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Guidelines to ease access to capital

The recently revised Citizen Entrepreneurial Development Agency (CEDA) guidelines will help Batswana access capital, says Mr Thabo Thamane.

The CEDA chief executive officer made the remarks when addressing the South East District Council on July 28 (Tuesday).

“These are cutting edge guidelines. What we are doing is inclusive access to capital,” Mr Thamane said.

Mr Thamane said the guidelines offered an opportunity for locals to grow and start-up businesses.

He said Covid-19 had demonstrated that the country needed an economic transformation to reduce the export bill.

He said CEDA had selected special sectors such as manufacturing, mining, construction, energy, technology and innovation, agriculture, creative industry and tourism for special dispensation.

 Loans extended towards such sectors, Mr Thamane said, were made such that they attracted lower interest rates as a way to foster growth.

He said only personal surety and security over assets financed acted as security or collateral requirements for both small and medium scale businesses.

However, Mr Thamane stated that security would be mandatory for businesses over P5 million with exception to special sectors.

 “Additional security may be discounted based on job creation, economic diversification and location by large scale businesses,” he said.

He told the council that the agency was in the process of establishing cost recovery service fees for some of its services.

He, however, said it excluded small and micro businesses.

On other issues, Mr Thamane told councillors that CEDA was aware of reports that the agency was not funding integrated farming, but dismissed the claim as not true.

Mr Thamane also challenged the South East District Council to come up with an investment vehicle that it could use to partner with CEDA.

He informed councillors that the new guidelines came into effect when they were launched recently by President Dr Mokgweetsi Masisi.

During comments, councillors commended CEDA for introducing the new guidelines, saying they had the potential to move the country forward and empower locals. ENDS

Source : BOPA

Author : Bonang Masolotate

Location : RAMOTSWA

Event : Council Meeting

Date : Jul 30 Thu,2020

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