Building Eswatini's Entrepreneurial Ecosystem: Unlocking Youth Potential
UNESWA Economics Society
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By: Mkhuleko Dlakubi , (BA Economics & Statistics Student, UNESWA)
“We are stuck in a definition of employment that is outdated where we are expecting a hirer and the hired to have a legal relationship,” stated Mr. Dennis Mbingo , the esteemed CEO of FNB Eswatini , in an exclusive interview with Nontobeko Tshabalala, as he reflected on his remarkable journey of nearly a decade with FNB Eswatini. This statement emphasizes the need to re-evaluate traditional notions of employment and empower young people to create their own opportunities.
Redefining Employment: A New Perspective
Mr. Mbingo posed a thought-provoking question: “Is it okay that a child who has gone to school and university is looking for employment in a village that has waste lying around unattended? Is that not an alternative way of thinking about employment?” This perspective challenges the youth of Eswatini to look beyond conventional job-seeking and instead leverage their skills to solve community problems and test new business ideas.
Mr. Mbingo advises young people to use their skills to address the needs of their communities and explore different sectors of the economy. “So young people, if you want to make it in this society, begin now to create a niche. You leverage on the resources that you have at your disposal, optimize them, and from there, you will be able to create a niche which is basically sustainable and generational.” This approach not only helps young entrepreneurs make money but also increases their visibility and allows them to build a well-rounded Curriculum Vitae.
Unlocking Eswatini’s Entrepreneurial Potential
The youth of Eswatini often feel that their country lacks the resources and opportunities they need to succeed. However, as Mr. Mbingo points out, Eswatini is brimming with untapped potential. “Eswatini is full of business opportunities for the youth,” he says. “With the right mindset and actions, the youth of Eswatini can unlock the country’s full potential and build a brighter future.”
Youth-focused organizations like Junior Achievement Eswatini (JA) are already playing a crucial role in nurturing this entrepreneurial mindset among high school students. Through their hands-on entrepreneurship and financial literacy programs, JA is equipping the next generation with the skills needed to tackle the prevailing youth unemployment in the country.
As Economist Dr George Choongwa, PhD observes, some African countries, such as Nigeria, Ghana, and Kenya, have recognized the importance of entrepreneurial education from an early age. By deliberately incorporating entrepreneurship tenets into their primary and secondary school curricula, these countries are empowering their young people to become innovative and self-reliant.
The youth from these nations have evolved, now defining their own futures rather than waiting for employment opportunities. This early exposure to entrepreneurial thinking and risk-taking gives children the foundational knowledge and emotional intelligence to pursue self-employment options, even in the face of unemployment.
Eswatini’s Unemployment Crisis: A Call to Action
The Eswatini Skills Audit Report, compiled and presented by the Eswatini Economic Policy Analysis and Research Centre (ESEPARC) in 2023, paints a concerning picture of the country’s unemployment crisis. The report reveals that the overall unemployment rate stands at 33.3%, with an alarming youth unemployment rate of 58%. Even among graduates, the situation is dire, with 50.1% of them being unemployed and only 8.2% being self-employed.
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These figures are particularly troubling when considering that almost 60% of Emaswati lived below the national poverty line in 2017, as disclosed by a World Bank Group report. The ESEPARC study, conducted in collaboration with the Taiwan Technical Mission, further highlighted that less than 40% of the 16,000 young people who complete high school each year are able to secure a place in Eswatini’s tertiary institutions.
Empowering Young Entrepreneurs: Overcoming the Challenges
Against this backdrop, the stories of successful young entrepreneurs, like Ms. Gcinile Mhlanga, co-owner of the Mugg and Bean franchise in Ezulwini, provide a glimmer of hope. Mhlanga acknowledges the challenges of accessing finance and seed capital, but she encourages aspiring entrepreneurs to start small, save what they can, and leverage the available funding options, such as the Youth Enterprise Revolving Fund, FINCORP, and the Regional Development Fund.
Mhlanga also advises young people to volunteer in the industry they wish to establish a business in, as this can provide valuable insights, experience, and connections. She emphasizes the importance of nurturing one’s passion, working hard, and maintaining a genuine interest in people, as they can be your future customers and a source of valuable information.
Harnessing the Power of Entrepreneurial Ecosystem
Initiatives like the Eswatini Youth Empowerment Programme (EYEP), a collaborative effort between the Kingdom of Eswatini's Government and the United Nations Development Programme (UNDP), are designed to empower the youth with opportunities, skills, and resources to pursue their dreams and goals. Mr. Zizwe Vilane , a renowned consultant in private sector and economic development, emphasized the significance of initiatives such as SEDCO's iHub, which provides networking and mentoring opportunities for budding entrepreneurs.
However, Mr. Vilane points out that the attitude of some Emaswati can be a barrier, as they often seek instant gratification and may not appreciate the value of these empowerment initiatives. He further urges the youth to be visible, present, and committed, as these qualities are essential for unlocking opportunities.
A Brighter Future through Entrepreneurship
The unemployment crisis in Eswatini presents a formidable challenge, but it also offers a unique opportunity for the country's youth to embrace an entrepreneurial mindset and unlock their full potential. By leveraging the available resources, building a strong support system, and cultivating a culture of perseverance and community engagement, the young people of Eswatini can transform their nation and create a brighter, more prosperous future.
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