Suppliers unite as govt payment delays hurt businesses

MBABANE – Local businesses, particularly MSMEs supplying government and private-sector entities, have come together to form the Eswatini Suppliers Association, amid persistent challenges threatening the viability of local suppliers.

The association has been established as a representative body intended to advocate for the legitimate interests, commercial viability and rights of MSMEs involved in supplying both the public and private sectors in Eswatini.

The formation of the association comes against a backdrop of concerns among local suppliers over delayed payments, particularly from government, while businesses continue to face tax obligations and other operating costs that have to be settled within prescribed periods.

For suppliers, delays in receiving payment can create significant cash-flow pressures, particularly for smaller businesses that have limited financial reserves and rely heavily on regular payments to meet salaries, purchase stock, pay transport costs and settle tax liabilities.

The association is expected to provide a collective platform through which suppliers can raise concerns affecting their businesses and engage relevant stakeholders on measures that could improve the operating environment.

Among the issues expected to remain central to the association’s agenda is the relationship between payment periods and the tax obligations faced by businesses.

Suppliers are required to meet their statutory obligations despite outstanding invoices, meaning prolonged delays in payment can place additional pressure on businesses that have already delivered goods or services.

The association also seeks to promote the interests of MSMEs participating in government procurement and private-sector supply chains, while advocating for an environment that supports sustainable local businesses.

The establishment of the body could provide suppliers with a stronger collective voice when engaging government departments, public entities and private companies on procurement and payment-related matters.

For many smaller businesses, securing a government or corporate supply contract can provide an important source of revenue and contribute to business growth. However, the sustainability of such businesses depends not only on winning tenders or securing contracts, but also on receiving payment within reasonable periods.

The association’s formation therefore signals an effort by local suppliers to organise around common commercial challenges and seek solutions that can strengthen their ability to operate and grow.

The Eswatini Suppliers Association is expected to represent suppliers across different sectors, providing a platform for members to raise issues affecting their businesses and collectively pursue reforms that could improve the local procurement ecosystem.