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Home » News » Business » Barclays Botswana launches SME program

Barclays Botswana launches SME program

Publishing Date : 13 November, 2017

Author : REARABILWE RAMAPHANE

Barclays Botswana has once again introduced a more convenient package and small medium enterprises tailored initiative in the area of procurement and logistics businesses.


The Enterprise and Supply Chain Development Programme (ESD) will provide businesses development facilities and access to financial assistance so that SMEs can fulfill their purchase orders and watch their businesses prosper.
When giving a key note address at the launch in Gaborone this past Wednesday Barclays Managing Director, Reinette van der Merwe said her company recognized the integral role played by small medium enterprises in the growth of Botswana economy and diversification of the latter.

"When we grow our business, those around us should grow with us and prosper. This is what will drive economic growth in our country. Based on our research of SMEs early development, the ESD Programme will aim to increase SME access to financial coaching and mentorship,” she said.


Explaining the package, Barclays Head of Enterprise and Supply Chain Development Programme, Kushata Chilisa said SMEs were the heartbeat of Botswana’s economy but were currently challenged when it comes to them accessing financing hence the programme. She explained that  small medium enterprises engaged in supplies and procurement both for government and private sector purchases will partner with Barclays in form of an MOA and be provided with financing to resource their procurement and supply tenders.


“We will be giving loans to qualifying SMEs with evident financial discipline and book keeping record without asking for security,” she said.  “The project is aimed at addressing challenges faced by small enterprises in Botswana.” Botswana Chamber of Mines which is a commercial lobby group of mining companies in Botswana also presented on their similar program which compliments the Barclays package. Joe Ramotshabi said through their program they have been able to partner with over 30 businesses and employ over 400 talented Batswana.


 “Our programme is made up of procurement managers from all mines operating in Botswana.” Ramotshabi said as a company in the mining sector which constitutes numerous procurement, purchases and supply of equipments, materials and other instruments used in daily operations and support services they came up with the program to boost government efforts of employment creation.


“We looked at what we could use to complement the government to create employment and diversify the economy and we came up with our own project too. We identify capable citizen owned companies that need to be mentored to grow and offer services and supply products to the mining sector and put them under our programme,” he said.


Government efforts


Barclays has over the years developed a number of initiatives aimed at empowering SMEs, the products supplement a number of national strategies put together by government and the private sector. Small Micro & Medium Enterprises (SMMEs) have been identified as the missing puzzle in Botswana’s economic makeup. This sector comprises small scale business, community cooperatives, hawkers, roadside traders as well as medium scales businesses. Over 30% of Botswana’s workface is employed by small medium enterprises. This sector currently contributes over 20% to Botswana‘s economy.


In its quest to empower Batswana and realize economic diversification away from the diamond sector, as well as employment creation and sustainable growth, the Government of Botswana has setup various business facilitation arms and also introduced a number of programs and initiatives.


Youth Development Fund under the Ministry of Youth Empowerment, Sports and Cultural Development intends to finance young people to start up medium enterprises in almost every sector from agriculture , manufacturing and ICT. The Department of Gender Affairs under the Ministry of Nationality, Immigration  and Gender Affairs offers the Women’s Grant to groups of women to a tune of P350 000 for the women to turn community cooperatives and indigenous small medium business into profit making entities.


Local Enterprise Authority ( LEA) under the Ministry of Investment Trade & Industry offers development and support services to the local industry needs of SMMEs, The Authority's key sectors are manufacturing, tourism, agriculture, and any services that support the three business sectors.


In particular, LEA targets women, youth, and the unemployed. In delivering their mandate and mainly supporting the Small Micro & Medium Enterprises LEA conduct entrepreneurship awareness workshops annually across the country to cultivate the spirit of entrepreneurship in youth and the unemployed.


The Citizen Entrepreneurship Development Agency (CEDA) operates as an investment arm and financer to viable projects and feasible business ideas. Although it initially gave funds of up to tens of millions, CEDA recently introduced an SMME tailor made initiative-Mabogo Dinku.


Through the program CEDA provides subsidized loans for various micro-entrepreneurs to enable citizen participation in enterprise development. Mabogo-Dinku loan offers micro-enterprises an opportunity and enables citizen participation in enterprise development.
The initiative provides micro-enterprises with funds for their business needs ranging from working capital to small asset finance. Mabogo-Dinku offers short term loans from P500.00 to a maximum of P150, 000.00 per person, payable in 3-12 months to citizens who are micro-entrepreneurs to assist in the growth of their business.


Namibia’s deliberate actions on SME development


Namibia, whose economical setup is similar to that of Botswana, seems to be progressing as far developing SMEs is concerned. The Namibia Ministry of Trade, Industry & SME Development scooped position 1 in the Country Pavilion category at the last week Global Expo held in Gaborone.


In an interview with Brian Patako, senior official representing the Ministry WeekendPost established that the Namibian Government took deliberate steps to enact the Small Medium enterprises development as a key national agenda hence the renaming and realignment of the trade ministry to the nomenclature “Ministry of Trade, industry & SME Development” in 2014.


According to Patako SMEs currently contribute only just above 12 % to the Namibian economy, a figure that improved tremendously since 2014 prioritization on empowerment of the SME sector. “As much as we pursue foreign direct investment (FDI) realized we needed to put forward the development of our ordinary people businesses, because we have like all other African countries experienced the wrath of fly by night investors and pseudo business people who come into our country and exploit our generosity, pocket proceed and exit,” he said.

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