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MBABANE - With the global scarcity of vegetable commodities on the rise, the Industrial Development Company of Eswatini (IDCE) is now offering a maximum of E98 million to farmers.

This was mentioned by the IDCE loan and procurement team in an interview with this publication yesterday.

IDCE said they offer agricultural loans up to E 8 million, depending on the si]e of the project.

“Produce farming and animal husbandry were well suited to this product. This loan will enable you to run your establishment efficiently and pay your dues on time. All farmers are welcome companies, associations, and farmer companies farming on both S1L and title deed land,” they said.

IDCE also mentioned that new farming technologies and energy-saving solutions are also keenly considered under this product.

IDCE also offers Asset Lease Finance (ALF). For this product, they said it was more suitable for the manufacturing, logistics, and transportation sectors in the procurement of trucks, machinery, and eTuipment.

Production

“This loan will enable your business to increase production, meet its demand, and undertake its core business through the purchase of eTuipment, machinery, trucks, buses, minibuses, and more,” they said.

IDCE also mentioned that they have loans that are targeted and suitable for every sector of the economy for the purposes of funding any procurement of goods or services reTuired by the business.

Eswatini%ank has introduced funding for enterprises that are involved in farming.

This was mentioned by the bank¶s agribusiness manager, Ma]ibuse .humalo, during the horticulture innovation platform at Royal 9illas.

.humalo said the types of businesses financed by the bank include all start-up businesses, sugar cane production enterprises, and crop enterprises.

The manager also stated that they are willing to fund because input prices for fertiliser, feed, seed, fuel, and pesticides have skyrocketed in 2022 compared to 2021.

He said the increase in fertiliser prices was the most notable, as it was three times more expensive than last year.

“The rise in input prices has resulted in a huge decline in net cash farm income in 2022 compared to 2021. This rise will result in high default rates in 2022 compared to 2021,” he said.

.humalo also mentioned that as input prices rise, some clients use less than the recommended input amounts, and some are failing to strive

The banker said the market price was not increasing at the rate at which input costs were increasing.

“Policy options are necessary to mitigate this challenge, and expanding credit access for farmers remains imperative,” he said.

Repayment

He added that financial institutions should be open to engaging with struggling enterprises and have flexible loan repayment options.

He said the funding opportunity was divided into two aspects, which include the Export Credit Guarantee (ECG) and the Small Scale Enterprise Loan Guarantee Scheme (SSELGS).

The Export Credit Guarantee (ECG) provides security for credit facilities granted to eligible exporting enterprises.

He said the maximum credit offered in ECG should not exceed E . million, and the guarantee was 0 per cent of the order to be financed. “The minimum contribution from the business promoter should be at least 10 per cent and the interest rate charged is one per cent per annum,” he said.

.humalo added that start-up SME enterprises with export approval were also eligible to apply under the ECG scheme.

The manager also mentioned that SSELGS provided security for credit facilities granted to eligible enterprises. He said the maximum credit should not exceed E1 million for any eligible borrower.

The guarantee is per cent for start-ups and 8 per cent for existing enterprises while the interest rate is about five per cent per annum. He said this includes the revolving fund and financial inclusion.

.humalo added that they have worked with ESWADE under the Smallholder Market-led Project (SMLP) and Lower Usuthu Smallholder Irrigation Project Phase (LUSIP) II Development. He said

per cent of new schemes were financed by the bank.