The revised CEDA guidelines are Godsend to an economy
Lanched on the 16th July 2020 by His Excellency DR.Mokgweetsi E.K.MASISI President of the Republic of Botswana delivered the Revised guidelines for CEDA to ensure the growth and diversification of our economy, led by the private sector.
The Guidelines are aimed at:
- Facilitating citizens to venture into business by providing favourable lending terms with regard to;
– loan limits,
– interest rates,
– repayment periods
- Equity component,
- Service fees and security requirements,
- Equipping citizens with entrepreneurial and management skills, training and mentoring services as well as;
- Facilitating access to loans by the youth, women and people with disabilities, in short, inclusivity.
- Loan limits have been increased for small businesses to One Million Pula (P1 million), medium businesses Ten Million Pula (P10 million) and large businesses Fifty Million Pula (P50 million).
- The interest rate for loans for small scale businesses in the special sectors of manufacturing, technology and innovations, agriculture, the creative industry and tourism has been lowered by 3% from the current prime lending rate of 5.75% to make it 2.75% and the repayment period has been increased from five to seven years.
Furthermore, CEDA continues to play a critical role in facilitating improved financial and economic inclusion in the microfinance segments. A good example is the Mabogo Dinku product, which has supported Eight Hundred (800) groups since 2016, comprising Three Thousand (3000) individuals, funded at Twenty Seven Million and Four Hundred Thousand Pula (P27.4 million). This has, in turn, created Three Thousand, Five hundred and Thirty-Four (3,534) jobs nationwide.