEDCO/ Information -
information platforms established NAMBoard/ SIPA Platforms
4.3.3. Number of SMMEs accessing the SEDCO/ SME Unit/ Register -
information platforms SIPA/ NAMBoard
4.3.4. Number of commodities/ SEDCO/ MoA/SIPA
enterprises with established gross /NAMBoard Databases -
margin information
4.3.5. Number of promotional materials MFU/ SEDCO/ SME Brochures/ -
developed on the value chains Unit Leaflets
and disseminated

MEANS OF ASSUMPTION
VERIFICATION
4.4. Promote and increase 4.4.1. Number of business policy SEDCO/SME Unit/ Attendance -
cooperation between dialogue fora conducted SIPA
academia and businesses 4.4.2. Number of businesses SEDCO/SME Unit/ Attendance -
participating in the policy SIPA
dialogue fora
5. Strengthen the Domestic and International Competitiveness of SMMEs

5.1. Facilitate the access of 5.1.1. Information & communication MCIT/SIPA/ SME Strategy Cabinet Approval.
SMMEs to regional and strategy, including domestic and Unit/ Embassies Document
foreign markets international trade established
1.1.2. Number of businesses MCIT/SIPA/ SME Strategy -
accessing the information on the Unit/ Embassies Document
regional and foreign markets
5.2. Identify and develop 5.2.1. Criteria for selecting priority Selection -
priority target sectors for target sectors for SMME support Criteria
SMME support 5.2.2. Number and types of the priority Database -
target sectors for SMME support MCIT/SIPA/ SME
identified Unit/ Embassies
5.2.3. Number and type of businesses Register -
that participate in the priority
target sectors
5.2.4. Contribution of the priority target CSO/ CBS/ SME Statistical -
sectors to GDP, employment and Unit Bulletin
exports
5.3. Develop technical, 5.3.1. Success rate of businesses that SIPA/MCIT/SEDCO Demand-side -
innovative and have benefited from technical & SME Unit survey
managerial skills of SMMEs and business management
training.
5.3.2. Number of micro businesses that SIPA/MCIT/SEDCO Demand-side Semi-annual -

maintain quality business & SME Unit survey
records.
5.3.3. Number and type of customized SIPA/MCIT/SEDCO Demand-side Semi-annual -
training modules for businesses & SME Unit survey
developed.
5.3.4. Number and type of businesses SIPA/MCIT/SEDCO Demand-side Semi-annual -
that access customized training & SME Unit survey

MEANS OF ASSUMPTION
VERIFICATION
modules for businesses

developed.
5.3.5. Level of satisfaction from the SIPA/MCIT/SEDCO Demand-side Semi-annual -
developed customized training. & SME-Unit survey
5.4. Introduce International 5.4.1. Number of systems that have MoCIT/ SWASWA Register December 2017 -
Standards and Quality been established and adopted. /SME Unit
Management Systems 5.4.2. Number and types of businesses MCIT/ SWASWA Register June 2018 -
into SMMEs that have been accredited for /SME Unit
the systems
6. Develop and Improve the Positon of and Support of SMMEs Owned by Women, Youth and Disadvantage Group
6.1. Facilitate the access of 6.1.1. Number of regional and foreign MoCIT/SIPA/SEDC Reports -
SMMEs to regional and market trade fairs, expos, etc. O/SME Unit
foreign markets that are held
6.1.2. Number and types of businesses MoCIT/SIPA/SEDC Reports -
that participated in the fairs and O/SME Unit
expos
6.1.3. Percentage increased sales from MoCIT/SIPA/SEDC Business survey -
the participating businesses O/SME Unit
6.2. Facilitate appropriate 6.2.1. Number and types of financial MFU/CBS/FSRA/C Register -
financial products for products that have been DD/SME Unit
women, youth and established.
disadvantaged groups 6.2.2. Number and types of businesses MFU/CBS/FSRA/C Business surveys -
that access the financial services DD/SME Unit
6.3. Support gender 6.3.1. SMME gender issues SME Unit Gender -
mainstreaming within the mainstreaming framework is Document
SMME sector developed
7. Define, recognize, protect and ensure the graduation of the informal traders
7.1. Define, record and 7.1.1. Definition of the informal trader MoCIT/ SME Unit SMME Policy & -
protect the operation of is in place Legislation
the informal traders 7.1.2. Database on the informal traders June 2018 -
and incentives to register are in
SME
place
Unit/Municipalities
7.1.3. Number of informal traders that Register Quarterly
/ Development
are operating
Centres
7.1.4. Key types of businesses operated Quarterly
by the informal traders

MEANS OF ASSUMPTION
VERIFICATION
7.1.5. Catalogue of incentives

SME
provided to support the growth
Unit/MoCIT/SEDC Reports Semi-annual
and graduation of the informal
O
traders
7.2. Decentralize and co- 7.2.1. The “Adopt an Entrepreneur” -
ordinate the provision of attachment program is Reports Quarterly
support services and established and operationalized
monitor impact on growth 7.2.2. Number of service providers and
types of services accessed by Reports Quarterly
the informal traders
SME
7.2.3. Catalogue of the of the business
Unit/SEDCO/Muni Reports Quarterly
support tools developed
cipalities/
7.2.4. Number of informal traders and -
Development
value of business accessing the Survey Quarterly
Centres
support services
7.2.5. Proximity of the services to the -
Reports Annual
informal traders
7.2.6. Satisfaction level from the
support services that are Survey Annual
provided
7.3. Differentiate, segment 7.3.1. Catalogue on the key business -
and profile the business activities undertaken by the SEDCO Reports Quarterly
activities conducted by sector
the informal sector 7.3.2. A scoring system on the -
SEDCO Reports
informal traders is in place
7.3.3. Number of informal traders
SEDCO Reports Quarterly
linked to markets
7.3.4. Number of informal linked to
finance and the value of SEDCO Reports Quarterly
business
7.4. Provide a simple, 7.4.1. Legislative and regulatory -
MoCIT/SME Unit Legislation
affordable and framework is in place
accessible registration 7.4.2. Memorandum of
process for the informal Understanding with the MoCIT/SME Unit Reports
traders Municipalities are in place
7.4.3. Catalogue on the incentive
MoCIT/SME
package provided for the Reports
Unit/SEDCO
sector

MEANS OF ASSUMPTION
VERIFICATION
7.4.4. Number of informal traders

graduating into mainstream SEDCO/Municipali
Survey Annual
registration and value of ties
business
8. Enhance Policy Implementation and Integration by Improving Dialogue between Key Stakeholders
8.1. Improve responsiveness of 8.1.1. E-based systems to enable MoCIT/ SME Unit Reports -
government & easier access to information and
organizations towards documents for businesses
SMMEs established
8.1.2. Number and types of key SME Unit Business survey -
documents available on-line
8.2. Raise awareness of the 7.2.1. Number of awareness campaigns SME Unit Reports -
role of SMMEs in Eswatini’s conducted
economic development 7.2.2. Reporting framework on key SME Unit Reports -
business activities to monitor the
sector is in place
7.2.3. Number of SMMEs that provide SME Unit Reports Quarterly -
reports on the key business
activities
7.4. Improve dialogue 7.4.1. Number of partnerships and SME Unit Reports Quarterly -
between key stakeholders networks to support the SMMEs
through an advocacy established
process 7.4.2. Number and types of SMMEs SME Unit Reports Quarterly -
that are benefiting from the
partnerships
7.5. Foster greater social 7.4.1. Cohesion amongst the SMME SME Unit Reports Quarterly -
capital among SMMEs umbrella bodies and knowledge
through comprehensive sharing
business support
programs

REFERENCES
Baseline Survey of Swaziland’s Business Development Support Community, IDCA, 2013
Citizens Economic Empowerment Bill
FinScope Swaziland, FinMark Trust, 2014
How do Economies Define Micro, Small and Medium Enterprises (SMMEs), Kushnir, Khrystyna
Making Access Possible, Qualitative Demand-Side Report, Ministry of Finance, Swaziland, 2013
Millennium Development Goals-Progress Report, UNDP, 2013
Policy Brief, Making Finance Work for Africa, 2012
Promoting SME’s for Development, OECD
SMME Census Report, Ministry of Commerce, Industry and Trade, 2010
Review of the state of the Informal Sector in Eswatini, 2017

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2018

REVISED SMALL, MICRO, & MEDIUM

SMMESREPOSITIONING & UP-SCALING SMMES FOR MEANINGFUL GROWTH AND

| REVISED SMME POLICY OF ESWATINI (Confidential) 1

| REVISED SMME POLICY OF ESWATINI (Confidential) 2

BDS – Business Development Support

Bill – Citizens Economic Empowerment Bill

DFIs – Development Funding Institutions

FSRA – Financial Services Regulatory Authority

FGDs – Focus Group Discussions

GDP – Gross Domestic Product

GOE – Government of Eswatini

IASB – International Accounting Standards Board

IDCA – International Development Centre for Africa

IFRS – International Financial Reporting

MCIT – Ministry of Commerce, Industry and Trade

MFU – Micro Finance Unit

SMMEs – Micro, Small & Medium Enterprises

NDS – National Development Strategy

Policy – SMME National Policy

SMME – Small, Micro, Medium Enterprises

| REVISED SMME POLICY OF ESWATINI (Confidential) 3

| REVISED SMME POLICY OF ESWATINI (Confidential) 4

| REVISED SMME POLICY OF ESWATINI (Confidential) 5

Alignment with National Policies

Policy Strategic Pillars

| REVISED SMME POLICY OF ESWATINI (Confidential) 6

| REVISED SMME POLICY OF ESWATINI (Confidential) 7

BRIEF OVERVIEW OF ECONOMY OF ESWATINI

i) To the uncertainty in Southern Africa Customs Union (SACU) revenue receipts

ii) To an unfavourable business environment constrains, to which the economy could

| REVISED SMME POLICY OF ESWATINI (Confidential) 8

1.1. Definition of SMME Sector

| REVISED SMME POLICY OF ESWATINI (Confidential) 9

Category Sub-category Employees Value of Assets Turn-over

Micro-Enterprise Informal 0 No Formal Registration

Micro-Enterprise Formal 0 to 10 Under E50,000 Up to E60,000

Small Enterprise Formal 11 to 20 Over E50,000 to E2 million Up to E3 million

Medium Enterprise Formal 21 to 60 Over E2 million to E5 million Up to E8 million

1.2. Profile of the SMME Sector

20. Partnerships: Deliberate and coordinated interventions are required between

▪ Stringent and costly regulatory compliance requirements

▪ Limited knowledge on relevant policies and legislation

▪ Inadequate business development, mentoring and coaching support

▪ Cumbersome and inconsistent licensing and registration services

| REVISED SMME POLICY OF ESWATINI (Confidential) 10

▪ Lack of proper linkages and co-ordination amongst government agencies

23. Segmentation of the Enterprises: Diversification of the enterprises to optimally exploit

1.3. Challenges Facing the Sector

27. Lack of entrepreneurial culture - Lack of management and business development

| REVISED SMME POLICY OF ESWATINI (Confidential) 11

| REVISED SMME POLICY OF ESWATINI (Confidential) 12

32. To have a vibrant entrepreneurial SMMEsector that contributes to the economic

3.2. Mission Statement

33. To promote and stimulate a deep-seated entrepreneurial culture in the SMMEsector,

▪ Facilitator – the government through the Ministry of Commerce, Industry &

▪ Promoter – the partnership will be responsible for the SMME development;

3.3. Policy Objectives