E1.5 mln earmarked for Textile, clothing MSMEs
By Delisa Magagula
On day four of the Eswatini International Trade Fair’s business seminar series, the Minister of Commerce, Industry and Trade Manqoba Khumalo unveiled a significant financing initiative aimed at revitalizing Eswatini’s industrial sector.
The government has earmarked E1.5 million annually to support micro, small, and medium enterprises (MSMEs) in the textile and clothing industry through an enhanced Production Incentive Scheme, known as PIS 2.0.
The announcement, made during a high-level seminar on Industrial Finance attended by ministers, Members of Parliament, senior government officials, private sector leaders, and international partners, underscores Eswatini’s renewed commitment to industrialization and job creation.
The textile and clothing industry remains a cornerstone of employment in Eswatini, particularly for women and youth. Recognizing both its potential and its recent struggles, the Ministry has reactivated the Production Incentive Scheme in a revamped format.
The scheme will provide, 100% grants to eligible enterprises and interest-free working capital loans valid for three months.
Through these facilities, PIS 2.0 seeks to strengthen competitiveness, foster innovation, and improve production processes in the textile sector.
Phase one, set to run over the next five years, will prioritize MSMEs. From FY 2026/27, phase two will expand to include larger companies.
The Minister highlighted that while Eswatini has historically led the region in manufacturing value addition, the sector has experienced a decline in recent years.
This trend threatens not only industrial growth but also job security. In response, the Eswatini National Industrial Development Corporation (ENIDC) has been tasked with creating sector-specific funds to reignite growth and resilience.
“Our mission is not just about funding projects for profitability but about restoring government’s public responsibility,” said the Minister of Commerce, Industry and Trade Manqoba Khumalo.
He further said, they must prioritize projects that strengthen local value chains and ensure that industrial MSMEs are not just included but empowered to participate in the growth of our economy with ease and confidence.
The ENIDC is working closely with South Africa’s Industrial Development Corporation (IDC), which has long played a supportive role in financing industrial projects across the region.
This collaboration, described by the Minister as one between a ‘big brother and partner’ is expected to co-fund initiatives in Eswatini that promote competitiveness and integration into the regional economy.
The Minister lauded the partnership as a model of mutual commitment.
“This partnership we treasure to the fullest as it is built on shared vision, and mutual commitment to regional integration,” said the Minister.
Industrial finance, according to the Minister, is not the sole responsibility of government institutions but a shared mission with the private sector.
Commercial banks and development finance institutions have already played a pivotal role in extending financial support to both MSMEs and larger enterprises. Their efforts have helped ensure that every Liswati can contribute meaningfully to the economy.
The new initiatives, particularly PIS 2.0, are designed to broaden access to financial resources and encourage companies to invest in interventions that will improve both processes and quality output. By doing so, the government hopes to create a more inclusive industrial sector that supports sustainable growth.
The Minister emphasized that ENIDC’s mission is deeply aligned with the 2023 Industrial Policy objectives and the ‘Nkwe’ mandate, both of which prioritize industrial development as a catalyst for economic growth.
Strengthening local value chains and fostering inclusion for MSMEs are central to these policy goals.
With E1.5 million set aside annually for grants under PIS 2.0, the government expects to see significant improvements in the productivity and competitiveness of MSMEs in the textile and clothing industry.
Addressing the audience, which included captains of industry and private sector representatives, the Minister pledged the unwavering support of the Ministry of Commerce, Industry and Trade.
“We are at a critical juncture now. Growth is threatened, but our resolve will remain strong. The Ministry pledges its unwavering support to all companies pursuing expansion initiatives. We urge you to engage with ENIDC, explore funding opportunities, and become active participants in shaping Eswatini’s industrial future,” said Khumalo.
Phase one of PIS 2.0, targeting MSMEs, will run through the next five years, with ENIDC leading implementation in close collaboration with the Ministry.
From 2026/27, the scheme will broaden its reach to large companies, ensuring that the benefits extend across the sector. The goal is not only to support existing enterprises but also to encourage new players to enter the textile and clothing industry, thereby creating jobs and expanding Eswatini’s industrial base.
The Minister closed with a note of gratitude, thanking IDC, South Africa, panellists, and participants for their contributions to the seminar.
“Let us move forward with courage, collaboration, and a shared belief in Eswatini’s potential,” he said.
The announcement came as part of the Eswatini International Trade Fair’s ongoing business seminar series, now in its fourth day.
The series has brought together key stakeholders to discuss pressing issues in trade, commerce, and industry, with a focus on practical solutions for economic growth.
With the launch of PIS 2.0 and the earmarking of E1.5 million annually for textile and clothing MSMEs, the government has sent a strong signal of its determination to reinvigorate industrialization, boost employment, and enhance competitiveness.
As Eswatini navigates economic challenges, initiatives like these represent both a lifeline and a long-term investment in the country’s industrial future