ABOUT 50% OK FOODS GOODS SOURCED LOCALLY

EZULWINI – Endless opportunities remain open for the local producers, as OK Foods says their doors are always open to MSMEs that can consistently supply quality consumer products.

Lincoln Motsa, the Managing Director (MD) of Linac Enterprises, trading as OK Foods Eswatini, has indicated that their retail stores source 40 to 50 per cent of their goods locally. Motsa stated that OK Foods is a proudly Swati-owned retail business, deeply committed to supporting local entrepreneurship and development. Motsa was speaking during the launch of the Ingelo Local Certification Scheme, a collaborative initiative between the United Nations Development Programme (UNDP), the Eswatini Standards Authority (SWASA), the Quality and Regulatory Infrastructure Department (QIRD), the SME Unit, and the Small Enterprises Development Company (SEDCO), all under the Ministry of Commerce, Industry and Trade.
The Ingelo Local Certification Scheme aims to provide a trusted certification process that assures retailers of product quality and facilitates access to mainstream markets.

Motsa highlighted that said over the years; they have actively engaged with numerous local micro, small and medium enterprises (MSMEs) and have observed the remarkable innovation among emaSwati entrepreneurs. “With the right guidance and support structures, these businesses have the potential to thrive. However, they face significant challenges,” said the MD. Motsa said one of the key challenges facing the local MSMEs is the lack of operational cash flow. He stated that in today’s business environment, cash payments are increasingly unpopular.

“Consequently, many young and innovative emaSwati entrepreneurs struggle with cash-flow issues, leading them to seek assistance from unscrupulous financial institutions like micro-lenders,” Motsa said. The MD said these entrepreneurs often find themselves unbankable, and a substantial portion of their profits is consumed by loan and interest repayments. He said this financial burden hinders their ability to sustain and grow their businesses.

Standards

Motsa added that another challenge faced by the local MSMEs, is the inability to adhere to quality and standards. He said as retailers, they adhere to the highest standards to ensure their customers receive the best quality products at competitive prices. He said in their efforts to support local MSMEs, they have noticed that many local producers and manufacturers face challenges related to quality, hygiene and product composition. He said while SWASA has been instrumental in addressing some of these issues, it currently lacks the capacity to cover all sectors.

He said this initiative will provide much-needed support. He said retailers require assurances that manufacturing processes maintain the highest hygiene standards, yet many MSMEs cannot afford appropriate business premises that undergo regular health inspections. Motsa appreciated the Ministry of Commerce, SWASA and UNDP for establishing the Ingelo Certification Scheme. He expressed his believe that this initiative will significantly contribute to the development of MSMEs in the country. Motsa said this initiative provides them, as retailers the assurance that the goods they sell to their customers meet the required standards, aiding MSMEs in developing and improving their product quality.

Opportunities

Motsa added that the Ingelo Certification Scheme will not only ensure that the products meet the required quality standards, but will also open doors for MSMEs to supply other chain stores across the country. He said this broader market access will enable these businesses to scale effectively, resulting in increased employment opportunities. He said as more people gain employment, the standard of living among citizens will improve, contributing positively to the country’s economic growth. He said this initiative represents a significant step forward in empowering citizen’s entrepreneurs and fostering sustainable development within the nation.

He further commended the UNDP for acknowledging and actively supporting the vital role that MSMEs serve as the foundation of a developing nation. He said by fostering innovation, creating employment opportunities, and driving local economic growth, MSMEs are instrumental in building a robust and resilient economy. “UNDP’s support in empowering these enterprises underscores its commitment to sustainable development and economic empowerment at the grassroots level,” he said.

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