Can Eswatini Produce a Unicorn? (3 of 4)
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10 Principles for Building a Successful Start-Up
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Eswatini entrepreneurs, prepare your ploughing fields – rain is coming! Speaking during the 2023 Entrepreneur of the Year Awards held last Friday, His Majesty King Mswati III said he looks forward to the day a liSwati running a small or medium enterprise makes their first E1bn through a legitimate business.
“We are pleased that the country initiated the Entrepreneur of the Year Awards competition because it inculcates a culture of excellence in doing business. This is why the Government continues to support the recognition of outstanding businesspeople with a view to showcasing their achievements. This also inspires other entrepreneurs to improve management practises in their enterprises,” he said.
For the past few weeks, Eswatini Startup Ecosystem newsletter, featured a 4-parts series titled, “Can Eswatini produce a unicorn?” written by Pinaco & Co, Senior Partner, Lwazi Ian Dlamini, which supports government’s aspiration to have a private-sector led economy with a fully developed startup ecosystem.
The pronouncement by the Head of State reinforces his thinking and opens an array of opportunities that Government’s commitment to developing the sector will bring.
In his speech, His Majesty acknowledged that the country’s Micro, Small and Medium Enterprises (MSMEs) sector plays a vital role in developing our economy, and it has a great growth potential. The sector employs approximately 92 000 emaSwati, which represents 21% of the country’s workforce and plays an active role in wealth creation, reducing poverty and generally improving the livelihoods of Eswatini.
According to Government, there are approximately 59 000 MSMEs in Eswatini generating a monthly turnover of E92.5 million.
“This underscores the need to pay particular attention to this sector to ensure that it continues to contribute to employment and the real economy,” His Majesty remarked.
Realising the importance of this sector, Government has established a E45 million MSME Revolving Relief Fund that supports formal and informal MSMEs that were affected by COVID-19. “The fund has assisted over 2 940 businesses, with a total of about E51 million having been disbursed since its launch in 2021,” it was reported.
“As the Government puts measures in place to work towards economic recovery,” His Majesty urged, “entrepreneurship must be at the centre of public discourse as one of the key opportunities to solve the country’s most pressing economic and social challenges.”
With unemployment currently at 58%, His Majesty is of the view that Eswatini must take action and make youth entrepreneurship a priority in the country’s development goals. This, he acknowledged, requires the development of programmes that will foster youth entrepreneurship by providing requisite entrepreneurial training and mentorship, incubation centres and financial assistance to young entrepreneurs.
Among other available funding options for entrepreneurs, there is clearly a need to bring onboard venture capital firms willing to collaborate with our startup ecosystem – a challenge that Pinaco & Co. as one of the enablers, has accepted.
In addition, there is need to build the country’s capacity to contribute to global data metrics on the startup ecosystem, thereby creating basis for a global investment case into the country’s startups, premised on data and identifiable opportunities.
Concluding his speech, His Majesty said, “We must fly our flag high and let the goods and services we export uplift the Eswatini brand to a level where it becomes synonymous with excellence and quality.”
Bayethe Wena Waphakathi!
