Central Bank of Eswatini Enhances Small-Scale Enterprise Loan Guarantee Scheme (SSELGS)

Mbabane – The Central Bank of Eswatini has reinforced its Small-Scale Enterprise Loan Guarantee Scheme (SSELGS), aimed at facilitating lending to small and medium enterprises (SMEs) across the country. This initiative aims to mitigate financial risks for participating financial institutions, including commercial banks and eligible Non-Bank Financial Institutions (NBFIs), thereby encouraging increased lending to SMEs.

The SSELGS continues to provide guarantees for various purposes, such as the acquisition or repair of fixed assets, working capital, and order financing. The scheme offers substantial coverage, with guarantees ranging from 85% to 98% depending on the nature of the business and its operational status.

For start-up businesses, the SSELGS provides a guarantee cover of up to 95%, while already operational enterprises can benefit from an 85% guarantee cover. Additionally, special provisions are made for youth-led enterprises, with guarantees reaching up to 98% for start-ups and 95% for operational businesses.

Entrepreneurs interested in accessing loans under the SSELGS are encouraged to approach their chosen commercial banks, NBFIs, or the Development Finance Division for further information. This initiative aims to support the growth and development of SMEs in Eswatini by providing them with easier access to financing while minimizing financial risk for lending institutions.

The enhancement of the Small-Scale Enterprise Loan Guarantee Scheme reaffirms the Central Bank’s commitment to fostering entrepreneurship and driving economic growth through targeted financial interventions. By providing guarantees for SME loans, the SSELGS aims to stimulate investment, create employment opportunities, and contribute to the overall development of the small business sector in Eswatini.