The citizen entrepreneurial development agency (CEDA) is a government-owned development finance institution established by the government of Botswana in 2001. It was established to provide financial and technical assistance to citizens of Botswana to help them start and grow their businesses, create jobs, and contribute to the country’s economic growth. CEDA plays a vital role in promoting entrepreneurship in Botswana, with a particular focus on the development of small and medium enterprises (SMEs).
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CEDA’s mission and objectives
CEDA’s mission is to facilitate the development of sustainable and innovative citizen-owned businesses through the provision of financial and technical support. Its objectives include:
- Providing financial assistance to citizens to start and expand their businesses
- Facilitating access to markets, infrastructure, and technology for businesses
- Supporting the development of innovative and viable business ideas
- Creating employment opportunities for Botswana citizens
- Contributing to the development of the Botswana economy.
CEDA’s services
CEDA’s services are available to citizens of Botswana who are 18 years or older and are involved in business activities that are legally registered in the country. The organization supports a wide range of sectors, including agriculture, manufacturing, tourism, and services. It also provides special support for youth-owned businesses and businesses located in rural areas. CEDA provides a range of financial and non-financial services to entrepreneurs. These services include:
Financing
CEDA offers financial support to entrepreneurs in the form of loans. It has a variety of loan products, including start-up loans, working capital loans, and asset finance loans. These loans are tailored to the specific needs of the business, and repayment terms are flexible and affordable. CEDA also provides loan guarantees to commercial banks to enable them to provide loans to entrepreneurs who do not have sufficient collateral to secure a loan. The organization also offers equity financing for businesses that require a larger investment. Equity financing involves CEDA taking an ownership stake in the business in exchange for providing the necessary capital.
Investment promotion
CEDA is responsible for promoting investment opportunities in Botswana to both local and foreign investors. The agency collaborates with other government agencies and private sector organizations to identify and promote investment opportunities. CEDA also provides information to investors on the legal and regulatory framework, investment incentives, and market opportunities in Botswana. It also organizes investment promotion events, such as trade fairs and investment forums, to showcase investment opportunities in Botswana.
Business support services
CEDA offers a range of business support services to entrepreneurs to help them develop their business skills and knowledge. These services include training, mentoring, and coaching. The agency also provides business planning support, market research, and access to business advisory services. CEDA also assists entrepreneurs in identifying and accessing government incentives and support programs. It also facilitates linkages between businesses and other stakeholders, such as suppliers, customers, and research institutions.
Infrastructure and technology support
CEDA provides support to businesses to access infrastructure and technology. It partners with other government agencies and private sector organizations to provide access to shared facilities, such as industrial parks and technology hubs. CEDA also assists businesses in accessing technology, such as ICT and machinery. The organization also facilitates linkages between businesses and research institutions to enable them to access research and development support.
Access to market
CEDA facilitates access to markets for businesses by linking them with potential customers and suppliers. It also provides information on export opportunities and trade fairs to help businesses expand their markets. CEDA also assists businesses in developing and implementing marketing strategies. The agency also facilitates linkages between businesses and other stakeholders, such as distributors and retailers.
CEDA’s impact
Since its establishment, CEDA has provided funding and support to thousands of entrepreneurs in Botswana. As of 2021, the agency had disbursed over 6 billion Botswana pula (approximately 540 million USD) in loans and equity investments to more than 9,000 businesses. These businesses have created over 40,000 jobs in the country and have contributed significantly to the diversification of Botswana’s economy. CEDA’s impact on the economy can be seen in the growth of small and medium-sized enterprises (SMEs) and the diversification of the economy. It has also contributed to poverty reduction by providing employment opportunities for citizens. CEDA’s success can be attributed to its tailored services, flexible financing options, and partnerships with other government agencies and private sector organizations. CEDA’s success in supporting the development of citizen-owned businesses in Botswana has been recognized both nationally and internationally. In 2016, the agency received the African Development Bank’s African Banker Award for “Financial Inclusion”. In 2019, it was named the “Best Development Bank in Botswana” by Global Banking and Finance Review. As Botswana seeks to continue its economic growth, CEDA’s role in supporting citizen-owned businesses will remain critical.
