Times Of Swaziland: ABOUT 50% OK FOODS GOODS SOURCED LOCALLY

ABOUT 50% OK FOODS GOODS SOURCED LOCALLY
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Nhlanganiso Mkhonta on 15/11/2024 08:23:00


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.