Home Business Suppliers unite as govt payment delays hurt businesses
Business

Suppliers unite as govt payment delays hurt businesses

Share
(From R-L) Eswatini Suppliers Association Secretary General Mduduzi Simelane, Member Philani Tsela, Vice Chaiperson Johannes Manikela and Chairperson Boysin Mamba. (Pic: Nhlanganiso Mkhonta)
(From R-L) Eswatini Suppliers Association Secretary General Mduduzi Simelane, Member Philani Tsela, Vice Chaiperson Johannes Manikela and Chairperson Boysin Mamba. (Pic: Nhlanganiso Mkhonta)
Share

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.

Share
Written by
Nhlanganiso Mkhonta

Nhlanganiso Mkhonta serves as Business Editor at the Times of Eswatini. He reports on business, economics, finance, investment, entrepreneurship and public policy, producing insightful coverage and analysis of the issues driving Eswatini’s economy and the wider African business environment.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss

MaMkhize’s Eswatini team fire blanks in league opener

LOBAMBA – South African businesswoman Shauwn 'MaMkhize' Mkhize's Mbabane Highlanders AM played out a goalless draw against Green Mamba in a pulsating MTN...

Nation mourns Home Affairs Minister Princess Lindiwe

MBABANE — The nation is mourning the death of Her Royal Highness Princess Lindiwe, Minister of Home Affairs, who died yesterday following a...

Late CJ Bheki Maphalala repatriated from South Africa

MBABANE - The body of the late Chief Justice Bheki Maphalala has been repatriated into the country from South Africa. Maphalala's body was...

Mthandeni tells family he left because he felt unsafe

NGWEMPISI – Former Ngwempisi Member of Parliament Mthandeni Dube told his family that he left home because he felt unsafe. Dube’s home is...

Mthandeni vanishes as HMCS probes audio

MBABANE – Former Ngwempisi Member of Parliament Mthandeni Dube is nowhere to be found. This was determined after an enquiry team established by...

Related Articles

Quarry stone production up 158.8% as construction booms

MBABANE – A surge in construction activity across Eswatini drove quarry stone...

MTN Group vice president visits Eswatini

EZULWINI - MTN Group Senior Vice President Ebenezer Asante is in Eswatini...

Eswatini outpaces most SACU peers

MBABANE - Eswatini’s economy expanded by 6.1 per cent in the first...

EIPA launches digital tools for trade

EZULWINI - EIPA has launched two digital intelligence tools designed to give...