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TaiwanICDF, Swaziland Development Finance Corporation Sign Project Loan Agreement
The TaiwanICDF signed agreements for a Micro-, Small- and Medium-sized Enterprises Re-lending Project during a signing ceremony at the Swazi Ministry of Finance on May 16, 2012, witnessed by H.E. Tsai Ming-yaw, ambassador of the Republic of China (Taiwan) to Swaziland. This US$10-million project, comprising a seven-year loan with a two-year grace period, represents the first case of cooperation between the TaiwanICDF and Swaziland’s private sector, and is backed by the Swazi Ministry of Finance through a guarantee agreement.
As part of the project, the TaiwanICDF will disburse the proceeds of the loan to Swaziland Development Finance Corporation (FINCORP) in accordance with its funding requirements and corporate operating conditions. FINCORP will then re-lend such funds to micro-, small- and medium-sized enterprises (MSMEs) throughout Swaziland in order to create more local employment opportunities, and to promote rural development and improve people’s livelihoods. Specifically, funding will be made available to MSMEs whose work involves agriculture, manufacturing, freight and transportation, forestry, construction, industry, irrigation, purchase order financing and deposit financing. By providing access to such funding, the project should see MSMEs or contract manufacturers win business opportunities from government agencies or much larger enterprises.
FINCORP’s predecessor, the Enterprise Trust Fund, founded in 1995, was also known as the 44 Million Emalangeni (E44 Million) Fund after grants of E8 million and E36 million were provided by Tibiyo Taka Ngwane and the Taiwanese government, respectively, to fund its establishment. Operating under its present name since becoming a registered private corporation in 2002, FINCORP’s main purpose is to assist in the development of MSMEs and facilitate economic growth throughout Swaziland by providing wholesale financing services to local financial institutions, as well as funding resources to the retail finance market.
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- Update: 2018/03/01
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