The Chema Chema programme was bound to fail, according to the Permanent Secretary in the Ministry, who said it was not budgeted for, many beneficiaries lacked business training, and an additional P195 million was still needed to fund approved applicants
SESUPO RANTSIMAKO
The Chema Chema programme was rushed and bound to fail because it was not properly budgeted for, Permanent Secretary in the Ministry of Trade and Entrepreneurship Joel Duke Ramaphoi has told the Public Accounts Committee (PAC).
Appearing before the PAC this week, Ramaphoi said the programme had several loopholes, with beneficiaries receiving funds without being adequately capacitated or trained in the businesses they were venturing into.
‘SPOONFED’ PROGRAMME
Chema Chema was launched in April 2024 by the Botswana Democratic Party (BDP) regime with an initial capital allocation of P500 million, targeting informal businesses and entrepreneurs who struggled to access conventional financing. By July 2024, about 12,000 beneficiaries had received approximately P175 million under the programme.
However, Ramaphoi described the initiative as a poorly thought-out programme that effectively spoon-fed beneficiaries instead of equipping them with the skills and knowledge required to run sustainable businesses.
He said the programme was rolled out without adequate preparation, resulting in beneficiaries struggling to manage their businesses and repay the funds they had received.
FUNDING SHORTFALL
According to Ramaphoi, the lack of proper business training and capacity building among beneficiaries contributed to the challenges facing the programme.
He revealed that government still needs P195 million to finance beneficiaries who have already been approved under the programme but have yet to receive funding.
However, only P50 million is currently available in the programme’s account, leaving a significant funding shortfall and raising questions over whether government should continue financing the existing programme.
BENEFICIARIES STRUGGLING
Ramaphoi said beneficiaries were struggling to return the funds, further highlighting the challenges facing the programme.
He said the difficulties experienced by beneficiaries were among the issues that needed to be addressed as government considers the future of Chema Chema.
FUTURE UNCERTAIN
Ramaphoi said discussions were underway to establish whether government should proceed with funding the outstanding beneficiaries or whether they should wait for a new programme that is expected to replace Chema Chema.
NEW PROGRAMME LOOMS
The possibility of replacing Chema Chema with a new initiative could signal a major shift in government’s approach to supporting citizen entrepreneurship.
However, the unresolved issue of the P195 million required to fund already-approved beneficiaries remains a key challenge, particularly given that only P50 million is currently available in the programme’s account.