BY SIKHULILE DLAMINI

Mbabane – A strategic credit guarantee facility under the Eswatini Agriculture Development Fund (EADF) has successfully enabled Eswatini Bank to disburse approximately E10 million in loans to 12 commercial and smallholder farmers—demonstrating a breakthrough in agri-financing that is catalyzing real change across Eswatini’s agricultural landscape.

This milestone was highlighted during a recognition ceremony held at Eswatini Bank’s Head Office Auditorium, where 15 farmer beneficiaries of the EADF Credit Guarantee Scheme were honoured for their pioneering role in strengthening national food sovereignty.

At the heart of the celebration was a powerful message: access to finance is no longer an elusive dream for Eswatini farmers. Thanks to the EADF-backed credit guarantee mechanism, the barriers to affordable agricultural loans are being dismantled—one farmer at a time.

“This isn’t just about funding—it’s about enabling transformation,” said Dr Nozizwe Mulela, Managing Director of Eswatini Bank. “Through the EADF Credit Guarantee Scheme, we have approved and disbursed loans worth E9.66 million, with the fund providing guarantees exceeding E10.5 million—representing 109% coverage of our exposure.”

Mulela described the facility as a robust risk-sharing model that has reduced the burden on both the bank and the borrower. With a fixed interest rate of 9%—well below the prevailing prime lending rate—and encouragement for agricultural insurance uptake, the initiative is designed to promote sustainable, climate-resilient agribusiness.

The Principal Secretary in the Ministry of Agriculture, Mr. Sydney Simelane, echoed this sentiment, commending the partnership as a model of effective public-private collaboration.

“The Government of Eswatini is proud to be part of an initiative that does more than just lend money. It empowers, trains, and transforms,” said Simelane. “Our goal is to build resilient food systems, reduce dependency on imports, and uplift livelihoods—especially in rural communities.”

The event was not only ceremonial but practical. Beneficiaries engaged in a capacity-building session, learning about financial management, market integration, and sustainable agribusiness practices. Their commitment was palpable.

“This support has changed our lives,” said Msimisi Shabangu, a farmer representing the beneficiaries. “We now have the capital and knowledge to increase productivity and contribute meaningfully to food sovereignty.”

Both the Bank and the Ministry underscored the importance of inclusivity, celebrating the active participation of women and youth among the recipients. These demographic groups are seen as critical to the long-term sustainability of agriculture in Eswatini.

The EADF Credit Guarantee Scheme is part of a national effort to foster inclusive agricultural financing, in alignment with Eswatini’s National Development Plan and the Ministry of Agriculture’s Strategic Roadmap. The fund supports a variety of agri-enterprises, including maize and bean production, horticulture, poultry, and mechanisation.

“We are not just sowing crops; we are sowing resilience, opportunity, and national pride,” read a joint statement from the event organisers.

As the country navigates economic recovery and climate uncertainty, the success of the EADF Credit Guarantee Scheme offers a template for scaling access to finance in underserved sectors, ensuring that farmers can grow not only crops, but thriving businesses.