The Central Bank of Eswatini (CBE) manages two Credit Guarantee Schemes under the Development Finance Division (DFD); namely Export Credit Guarantee Scheme (ECGS) and Small Scale Enterprise Loan Guarantee Scheme (SSELGS). The schemes were established in the early 1990s by the Government of Eswatini under the Ministry of Commerce, Industry and Trade, and were placed at the Central Bank for administrative purposes.
The schemes are utilized to cover lack of adequate collateral to cover risks associated with Small-Medium Enterprises (SMEs) business loans, catering either for the domestic market or for those producing for the international (export) markets. Under ECGS, the guarantee cover is 90% for Pre- and Post-Shipment credit facilities of up to a maximum amount of E3,300,000. The exporter has to contribute an additional security of 10% of the loan approved. The maximum loan under SSELGS is E1,000,000 and the guarantee covers are 95% for start-up businesses and 85% for existing businesses, with the applicant required to contribute 5% and 15% under start-up and existing businesses respectively. Swati youth between 18-35 years benefit under the SSELGS, the guarantee covers are 98% for start-up businesses and 95% for existing businesses, with the applicant required to contribute 2% for start-ups and 5% for existing businesses.
The financing institutions participating under the schemes comprise commercial banks and non-bank financial institutions; namely:
- First National Bank Swaziland
- Eswatini Development and Savings Bank
- Eswatini Development Finance Corporation (FINCORP)
- Eswatini National Industrial Development Corporation (ENIDC)
- Industrial Development Company of Eswatini (IDCE)
- Nedbank Swaziland Limited
- Standard Bank Swaziland
- Youth Enterprise Revolving Fund (YERF)