CEDA says Botswana’s emerging hemp industry must create bankable, citizen-owned businesses and local value addition, not simply new production opportunities.
GAZETTE REPORTER
Botswana must ensure that emerging industries such as industrial hemp create sustainable, citizen-owned businesses rather than simply opening new production opportunities, CEDA Board Chairperson Mbaakanyi Lenyatso has said.
Addressing the fifth and final day of the Botswana Hemp Impact Conference 2026 at Shasha Convention Centre in Tlokweng on Friday, Lenyatso said the development of an industrial hemp industry would require prepared entrepreneurs, accessible markets, clear regulation and bankable projects.
“An opportunity, however promising, does not become an industry simply because the market exists,” he said. “It becomes an industry when entrepreneurs are ready, regulation is clear, markets are accessible, projects are bankable, and capital can be deployed responsibly.”
Bankability test
Lenyatso said CEDA’s experience in development finance showed that finance alone was insufficient to create sustainable enterprises.
“Finance alone does not build sustainable enterprises,” he said, arguing that the approach should be “capacitation first, then finance.”
Entrepreneurs seeking to participate in an emerging industry, he said, must demonstrate an understanding of the sector, market viability, regulatory compliance, technical and managerial capacity, a credible business model and the ability to generate sufficient cash flows.
Bankability should not be reduced to collateral or a business plan.
“A bankable enterprise must demonstrate commercial viability, sound governance, credible management, access to markets, appropriate technology, regulatory compliance and the ability to manage risk,” Lenyatso said.
Beyond farming
For industrial hemp, Lenyatso said Botswana should look beyond primary production and identify opportunities across processing, manufacturing, packaging, logistics, research, technology, professional services and access to domestic and export markets.
“The greater developmental opportunity lies in local value addition,” he said.
Citizen stake
Lenyatso said citizen entrepreneurs should be positioned early in emerging value chains through capability development, technical expertise, market connections and appropriate financing.
He warned that finance, markets and capacity could not be treated separately.
“Finance without markets is risky. Markets without capacity exclude citizen businesses. Capacity without finance prevents businesses from scaling,” he said.
Rules first
Lenyatso also stressed that compliance should remain central as the sector develops, saying enthusiasm for emerging industries must not outpace the law.
“Governance, standards, environmental responsibility, traceability, financial management and regulatory compliance must therefore be embedded in businesses from the beginning,” he said.
He said CEDA was prepared to work with regulators, technical institutions, research organisations, industry players, commercial financiers and development partners, including through possible risk-sharing and blended-finance mechanisms.
Lenyatso said the ultimate measure of the sector should extend beyond hectares planted or licences issued. Botswana should instead assess how much value remains in the country, how many citizen businesses participate meaningfully, how many jobs are created and how much local processing and manufacturing takes place.
“Our task is not simply to finance the future. Our task is to help build businesses that are ready for that future,” Lenyatso said.