FINCLUDE Enhances Small-Scale Farmers’ Access to Funding

The Hhohho Broiler Production Workshop’s second day introduced an exciting new opportunity for Eswatini’s smallholder farmers: enhanced access to financial services through the Financial Inclusion and Cluster Development Project (FINCLUDE).

This initiative, co-funded by the International Fund for Agricultural Development (IFAD) and the Government of Eswatini, aims to improve the prosperity and resilience of smallholders and micro-entrepreneurs. FINCLUDE supports sustainable farm and non-farm enterprises by facilitating market access, financial services, and climate-resilient decision-making.

During the workshop, Mlingani Mdziniso, MSME and Agribusiness Loan Consultant at Eswatini Bank, detailed FINCLUDE’s integration into the SME Loan Guarantee Scheme, managed by the Central Bank of Eswatini. The scheme, now bolstered by FINCLUDE, reduces barriers for small-scale farmers by:

• Covering up to 95% of loan guarantees for start-ups and 85% for existing businesses.
• Adding an additional 25% guarantee for qualifying loans, enabling greater access to financing for high-potential agricultural ventures.

Bridging the Funding Gap
“This partnership between FINCLUDE and the Central Bank of Eswatini significantly reduces the collateral burden on farmers, empowering them to invest in productive agricultural activities,” Mdziniso explained. He urged farmers to explore Eswatini Bank’s tailored agricultural loan products and take advantage of the enhanced guarantees to grow their operations.

Practical Procurement and Financial Management Tips
Farmers also received practical advice on procurement and financial management. Dumsile Dlamini, Technical Adviser at Elangeni Chicks, shared insights on preparing for broiler chick orders and ensuring operational efficiency:

• Advance Planning: Place chick orders at least three weeks ahead to ensure timely delivery.
• Supplier Selection: Source chicks from certified hatcheries to guarantee quality and health.
• Risk Management: Use contracts to mitigate risks such as late delivery or substandard products.

Additionally, Nothando Simelane from the Eswatini Agriculture Development Fund (EADF) inspired attendees with success stories of farmers who modernized their operations with EADF support. She encouraged participants to submit viable business proposals to access funding.

Collaborative Efforts for Growth
The workshop’s interactive sessions provided a platform for farmers to connect with financial institutions and agribusiness experts, fostering collaborative approaches to agricultural development. The involvement of FINCLUDE exemplifies a targeted effort to address rural financing gaps and enhance the productivity of Eswatini’s agricultural sector.

With its focus on reducing barriers and empowering smallholders, FINCLUDE aligns with the broader goals of sustainable development and economic resilience for rural communities.