NMC NOT LEAVING YOUTH BEHIND

MANZINI – The National Maize Corporation (NMC) says it is not leaving the youth behind, in its drive to increase maize production in Eswatini.
On Monday, NMC engaged the first group of young farmers to benefit from the recently relaunched Horticulture and Grains Fund, under the NMC, National Agricultural Marketing Board (NAMBoard) and EswatiniBank at an event held at S & B Restaurant in Matsapha. The group of young farmers was guided on the application process and the requirements for obtaining the funding.

Last week, the EswatiniBank, in collaboration with NMC and NAMBoard, relaunched the horticulture revolving fund, adding a E2 million credit guarantee.The added finance is meant to facilitate access to affordable finance for farmers producing fruits, vegetables and, now, maize and beans.This initiative is not just about providing loans; it is about empowering farmers to build sustainable businesses, improve productivity, and ultimately enhance their livelihoods.

Initiative

The National Maize Corporation (NMC)/NAMBoard credit guarantee initiative is designed to provide vital financial support to small, medium, and micro enterprises (SMMEs), recognising their essential role in driving economic growth and innovation. NMC Chief Executive Officer (CEO) Mavela Vilane, said NMC has set targets for farmers under its youth incubation programme to produce at least five tonnes per hectare of maize, in the upcoming farming season. He said this initiative aims to meet the national maize production target of over 300 metric tonnes, and also for making sufficient produce, which would be enough for storage in reserves and to feed the nation for three years, without the need for additional farming.

Vilane noted that following the relaunch of the revolving fund, worth E10 million, which was in partnership with EswatiniBank, they recognised the need to equip youth farmers on how they could benefit from the fund.Previously, the fund only supported horticulture crops, but it will now support maize and bean farmers. “With 50 youth farmers in this programme, we hope they can produce five tonnes per hectare. If you multiply five by 50, you can see the amount of produce we anticipate from this particular programme, if all of them produce maize,” he said.

Encouraged

He explained that their incubation programme encouraged youth to venture into maize and beans.He said after that they deal with how they could explore ways to bridge the financing gap.Vilane mentioned that, noting that the gap had been closed by the availability of the fund, they wanted their youth farmers to also benefit.“Now that the gap for finance has been addressed through the partnership with EswatiniBank and NAMBoard, we see it as an opportunity to teach the youth in our incubation programme how the fund can benefit them,” he said.

Speaking during the relaunch of the fund last week, EswatiniBank Agri-Business Manager Mazibuse Khumalo, said by empowering these businesses, they strengthen the backbone of the country’s economy, fostering resilience and sustainability in local communities.Khumalo explained that the credit guarantee, covering 20 per cent of each loan amount, reduces risk for EswatiniBank, while encouraging increased lending to SMMEs, ultimately supporting job creation and fostering entrepreneurship within the community.

Guarantee

He explained that the NMC/NAMBoard credit guarantee will leverage the Small Scale Enterprise Loan Guarantee Scheme (SSELGS) provided by the Central Bank of Eswatini, which covers 95 per cent for start-ups and 85 per cent for existing businesses.Khumalo said the benefits of the credit guarantee include enhancing food sovereignty in the Kingdom of Eswatini, by reducing our dependence on high imports and empowering local farmers to increase the production of maize, beans, and horticulture, ultimately ensuring self-sufficiency and greater security in food production.NAMBoard Chief Executive Officer (CEO) Bhekizwe Maziya said his organisation has always been committed to promoting a financially sustainable farming community. He said their vision is to see a thriving agricultural sector that significantly contributes to the economy of Eswatini.

Challenge

“However, we have observed that access to affordable finance remains a major challenge for our smallholder farmers. This challenge has often hindered their ability to expand and improve their farming operations,” he said.Maziya said on December 20, 2022, they took a giant step by signing the first Memorandum of Understanding (MoU) with EswatiniBank, to provide a loan guarantee for the horticulture farmers.He said this initiative enabled farmers to have access to a total of E10 million with the bank. He said, while, this initiative has seen some successes, they recognised that the scope needed to be broadened to include the grain crops.

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