24 Mar 2024

Though under-rated by many, cooperative model has proved to have worked for many developed countries by creating employment to millions of people across the world.

Cooperatives are geared to serve as a vehicle for generating income for its members and taking services to local communities, thus contributing to the sustainable economic growth and employment creation for local communities.

However, lack of funding could be a hindrance to such and even lead to the collapse of cooperatives no matter how viable the business is.

It is against this background that the Citizen Entrepreneurial Development Agency (CEDA) came up with a financial product targeted at new and existing cooperatives to support them to realise their dreams.

“CEDA is ready to offer financial assistance to the new and existing cooperatives interested in venturing into Citrus spin-offs, said the agency’s acting regional manager - North, Ms Ogaufi Tafa in an interview.

Dubbed the Cooperatives Product, the product is aimed at financing property development, equipment, plant and other asset acquisition as well as working capital needs with priority given to cooperatives operating in the special sectors such as manufacturing, mining, construction, technology and innovation, agriculture, creative industry and tourism, among others.

“This product gives cooperatives the opportunity to apply for funding ranging from P500 to P50 million,” she said.

However, she complained that since the inception of this product, no cooperative had ever been funded, urging cooperatives to take advantage of this product to expand their businesses or finance start-ups.

For CEDA to fund projects undertaken by cooperatives, she said the cooperative must submit a business plan, which would undergo assessment to determine  its viability.

Ms Tafa said the time had come for Batswana to form cooperatives or resuscitate those that collapsed to venture into spin-off projects of the citrus anchor project.

She said processing projects could come out of this project, adding, ‘this is the right time for Batswana to tap into our cooperative product’.

She encouraged Batswana to seize this opportunity to be players in the value chain, adding that the project would enhance the agricultural landscape and foster diversification within the industry.

Meanwhile, CEDA created an online platform which is a convenient way to unlock funding opportunities in the comfort of one’s homes, making it convenient for customers to submit loan applications anytime and anywhere.

Formed to provide financial and technical support for business development with a view to promote viable and sustainable citizen-owned business enterprises, she said CEDA had invested hugely on the manufacturing industry in Selebi Phikwe.

She said a lot of companies in the SPEDU region had been funded by CEDA, adding that agriculture was another area the agency would like to support in order to boost the sector and ensure food security in the country.

Meanwhile, those interested in forming cooperatives to benefit from the SPEDU region business ecosystem can venture into pellet making, honey production and processing, fruit processing, raw materials supply, among others. ENDS