15 Dec 2016

Mabogo-Dinku, a Citizen Entrepreneurial Development Agency (CEDA), initiative that was launched in August has proved to be beneficial to micro entrepreneurs in Kgatleng.

When making a presentation at the Kgatleng District full council meeting on December 14 in Mochudi, CEDA chief operations officer, Mr Andrew Madeswi, said they had registered 45 groups made of 301 individuals.

He said already 140 individuals had been trained while an additional 161 individuals would undergo training starting January 2017.

Mr Madeswi said they had three groups with loans valued at P90 000 and group savings valued at P23 800. He further said of the 45 groups, 39 wer in Mochudi, three registered at Bokaa, two at Malotwana and one at Matebele.

The chief operations officer said in 2013 and 2014 they undertook a study on micro finance opportunities in Botswana and conclusion of product development was done in 2015 and later launched in august of 2016.

Mr Madeswi said micro entrepreneurs came into picture after they realised that the bulk of small businesses were excluded by financial institutions due to their informal business structure, strict requirements and complex application processes.

He said those who apply must earn below P2 000 per month and must also be 18 years and above being citizens of Botswana.

He further said they offer loans ranging from P500 to P150 000 per person to individuals who belong to self-help groups made of five to 15 members who know each other well but not from the same family and are accountable to each other. Mr Madeswi said group funding is based on collective savings because it encourages savings culture and members must have saved a minimum of 10 per cent  of the amount they intend to borrow from CEDA.

He said the loan should be paid between 3 -12 months adding that they have flexible repayments aligned to nature of the micro businesses.

In response to the presentation, Kgatleng councilors agreed in one accord that this is a good product which has come handy and will be beneficial to micro businesses who were struggling to get financial boost before.

Councilor Joseph Setoutwe of Moshawana ward asked CEDA to consider increasing the minimum set salary to include other Batswana who may be interested in the product. ENDS