Eswatini MPs Push for Changes to Youth Enterprise Revolving Fund

Members of Parliament in Eswatini are calling for changes to the Youth Enterprise Revolving Fund, citing concerns over fragmentation of youth empowerment programs, inadequate funding, and land insecurity. The MPs argue that these challenges undermine efforts to address youth unemployment and promote entrepreneurship in the country. They are pushing for a centralized governance strategy to improve coordination between stakeholders and ensure that resources intended for young people translate into tangible economic opportunities.

The Youth Enterprise Revolving Fund has been criticized for reaching only a small fraction of aspiring entrepreneurs, providing modest capital to a few hundred micro-enterprises while leaving tens of thousands of viable applicants without seed funding or operational capital. The limited financial support has prevented youth-owned businesses from reaching the scale necessary to stimulate economic growth and absorb the growing number of school leavers entering the labor market annually.

Another major concern raised during consultations was the difficulty young agricultural entrepreneurs experience in accessing and retaining land. The MPs noted that land insecurity remains one of the most significant structural barriers facing young farmers, with some experiencing interruptions to their farming activities due to land disputes. Young people have proposed that underutilized and vacant farmland be allocated to them to promote self-reliance and address unemployment and food insecurity.

The proposed amendments to the regulations seek to address some of the operational challenges affecting the Youth Enterprise Revolving Fund, particularly delays in processing loan applications. Finance Committee Chairperson and Lobamba Lomdzala MP, Marwick Khumalo, informed the MPs that Regulation 7 has been amended to start the process at the chiefdom level, but not necessarily requiring a stamp.

The MPs have suggested that umphakatsi stamps should be accessible cheaply at the tinkhundla centers, rather than being issued by chiefs. However, some argued that it is not all chiefdoms where residents have to pay for the stamps. Khumalo said the issue has been addressed, and the process will start at the chiefdom level, but not necessarily requiring a stamp.

The report states that young people proposed that fertile land lying idle could be transformed into productive agricultural hubs if placed in the hands of young farmers. Through secure access to such land, they believed they could establish commercial crop and livestock enterprises, strengthen regional food supply chains, and stimulate rural economic development.

The changes to the Youth Enterprise Revolving Fund aim to address some of the challenges facing young entrepreneurs in Eswatini. The MPs' push for a centralized governance strategy and increased funding seeks to improve the effectiveness of youth empowerment programs and provide more opportunities for young people to access resources and support.

Key points

• Eswatini MPs demand changes to youth enterprise fund to address youth unemployment and promote entrepreneurship.
• Proposed amendments seek to address operational challenges affecting the Youth Enterprise Revolving Fund.
• MPs push for centralized governance strategy to improve coordination and effectiveness of youth empowerment programs.