14 Feb 2024

The recently unveiled Chema Chema Fund, a brainchild of the Minister of Finance, Peggy Serame emerges as a beacon of hope for Botswana’s informal sector, says FirstCred Chief Operations Officer, Mr Ambrose Batsalelwang. 

On Tuesday when briefing BOPA on the fund, Mr Batsalelwang said in the ever-evolving landscape of economic development, innovative initiatives were pivotal to fostering sustainable growth and creating avenues for job creation. 

He said the Minister’s announcement of the P200 million Chema Chema Fund in the 2024-25 Budget Speech reflected a strategic move towards unlocking the latent potential within the informal sector.

“It is indeed a laudable step that aligns with the ethos of economic diversification and inclusivity,” he said. “As a financial institution deeply invested in the growth of Botswana, FirstCred Limited recognises the profound impact this initiative can have on entrepreneurship and job creation.”

 Mr Batsalelwang said the preliminary data released by Statistics Botswana, indicating a 3.2 per cent contribution to economic growth from the informal sector in 2023, underscored the sector’s untapped potential. 

He reiterated that Minister Serame’s foresight in establishing the Chema Chema Fund aimed to catalyse fundamental transformation within the informal sector.

He said this injection of capital would provide the much-needed financial support to budding entrepreneurs and small businesses, with FirstCred leading through supporting individual employees of the said sectors with household financial instruments, thus fostering an environment conducive to sustained economic development. 

The Chema Chema Fund was not just a financial instrument, but testament to the government’s commitment to nurturing homegrown talent and fostering economic resilience, he said. Mr Batsalelwang said by empowering the informal sector, it paves the way for increased job opportunities, thereby bolstering the overall economic landscape. 

It was a strategic move that recognised the dynamism and adaptability inherent in small businesses and entrepreneurial ventures, he said.

He added that the minister’s announcement of additional initiatives, such as the Intellectual Property (IP) Motshelo Scheme and the Intellectual Property Ideas Incubation Centre, reinforced the commitment to indigenous research and innovation. In a rapidly evolving global economy, Mr Batsalelwang said protecting and commercialising intellectual property assets was paramount, indicating that these complementary initiatives will serve as catalysts for creativity, innovation, and, ultimately, economic prosperity. 

Mr Batsalelwang said the Chema Chema Fund represents a forward-looking approach to economic development, acknowledging the pivotal role of the informal sector.

“As FirstCred Limited does not only supports the growth of businesses across Botswana, we are forced to innovate at individual employer level as we applaud Minister Serame’s visionary steps towards a more robust and diversified economy,” he said. 

Mr Batsalelwang said the Chema Chema Fund, with its initial capital injection, was not just an investment in the informal sector; it was an investment in the future of Botswana. He urged the nation to collectively embrace and endorse this transformative initiative for the greater economic good of the nation. 

ENDS