NIDCS FAQs
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1. What does NIDCS mean?
The acronym NIDCS denotes National Industrial Development Corporation of Eswatini.
2. Which projects has NIDCS funded in the past before re-launch?
2.1. Loan
2.1.1. Nkalashane Cotton Farm
2.1.2. Ngwenya estate
2.1.3. Charcoal
2.1.4. Tinkabi Tractor Project
2.1.2. Ngwenya estate
2.1.3. Charcoal
2.1.4. Tinkabi Tractor Project
2.2. Equity
2.2.1. Small Enterprise Development Company
2.2.2. Eswatini Tractor Company
2.2.3. National Maize Corporation
2.2.4. Eswatini Printing & Publishing
2.2.5. Industrial Housing Company
2.2.6. Beral Eswatini
2.2.7. Gem Art
2.2.8. Eswatini Wire Industries
2.2.9. Interroute
2.2.10. Swazi Feeds
2.2.11. Knitwear Holdings
2.2.2. Eswatini Tractor Company
2.2.3. National Maize Corporation
2.2.4. Eswatini Printing & Publishing
2.2.5. Industrial Housing Company
2.2.6. Beral Eswatini
2.2.7. Gem Art
2.2.8. Eswatini Wire Industries
2.2.9. Interroute
2.2.10. Swazi Feeds
2.2.11. Knitwear Holdings
3. Is there a difference between NIDCS and SIPA?
Yes, there is a difference. NIDCS offers funding to develop viable projects whereas SIPA is focussed on promoting inward and outward FDI. Our services are therefore complimentary since we aim to leverage FDI by positioning the country as an attractive investment destination. We seek to re-enforce FDI attraction by providing partnership, support and finance through equity and portfolio investment, joint ventures, and loan financing in order to build confidence on the economy of Eswatini as a highly yielding investment location.
4. Will NIDCS focus on needs of SMEs?
NIDCS seeks to invest in and support SMEs in a manner which will yield satisfactory financial returns for the investors whilst contributing positively to the economy particularly in terms of entrepreneurship, new enterprise development and job creation.
We assist all sizes and categories of SMEs as long as they are legally registered and trading, and as long as the projects are in line with our mandate. We assist SMEs operating from Swazi Nation Land and in rural areas. One of our main objectives is to foster development of small and medium enterprises and cooperatives towards the creation of employment, particularly in under-developed areas of Eswatini.
5. What size or categories of SMEs do you assist? How formal should the SMEs be? Do you assist SMEs in Swazi Nation Land? Can small enterprises in rural areas be assisted?
We assist all sizes and categories of SMEs as long as they are legally registered and trading, and as long as the projects are in line with our mandate. We assist SMEs operating from Swazi Nation Land and in rural areas. One of our main objectives is to foster development of small and medium enterprises and cooperatives towards the creation of employment, particularly in under-developed areas of Eswatini.
6. What types of projects do you assist?
We assist in projects that are economically and financially viable, technically feasible, and environmentally friendly. The projects must also have sustainable medium to long term returns that will yield positive growth effects to Eswatini’s socio-economy.
7. It seems like the assistance promised to SMEs is too good to be true. How real are NIDCS services?
NIDCS is a Development Finance Institution (DFI). We have an industrial development mandate, so we are committed to providing finance to qualifying investments in order to meet the increasing demand of industrial development in Eswatini. NIDCS has been mandated by Government to stimulate the industrial development of the country. The Corporation is housed under the Ministry of Commerce, Industry and Trade and Government has put measures in place to ensure that the mandate is indeed executed.
8. How easy is it for SMEs to benefit from NIDCS or are your requirements and protocols aligned to the banks’?
It is easy for SMEs to benefit from our services as long as the funding requirement is towards an industrially inclined project. We require that the business be legally registered and be compliant with tax requirements. We also require financial record in the form of financial statements and projections for the business. We require a business plan that will provide:
- Sufficient information to convince NIDCS of the success of the business undertaking.
- Foundations of the business plan, based predominantly on facts and market research.
- Demonstration that the business venture is viable and has high growth potential and that all those involved in the project are able to deliver on the business plan.
- Formal existing commitments including contracts with customers for the supply of goods and services, letters of intent from customers, lease agreements and offers to purchase.
9. The NIDCS mandate seems to be very wide as it encompasses new technologies. How does NIDCS plan to operationalize the objectives?
We have an approved strategy in place to guide us and a Board to hindsight our operations. We have also collaborated with other developmental institutions that will assist in their various fields of expertise like entrepreneurship development, agricultural development, innovation and technology development, market linkages, standards development and quality assurance. We are already working with institutions like the Micro Finance Unit (MFU), Small Enterprise Development Company (SEDCO), National Maize Corporations (NMC), Eswatini Standards Authority (SWASA), National Agricultural Marketing Board (NAMBOARD), Royal Science & Technology Park and Eswatini Water and Agricultural Development Enterprise (SWADE).
10. What is entry level funding that can be granted to an individual or company?
We do not have a prescribed minimum but we aim to provide adequate funding as guided by the business plan. We will however, limit the maximum requirement on a case-by-case basis.
11. What is the cost of funding?
The cost of funding is not fixed at any rate yet. However, consideration of the developmental mandate compels NIDCS to finance below market rate where possible, be flexible and accommodative as much as it is possible in order to allow enough gestation time for the business under the influence of its funding.
12. Are there relationships between SEDCO and NIDCS for purposes of growing SMEs?
Yes, we have a great working relationship with SEDCO. We are placing reliance on their business development training and business plan services. We are relying on SEDCO to develop SMEs and their business plans to the level of qualifying for funding from NIDCS.
13. Why is mining excluded in the focus areas?
We have a comprehensive list of areas that we finance including mining and beneficiation.
14. Can NIDCS encourage Government to assist in the development of coal mines along the Sikhuphe and Mpaka areas? Can other uses of coal be developed other than beneficiation?
NIDCS is willing to assist with the funding requirements of coal mining, beneficiation as well as other coal processing technologies and businesses. We can conduct the necessary research towards areas of involvement and we can engage with relevant partners in order to financially assist where viable projects can be developed.
15. Do you fund feasibility studies?
No, we do not fund feasibility studies. However, we have partnered with experienced corporations outside Eswatini who have facilities available to finance feasibility Studies. NIDCS is ready to work with businesses who may have the need to access such facilities at any time.
16. What is your turn-around time?
Depending on the magnitude and complexity of the project, it can take up to three months to conclude a financing proposal. The availability of all necessary information shortens this time.
17. How do you protect intellectual property?
The onus to protect intellectual property lies with the owner who can be accorded protection by the relevant legislation under the Ministry of Commerce, Industry and Trade. We treat all information shared with us with a high degree of confidentiality. All employees are sworn to secrecy as per their employment contracts and information is kept securely. We also enter into Non-Disclosure Agreements with clients who may be ready to share their confidential information with us.
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