The substance of the workshop was focused: wealth creation is a long-term journey that requires patience, discipline, deliberate choices and embracing frugality. Staff Writer GOSEGO MOTSUMI reports
The Absa Women in Business workshop series continued to inspire and empower women entrepreneurs at its second session in Gaborone last week.
Themed “Understanding Finance for Business,” the workshop equipped women from industries such as farming, fashion and manufacturing, as well as owners of small and medium enterprises (SMEs) with critical financial skills needed for sustainable growth.
This initiative is part of Absa’s commitment to advancing women-led businesses through targeted education and support.
Daily income and expenses
Neo Pifelo of Absa shed light on the essential topic of cash flow management, emphasising the three main cash sources and uses: operations, investments, and financing.
She explained that operational cash flow involves daily income and expenses, while investing cash flow focuses on acquiring assets like equipment or property to enhance profitability. Financing, on the other hand, includes loans, equity and grants.
Highlighting the importance of cash conversion cycles, Pifelo noted that profitability alone is not enough; funds tied up in lengthy cycles can stifle business operations. Her message was clear: managing cash efficiently is pivotal for sustained profitability.
Effective debt management
Absa’s Chief Credit Officer, Maungo Mokotedi, presented strategies for effective debt management in SMEs. He underscored the need for businesses to adapt to emerging trends like digitisation, supply chain opportunities, and evolving regulatory frameworks.
Mokotedi emphasised that a sustainable business case requires financial discipline, a clear track record, and a stable input-output model.
Living within one’s means
Lesley Bradley of Absa shared practical insights into wealth creation. Her advice focused on living within one’s means, saving consistently and avoiding debt for consumption purposes.
She outlined key principles like paying yourself first by prioritising savings, spending less than you earn and creating a household budget, as well as embracing frugality and avoiding unnecessary luxury purchases.
Bradley’s roadmap included practical tips like investing in affordable property, maintaining a six-month emergency fund, and viewing savings and investments as separate goals.
Informed financial decisions
Her message was focused: wealth is a long-term journey requiring patience, discipline, and deliberate choices.
The workshop reinforced Absa’s mission of empowering women entrepreneurs with the knowledge and tools needed to thrive in a competitive landscape.
By addressing topics such as cash flow management, debt sustainability, and wealth creation, the session equipped participants to make informed financial decisions that will enhance their business operations and personal finances.