20 Apr 2026

Local Enterprise Authority (LEA) is lobbying for the introduction of mandatory Small Medium and Micro Enterprises (SMMEs) registration.

Consulting on National SMMEs Mandatory Registered Framework recently, Masunga LEA branch manager, Ms Kgomotso Masunga said mandatory registrations were used to regulate access to SMME incentives and targeted support aimed at addressing identified SMME needs, including capacity development, technology access, modified financing solutions, market access facilitation, government procurement, among others.

Ms Masunga indicated that once approved and made into law, access to all SMMEs services, incentives and benefits would require proof of registration, adding that in a mandatory SMMEs registration environment, there were no penalties for non-registration while access to SMMEs targeted services and products were not accessible without proof of status.

She noted that the move for mandatory registration arose when stakeholders and development partners decried lack of reliable SMMEs data and its economic contribution in the country.

“The problem was further exacerbated by lack of an updated gazetted SMMEs definition in Botswana resulting in the use of multiple definitions across the economy,” she said, adding that information on the size and contribution of SMMEs to the economy was based on estimates.

On the other hand, Ms Masunga noted that mandatory registration would strengthen Botswana’s enterprise development ecosystem and support the country’s long‑term economic transformation agenda.

She said streamlining SMMEs registration was essential as it would empower government institutions to identify, classify and provide targeted support to small businesses and that would bridge policy planning gaps and resolve data inaccuracies, improve traceability and streamline the delivery of targeted SMMEs support programmes.

“Establishing a unified, mandatory registration and certification system would create a credible national SMMEs database that enhances data integrity, enables evidence‑based policy formulation and improves coordination across ministries, agencies and development partners,” she said.

She stated that the purpose of the stakeholders’ consultation process was to sensitise district councils, development partners and the public on LEA’s current lobbying efforts for a mandatory SMMEs registration framework and source their inputs and contributions and also to clearly articulate the socio-economic advantages of formalisation, specifically how mandatory registration facilitated better resource allocation and market access for local businesses.

Ms Masunga said the mandatory registration would provide a formal platform for the councils and key stakeholders to contribute feedback and ensure that the proposal was aligned with the realities of the local districts.

“The registration would also assist in eliminating functional overlaps and strengthen inter-agency coordination between government and development partners, enable precise tracking of the SMMEs sector’s size and its contribution to the economy,” she said.

Ms Masunga added that it would also position a competitive and formal SMMEs sector as a primary driver of economic growth, innovation, employment and directly support national development objectives.

She said LEA benchmarked within the SADC region in Mauritius and Mozambique and internationally at India and Bahrain.

Responding to the address, principal economic planner, Ms Boipelo Thekiso stated that government had long failed the informal sector, arguing that laws were fragmented through various departments while serving one client and that made clients to be tossed all over for services.

Ms Thekiso requested LEA and other planners to include SMMEs during planning processes and involve them in decision making, not planning for them and conduct evidence-based decision making when it involved research and development and create One Stop Centres for easy access of data.

Senior administration officer at Tati West Member of Parliament’s office, Mr Sidney Manyathelo indicated that the objective of SMMEs was to make a living and the laws were stringent on them to the extent that their products and properties were confiscated and destroyed or being charged.

He requested that all government departments assisted LEA to identify SMMEs and register them on their data base for easy access and reference.ENDS