The informal sector has expressed optimism regarding the newly proposed Chema Chema Fund, announced during the budget speech.
Geared towards transforming the informal sector and fostering more employment opportunities, the fund has garnered favorable responses from various quarters.
Mpho Matoteng, Secretary General of the Botswana Informal Sector Association (BOISA), hailed the potential of the fund in enhancing the development and growth of the informal economy. She emphasised the importance of capacity building for informal business owners, including skills like financial literacy, product development, and marketing. BOISA, representing a diverse range of informal economy workers, sees the fund as a crucial step towards addressing the financial access challenges faced by the sector.
Mototeng underscored the significance of the Chema Chema initiative, citing its alignment with longstanding appeals from the informal sector for recognition and financial inclusivity. While acknowledging the need for further clarity on fund accessibility and operational details, Matoteng emphasised the importance of celebrating and appreciating the government’s commitment to an inclusive economy.
Echoing Matoteng’s sentiments, informal businesses on the ground expressed optimism about the fund’s potential to support their growth and development. Dineo Letlogetswe, operating a food stall near Game City Mall, sees the fund as a potential opportunity to transition to a safer and more permanent operating space. Similarly, Connie Mosimanegape, a vegetable vendor in the Gaborone International Commerce Park area, hopes the fund will enable her to expand her business strategically.
The Chema Chema Fund, with an initial capital injection of P200 million, aims to catalyse the informal sector’s role in economic development and job creation. In response to the budget speech, President Mokgweetsi Masisi hinted at a possible increase to the fund’s budget to at least P500 million. Recognising the economic challenges exacerbated by the COVID-19 pandemic, Masisi stressed the need for robust support for the informal sector and proposed complementary initiatives like Thuo Letlotlo to bolster agricultural production and national food security.
Furthermore, Masisi outlined plans for livestock production enhancement, including abattoir development and exploration of external markets. The Selebi-Phikwe Citrus Project, hailed as a significant endeavor, aims to produce 70,000 tons of citrus fruits annually for local consumption and export, while also exploring value chain development opportunities.
The proposed budget increases reflect the government’s commitment to mitigating the impacts of the pandemic and accelerating stalled developments across various sectors.
