LEVEL GROUND FOR SMES – FESBC

MBABANE – The Minister of Finance, Neal Rijkenberg, has to level the ground for small medium entreprises (SMEs).

This was a request by the Federation of Swazi Business Community (FESBC). It was presented to Cabinet ministers during their retreat at the Pigg’s Peak Hotel yesterday by the Deputy President of FESBC, Hezekiel Mabuza.

In his presentation, Mabuza said, they needed government to assist them in taking advantage of the export markets that were available to local SMEs in the countries with bilateral agreements with the country.
Mabuza further said the minister of Finance had to devise programmes that would capacitate the SME sector. He said this would assist in vitalising the economy.

Capacity

“The capacity building in different segments needs to be in various sectors like financial capacity for SMEs. Once they acquire the know-how in business operations, there will be minimal failure in the business ventures explored by this sector,” Mabuza said.

This, he said, would bring relief to the sector in that when they sought financial assistance with knowledge they would not under calculate what they needed for the survival of their establishments. Mabuza said the issue of financial illiteracy was vital in the SME sector.

Furthermore, he said local entrepreneurs appreciated the adjustment in Corporate tax as it would assist them in re-investing their gains. However, he said FESBC was expecting the national budget to bring about a tax threshold – which at the moment was benefitting those bringing foreign direct investment (FDI).
For example, he said, if an SME made E50 000 profits per month, it should be tax-free so that the entrepreneur could re-invest that gain and improve their well being and the economy.

“Currently, the benefit is higher for the FDI and local SMEs are financing the gap.” Mabuza said his organisation was seeking that government also devise policies that would assist SMEs access finance.

He said at the moment, some SMEs were being accessible to opportunities but were failing to explore them as there was minimal or no funding at all.
The organisation further brought it to the attention of the ministers that challenges that they met when doing business in the country included the high cost of financing.

International

This, they said, thwarted their quest to supply and produce better products that were competitive in international markets.
“Our request and prayer to government also is that we are provided with support when international organisations are providing incubation programmes. At times, the organisations seek that government only offer us transportation costs and they incur the rest of the expenditure. This exposure is essential for us as it exposes us to what other countries are doing.” Mabuza said the budget speech should address how government would improve their services and also make collaborations between it and entrepreneurs successful.

He said government officials needed to share information and business opportunities when they return from international trips. These issues, he said, would make conditions favourable for local businesspeople.

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