MBABANE – Eswatini has moved to position itself at the centre of a new continental blended finance initiative aimed at unlocking affordable, collateral-free funding for micro, small and medium enterprises (MSMEs), women and youth. Government seeks to shift from aid dependence to trade-led growth.
Presenting the 2026 National Budget on Friday, Minister for Finance Neal Rijkenberg announced that Eswatini will join the Africa Strategic Investment Alliance (AfSIA), a continental financing mechanism established following a decision by the African Union Summit.
Rijkenberg said AfSIA would enable participating governments, working collectively with other African Union Member States, development finance institutions (DFIs) and private sector companies, to mobilise additional resources for small businesses by leveraging technology.
Government has set aside E10 million in the 2026 Budget to establish the AfSIA country programme in Eswatini.
“Working under a collective umbrella with other African Union Member States, DFIs and private sector companies, we will be able to attract additional funding for small businesses by leveraging technology,” Rijkenberg said.
To ensure effective coordination, government will establish an inter-ministerial committee to oversee the country programme and the establishment of a Regional Head Office for Southern Africa for AfSIA in the Kingdom of Eswatini.
According to the minister, Eswatini’s participation in AfSIA is expected to strengthen the country’s involvement in continental trade under the African Continental Free Trade Area (AfCFTA), attract investment flows from Southern Africa and expand digital and financial inclusion for marginalised groups, including persons with disabilities.
The programme is also expected to support youth employment, with the AfSIA country programme scheduled to be initiated during the second quarter of 2026.
Rijkenberg said the new financing model comes at a time when the international financial architecture is undergoing rapid change, marked by a decline in traditional aid flows.
“The international financial architecture is changing swiftly, with a rapid decline in aid, making the shift towards trade inevitable. Eswatini’s response needs to be equally swift and targeted in order to find a sustainable solution to the financing gap for small businesses, who represent the backbone of our economy,” he said.
The minister underscored the importance of MSMEs to Eswatini’s economy, citing recent studies which indicate that there are about 70 000 MSMEs in the country, employing over 90 000 emaSwati and contributing significantly to GDP.
He said 74 per cent of MSMEs are located in rural areas and are largely concentrated in the retail sector, while agriculture remains the most dominant sector in terms of employment.
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