By Phiwa Sikhondze
Eswatini Bank, the National Maize Corporation (NMC), and NAMBoard have relaunched and expanded the Horticulture Fund Facility to provide crucial financial resources for local grain and horticulture farmers.
The expanded loan scheme aims to bridge the gap between financial institutions and smallholder farmers who often lack the necessary collateral or deposit to secure loans.
By providing a Credit Guarantee Fund of E2 million, this initiative seeks to facilitate access to affordable finance for farmers producing fruits, vegetables, maize, and beans. It is not just about providing loans; it is about empowering farmers to build sustainable businesses, improve productivity, and enhance their livelihoods.
The revamped initiative is designed to boost food production and reduce Eswatini’s reliance on imports, with a particular focus on maize and beans, two staple crops critical to the nation’s food security.
During the relaunch event at The George Hotel in Manzini, Eswatini Bank Managing Director, Nozizwe Mulela, hailed the initiative as a key milestone in advancing the country’s agricultural sector.
The fund, originally aimed at supporting horticultural production, has now been broadened to assist grain producers, a move aimed at strengthening food sovereignty.
“This credit guarantee scheme provides 20% cash cover for maize, beans, machinery, and horticultural commodities,” Mulela said, adding that the expansion aligns with efforts to support a wider range of crops.
The expanded Fund addresses challenges faced by smallholder farmers, such as limited access to financing, inadequate collateral, and the high costs of agricultural inputs.
A Memorandum of Understanding (MoU) between Eswatini Bank, NMC, and NAMBoard aims to ease these barriers by offering financial backing and technical assistance.
“This MoU fortifies our agricultural value chains, enabling us to support local production and enhance the country’s food sovereignty,” Mulela emphasized.
Since its inception, the Horticulture Revolving Fund has received 45 loan applications, of which 11 were approved, resulting in E1.03 million in funding. However, poor loan repayment and low uptake have hindered the initiative’s progress.
The relaunch seeks to address these issues by promoting greater responsibility among farmers and stronger partnerships with financial institutions.
NAMBoard CEO, Bhekizwe Maziya, stressed the importance of the initiative in promoting a thriving agricultural sector. He highlighted that while the Horticulture Revolving Fund has seen moderate success since its launch in 2022, there was a clear need to include maize and beans.
“This Fund is about empowering farmers to build sustainable businesses and ultimately enhance their livelihoods,” Maziya said, adding that NAMBoard has employed an economist to assist farmers with business plan preparation.
Beyond financial assistance, the partnership is focused on providing technical guidance, mentoring, and access to market opportunities for farmers. The fund will also support the adoption of climate-smart solutions, including greenhouses and environmentally controlled poultry sheds, to mitigate the impact of climate change on agriculture.
Eswatini currently spends over E2 billion annually on food imports, including fruits, vegetables, maize, and beans. The Horticulture and Grains Revolving Fund is a significant step toward reducing this dependency.
“This initiative is not just about providing loans; it’s about uplifting our farmers and enabling them to contribute to the country’s economic growth,” Maziya said.
As Eswatini embarks on this new chapter in its agricultural journey, the collaboration between Eswatini Bank, NMC, and NAMBoard is expected to play a key role in fostering economic growth, creating jobs, and securing the nation’s food sovereignty.
“Farmers, especially our youth, are always at the heart of Eswatini Bank. Let us grow together and feed our nation,” Mulela concluded.