24 Nov 2019

Citizen Entrepreneurial Development Agency (CEDA) has so far funded 8 518 businesses valued at P47.7 billion since inception.

Responding to a question in Parliament recently, the Assistant Minister of Investment, Trade and Industry Mr Karabo Gare, further noted that CEDA had also created 63 634 employment throughout the country.

Through its structured finance wing, CEDA had invested P163.7m in various instruments, debentures, ordinary and preference share to 10 companies employing 691 people.

He said as, at October 31, CEDA’s active loan book was 5 067 businesses valued at more that P2.3 billion.

Mr Gare stated that since inception of the agency 2 052 businesses had been litigated and judgment was granted against the defendants.

He said a total of 156 businesses were auctioned and over P44.1 million was recovered from the sales, as the remaining litigated clients continue to be engaged to settle their debts, while the majority continued to pay through monitored payments plans.

Mr Gare said foreclosure at CEDA was a measure of the last resort, adding that as part of its advisory services, promoters were normally given the opportunity to sell their businesses before the agency decided foreclosure.

He said businesses of promoters who agreed to sell to the public were auctioned.

The Assistant Minister further explained that as part of its business advisory services, CEDA had a workout and restructure unit that dealt with rehabilitation of problematic projects.

He said the unit undertook interventions, amongst them, pre-appraisal mentoring, implementation mentoring, and need-based mentoring.

He, however, said mentoring was dependent on the willingness of the promoter to be advised.

He said there were many instances where promoters declined such interventions forcing the agency to litigate without exhausting the process as outlined.

Mr Gare said on average, CEDA litigated after three year-life of the project if it was not successful.

Selebi Phikwe West, Member of Parliament Mr Dithapelo Keorapetse had asked the minister to state the amount of money disbursed by CEDA as loans, grants and/or purchase of shares in businesses and in particular to state, the amount owed to CEDA by Batswana and number of companies affected.

He had also wanted the minister to state the number of beneficiaries taken to court for failure to pay and whether court orders were issued against them and their companies.

Mr Keorapetse further wanted the number of those who had their properties auctioned to recover the money, and what was being done to avert the problem. ENDS