The Citizen Entrepreneurial Development Agency (CEDA) is confronting rising loan defaults in the manufacturing sector, prompting a reassessment of its risk appetite and intervention strategy in the SPEDU region.
Out of 104 manufacturing projects funded to the tune of P158 million, 73 percent are now either in arrears or involved in litigation, according to Caretaker CEO Khalala Mokefane.
“We have 26 projects currently facing challenges, including difficulties in market penetration and sourcing raw materials,” he told business owners in Selebi Phikwe.
The economic fallout from the BCL mine closure, coupled with post-pandemic disruptions and a slowdown in government spending, has left manufacturers in a precarious position.
“We are aware that many of our businesses are feeling the strain,” Mokefane admitted, warning that up to 300 jobs could be lost if corrective measures fail.
His candid assessment highlights structural weaknesses in Botswana’s industrial financing framework, where undercapitalisation and limited cash flow persist despite generous state support.
“These challenges may be unique or common—ranging from undercapitalisation by financiers to market and economic downturns,” he explained.
To mitigate risks, CEDA is introducing flexible repayment terms and providing an additional P25 million to viable businesses, while advisory teams assist clients with operational reviews and recovery planning.
“True entrepreneurship is about overcoming obstacles with tenacity and purpose,” Mokefane said.
Minister for State President Moeti Mohwasa endorsed the renewed focus on manufacturing, describing the engagement forum as “a milestone in the revitalisation drive of Selebi Phikwe.” He emphasised that the government expects CEDA and related agencies to craft “practical and progressive solutions unique to this region.”
Mokefane’s remarks indicate a broader philosophical shift within CEDA, moving from strict credit administration toward strategic partnerships and ecosystem development.
The stakes are high. As Botswana pursues private sector-led growth under the 12th National Development Plan, the performance of CEDA’s manufacturing clients in Selebi Phikwe will serve as a key indicator of whether citizen entrepreneurship can genuinely underpin national industrialisation.
