01 May 2024

Those seeking to apply for Chema Chema Fund have been advised to weave viable and watertight plans for their informal businesses with special emphasis on avenues of paying back the loan without defaulting or outright failure.

Chema Chema Fund facilitates new and existing informal businesses through inclusive financing and development, by providing affordable short-term loans to citizen informal businesses.

Speaking during a series of kgotla meetings in his constituency, Member of Parliament for Bobonong, Mr Taolo Lucas said potential beneficiaries should be shrewd in their planning before applying.

He warned his electorate that since the fund was in essence a loan that required the beneficiary to repay in between six and 12 months, they would be required to repay the loan so that other informal sector businesses could benefit from the same.

“Please, don’t rush to apply for Chema Chema until you have your plans in motion. However, you can apply as quickly as possible if you have everything sorted out,” said MP Lucas.

The Bobonong legislator also advised his constituents against requesting for more funds than they needed.

“Don’t cut more than you can chew and end up being overwhelmed when it’s time to repay the loan,” said Mr Lucas.

While warning his electorate about the dangers of not servicing their loans, the MP also cautioned the electorate to be careful enough against who they source information on Chema Chema from.

The MP said that there would be opportunists who would disguise as consultants and swindle informal businesses off their hard earned cash.

“We are aware that soon, there will be opportunists masquerading as LEA or CEDA consultants. I advise you to shun them and seek assistance only from LEA and CEDA officials because they are the ones charged with that responsibility,” he said.

When approved, informal sector businesses will have access to credit through the provision of affordable short-term loans to finance their existing operations or expand their current operations, including procurement of necessary business aiding equipment.

Also, decent operational infrastructure may be provided to grouped informal businesses in targeted operating places countrywide.

The targeted audiences, with tighter control, mentorship and monitoring, include informal sector entrepreneurs, small business owners, women and youth entrepreneurs. ENDS