Almost all businesses that applied for the Chema Chema Fund, a P500 million Fund, that started around May 2024, are informal businesses, according to the latest Statistics on the fund.
Data shows that at least 97 percent of the registered businesses are informal, indicating a substantial segment of the economy that operates outside the formal regulatory framework. The remaining 3 percent registered for funding through this programme is formal.
The objective of the Chema Chema Fund is to facilitate new and existing informal businesses through inclusive financing and development by providing affordable short-term loans to citizen informal businesses, according to government records.
Data provided by the Local Enterprise Authority (LEA) shows that seven out of 10 businesses registered under Chema Chema are newly formed companies, while the remainder is made up of existing small and medium enterprises. LEA said the overwhelming number of applicants for Chema Chema by newly formed businesses reflects Chema Chema’s role in fostering new ventures.
The data also sheds some light on the age demographics of business ownership with young people aged between 18 and 35 representing four out of 10 of applicants.
The data which offers significant insights into the distribution and dynamics of business development across various sectors, business types, and demographics shows that adults make up to a fifth of the registrations, while a small amount of senior citizens, those aged above the age of 60 represent only three percent.
The LEA statistics include data on applications processed, approvals, and training, underscores a robust engagement with the program. LEA says the services sector dominates the Chema Chema registration.
This is followed by the agriculture sector, which represents at least two out of every 10 applications or 20 percent. LEA said the manufacturing sector followed at around 15 percent, while the tourism sector accounted for only five percent of Chema Chema registration or applicants.
LEA data further shows that Chema Chema had an approval rate of over 90 percent. Data shows that out of the 112,106 processed business applications, 92,130 have been approved, allowing about 55,024 entrepreneurs to undergo LEA training, a critical component of the Chema Chema initiative aimed at equipping entrepreneurs with the necessary skills.
The total number of registered individuals stands at 114,593, reflecting widespread engagement with the program.
The latest Chema Chema registration statistics paint a picture of a vibrant and diverse business landscape, with strong participation from startups, a dominant services sector, and significant engagement from both youth and adults.
