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Micro, Small, and Medium Enterprises (MSMEs) form the heartbeat of Africa’s economy, contributing not only to national GDP but also to social stability, innovation, and job creation.
In Eswatini and across SACU member states, over 90% of businesses fall within the MSME category, making them critical to the continent’s development agenda.
Many MSMEs operate in the informal sector, from small retail shops and cross-border traders to digital freelancers and start-ups. Despite their size, collectively they provide the majority of employment opportunities.
According to regional studies, MSMEs employ between 60% and 80% of the workforce, especially the youth and women. Their contribution to GDP is equally impressive, with some estimates showing that the sector accounts for more than half of Africa’s total economic output.
In Eswatini, MSMEs play an outsized role in sectors such as agriculture, manufacturing, retail, creative industries, and ICT services. Yet, their survival and growth often hinge on access to finance, digital platforms, and enabling regulatory environments.
The rise of the digital economy presents MSMEs with an unprecedented opportunity to scale beyond local markets. By adopting e-commerce platforms, mobile payment systems, and cloud-based solutions, even the smallest enterprise can reach regional and global customers.
However, many MSMEs face structural barriers, including high internet costs, limited digital literacy, and weak cross-border payment systems. This is why regional initiatives such as the SACU Digital Trade Summit are crucial. They provide entrepreneurs with the tools and knowledge to embrace digital transformation.
Minister Khumalo emphasised that digital tools are no longer optional; they are the new passport to trade. By going digital, MSMEs can reduce transaction costs, access new customer bases, and build resilience against economic shocks.
Across SACU countries, examples abound of MSMEs leveraging digitalisation to thrive. A young farmer in Eswatini using precision agriculture apps to track soil health is now exporting to neighbouring markets.
A group of artisans in South Africa has turned to e-commerce platforms to sell crafts globally. In Botswana, fintech start-ups are creating mobile loan products designed specifically for micro-traders.
These stories reflect the larger trend: when given access to technology, MSMEs don’t just survive they flourish, creating ripple effects throughout communities.
To unlock MSMEs’ full potential, governments must continue to simplify business registration, improve access to credit, and build affordable digital infrastructure. Equally important is providing mentorship and training to bridge the skills gap.
As SACU works toward harmonising trade regulations, MSMEs will gain smoother access to regional markets. This integration, combined with the anticipated E11.9 trillion digital economy, positions them as central players in Africa’s growth story.
Ultimately, empowering MSMEs is not just about economics. It is about inclusion, resilience, and building communities where prosperity is shared. When over 90% of businesses are MSMEs, their success is synonymous with national success.
