Hope springs eternal as ‘Chema Chema’ launches
MAUN: The much-anticipated Chema Chema fund was finally launched here on Friday at the Old Mall. The event was attended by dignitaries who included Vice President Slumber Tsogwane, Minister of Entrepreneurship Karabo Gare, and Kgosi Tawana amongst others.
Chema Chema is a government initiative aimed at boosting the country’s economic growth and creating more job opportunities for Batswana in the informal sector.
Since its announcement during this year’s Budget Speech, the informal sector, estimated to employ as many as 191,000 people—mostly women and youth—has shown optimism about the fund’s potential, though some quarters have labelled it as a ‘political gimmick’ by the ruling party.
Speaking at the launch, Vice President Tsogwane expressed that the economy grapples with low levels of economic diversification.
He added that there are limited formal job opportunities and “the informal SMME sector has been a real alternative for employment and improved livelihoods for many Batswana”.
According to Tsogwane, when properly facilitated, the informal sector has the potential to turn around the fortunes of any economy.
“According to Statistics Botswana, the contribution of the informal SMME sector to the Botswana economy has averaged around five percent for the past 10 years. “The most recent statistics place its contribution to the Gross Domestic Product at 3.2 percent in 2023. The sector is estimated to employ about two hundred thousand (200,000) people, the majority of whom are women at 70%,” the VP said.
CEDA CEO, Thabo Thamane, will be driving the initiative.
“The term ‘chema-chema’ loosely translates to ‘move with a sense of urgency,’ a principle deeply ingrained in the lifestyle of informal sector entrepreneurs. However, it extends beyond just them; it encapsulates the commitment of implementing agencies such as CEDA and LEA to deliver this programme swiftly and seamlessly to every Motswana across our nation, regardless of their geographical location,” he said.
“In line with the Economic Inclusion Act of 2021, which came into effect on April 20, 2022, my ministry has set up the Economic Inclusion Office, fully resourced by the Economic Inclusion Coordinator from March 2024. This aspect is crucial if we are to drive the growth of the informal sector because it helps the country deliver on key economic development indicators,” shared Minister Gare.
Meanwhile, members of the public who had flocked to the event, shared with The Monitor that they had heard about Chema Chema from parliamentary broadcasts but did not understand its operation. Most expressed interest in benefiting from the initiative but wanted to familiarise themselves with the guidelines to avoid “bad debt”.
Accessing Chema-Chema, a microfinance product, is now easier than ever with this simple fourstep process:
● Register with LEA as an Informal Sector Business (one day).
● Apply using a two-page application form with CEDA and receive approval within (two days).
● Attend LEA’s capacity-building session for (five days).
● Your loan will be disbursed within 24 hours.