06 Nov 2016

The government of Botswana has historically recognised the important role of Development Finance Institutions (DFIs) in inculcating the spirit of entrepreneurship among its citizens to achieve sustainable economic development, Vice President, Mr Mokgweetsi Masisi has said.

Mr Masisi said Thursday (November 3), when officiating at the 2016 Chief Executive Officers Forum of the World Federation of Development Finance Institutions (WFDFI) themed: “DFIs Sustaining Relevance in the Age of Disruption”.

To support the development of the economy and address market failures, he said “government has over the years established institutions and programmes to support the development of the economy and address market failures.”

Such institutions, he said included the; National Development Bank (NDB), Botswana Development Corporation (BDC) and Citizen Entrepreneurial Development Agency (CEDA).

He said NDB was established to provide a varied range of financial services to the country’s business sector and the public at large through provision of loan financing for new and existing undertakings in different economic sectors.

To promote commercial and industrial development, Mr Masisi said government also established BDC. The Corporation provides financial assistance to investors with commercially viable projects; support projects that generate sustainable employment for Batswana and promote skills development of the local workforce; encourages citizen participation in business ventures and fosters linkages with local industry.

Additionally, he said government established CEDA to provide financial and technical support for the development of small, medium and large scale businesses, ‘with a view to promoting viable and sustainable citizen-owned businesses.’

“Government recognised that capital is often not readily available for building entrepreneurs, especially in developing economies. Therefore, CEDA is one of the citizen empowered initiatives aimed at supporting development of sustainable citizen-owned enterprises and increasing citizen participation in the development of the economy,” he said.

Since its inception, CEDA had financed 6 055 projects in different sectors of the economy, valued at P4.2 billion and created over 52 000 employment opportunities.

To ensure accessibility for its services and reach out to all sectors of society, including; women, youth and remote area dwellers, Vice President said the agency had branches across the country and continued to be innovative to ensure relevance to the need and aspirations of citizens as witnessed by different types of product ranges developed since its inception.

Such products, he said included the recently introduced facility called Micro-Finance, aimed at promoting and encouraging a savings culture.

Furthermore, to ensure effective and meaningful participation in economic development, Mr Masisi said government also continued to develop relevant policies, programmes and necessary skills and capabilities of its citizens.  Among such initiatives, he said was development of the National Entrepreneurship Policy which is currently under review.

Additionally, as part of human capital development, he said government introduced entrepreneurship education at secondary school level to inculcate the spirit of entrepreneurship at the formative stage.

“Citizen Entrepreneurial Development Agency also provides training and mentoring programmes that are aimed at boosting skills in business related functions, such as management in the fields of; marketing, finance, operations and human resources management,” he added.

As one of the objectives of the forum is to discuss how DFIs could mobilise resources to ensure successful implementation of Sustainable Development Goals (SDGs), Vice President said the government of

Botswana was committed to implementing SDGs and putting Batswana on a sustainable path by 2030.

“We have made great strides in eradicating abject poverty, creating decent jobs, upholding human rights and gender equality, as well as respecting the rule of law,” he added. ENDS