17 Mar 2021

Government has launched a plan which seeks to provide mechanisms for  informal sector businesses to respond to the effects of COVID-19.

Launching the plan on March 16, Minister of Investment, Trade and Industry, Ms Peggy Serame said it sought to develop sustainable measures to overcome challenges facing the sector.

She explained that the plan rested on two strategic goals, establishment of informal sector facilitation structures and economic revitalisation of the sector.

“The proposed interventions provide for an investment in the future capability of the informal sector and are aligned with the country’s National Entrepreneurship Policy and Vision 2036,” she said.

Ms Serame said the plan called for the establishment of a high capacity agency to facilitate engagement with informal sector participants and to manage all government’s interventions for the sector. 

Local Enterprise Authority (LEA) had been assigned to take on the role, she stated.

The minister noted that relief was already being provided for the sector through the Industry Support Facility with a P1 000 grant per business. 

“Parallel to the disbursement of the grant, phase two is the development of infrastructure that will ensure decent work hubs/ markets and market-access centres for informal sector business clusters and services, said Ms Serame.

She said projects would be prioritised according to their ability to benefit a broad spectrum of informal sector enterprises, and the number of jobs they could support.

The ministry, she said, would work with other stakeholders to undertake projects such as in the agriculture and service-related areas.

Ms Serame said the launch was meant to create awareness among the key stakeholders which included government, private sector, civil society and development partners. 

 It should translate into actual review of strategies to facilitate the informal sector in districts, regions and communities, she said.  

Ms Serame said the ministry was in the process of reviewing SMME guidelines, policies and relevant strategies to facilitate informal sector development.  

For her part, UNDP resident representative Ms Jacinta Barrins said her organisation had pledged support for the plan’s implementation with seed funds amounting to over P2 million already availed. 

Activities earmarked for support  included engagement of technical advisor, setting up of business intelligence system, promotion of digitisation of business operations and commissioning of a feasibility study on a social insurance scheme for the sector, she said.

Another speaker, Botswana Informal Sector Association chairperson, Mr Thatayaone Ramasu pleaded with authorities to allow sector participants’ voices to be heard. 

The sector played a major role in the country’s economic development and therefore  deserved to be given audience, he said.

 He however said with the launch of the recovery plan, hope was in sight for the sector.

Chief Executive Officer  Business Botswana, Mr Norman Moleele said his organisation attached a lot of importance to the informal and micro enterprise sector which he described as the foundation of most businesses.

He said the organisation had incorporated a number of activities and interventions for growing and supporting the sector in its 2018-2023 strategic plan.

The activities include conducting nationwide campaigns to encourage businesses to graduate from informal to the formal sector and working with the ministry of finance for additional incentives for business transitioning, he said.

Mr Moleele said Business Botswana, with the help of other stakeholders, had developed a market intelligence information system, e-market place and Covid market place, where informal sector participants could be listed in order to gain market access not just locally but internationally as well. 

He said the organisation was currently working with South African Trade Hub to provide financial literacy to SMMEs particularly those with the potential to benefit from AGOA. ends