22 Jul 2024

Permanent Secretary in the Ministry of Entrepreneurship, Mr Kabelo Ebineng, has issued a warning to informal sector entrepreneurs in Mahalapye to remain vigilant against misinformation intended to damage Chema Chema Fund reputation.

During a recent walkabout at the Mahalapye bus rank and Sefalana, Mr Ebineng emphasised that Chema Chema Fund was established to provide essential funding for informal sector businesses, urging the public to engage only with authorised representatives for information regarding the initiative.

“No one should be charged for training or assistance when applying for the funds. Both new and existing informal businesses are eligible to benefit from this programme,” he said.

Accompanying Mr Ebineng on the walkabout were, Mr Godfrey Molefe, Chief Executive Officer of the Local Enterprises Authority (LEA), and Mr James Moribame, Acting Chief Executive Officer of the Citizen Entrepreneurial Development Agency (CEDA). 

The event aim was to raise awareness about the programme and to offer firsthand information to potential beneficiaries.

Concerns were raised regarding the slow registration of informal sector entrepreneurs for the Chema Chema Fund, attributed largely to misleading information circulating in the community. 

Mr Ebineng noted that the number of applicants from Mahalapye and surrounding villages was significantly lower than in other districts. 

He revealed reports of individuals instilling fear among potential applicants by falsely claiming they would face imprisonment for failing to repay loans within three months. 

This, he said were false allegations from the naysers to discourage Batswana from benefiting from the programme. 

He said beneficiaries not only had access to funds but also received training in business management and growth strategies, enhancing their chances of success. 

Furthermore, he highlighted the complete landscape of the Chema Chema Fund by mentioning that even defaulters of youth grants and Small, Medium, and Micro Enterprises (SMMEs) had an opportunity to benefit. 

Mr James Moribame said the lending agency was tasked with the administrative duties of funding Chema Chema Fund applicants. He said the majority of the work in preparation for funding was being done by LEA. 

He said Batswana should not be afraid to take advantage of the programme, as it was beneficial to their businesses. 

Further, he  said requesting for information on the fund was essential for their success as it eases any fears of applying for funding. 

He reminded them that the fund offered loans at a low interest of 2.4 per cent charged once off and added that the loans were insured. 

Mr Moribame said the repayment of the loans remained the responsibility of the borrower and the expectation was that they pay back so that others could be assisted as well. 

“Upon loan  approval, informal sector businesses will have access to credit through the provision of affordable short-term loans to finance existing operations or expand current operations, including procurement of the necessary business aiding equipment,’’ he said. 

He encouraged business owners and those who want to start small businesses to take advantage of the fund and boost their businesses  as well as improving  their lives.  

For his part, Mr Molefe said government had mandated to register and train Chema Chema Fund beneficiaries. Since the launch of the fund, he said their offices across the country had inundated with applications been f small business owners . 

Some of the beneficiaries complained about the growing challenges in securing market for their produce, saying in most instances, retailers regulate prices, leading to losses. Some said the period for repaying the loans was too short.

 Ms Engelinah Mujokeri, who sells various items including sewing clothes, aluminum pots, wooden spoons and tab locks, said she knows about the Chema Chema Fund but has not registered yet because she does not have enough money to purchase stock.

 She, however, promised to register soon. She said it has been in the business and was able to send to her children to schools up to tertiary. ENDS