Established in 2022 as part of the rationalisation of Government and State-Owned Enterprises (SOEs), the Ministry of Entrepreneurship (MoE) was created to foster a cohesive and holistic ecosystem to support the growth of enterprises in Botswana.
Its formation reflects the government’s Reset Agenda, aimed at optimising the potential of Informal, Small, Micro, and Medium Enterprises (iSMMEs) in driving technological innovation and economic growth.
“The MoE is entrusted with the responsibility to nurture iSMMEs, to position them as the reliable delivery vehicle for Vision 2036 aspirations; to build strong linkages with large enterprises, to create much-needed jobs, create wealth for Batswana, define Botswana’s offerings to global trade, and build capacity for an export-led economy. The goal is to build a sustainable, robust ecosystem that will make high-income status a reality for the country,” explained Fenny Letshwiti, Chief Public Relations Officer for the Ministry of Entrepreneurship, in an interview with The Business Weekly & Review.
To fulfill this transformative mandate, the MoE is organised into several functional areas, including Corporate Services, Economic Inclusion, Entrepreneurial Culture and Mindset Change, Enterprise Development, Clusters and Value Chain Development, and Cooperatives Development. It also oversees key SOEs such as the Local Enterprise Authority (LEA), Citizen Entrepreneurial Development Agency (CEDA), Botswana Meat Commission (BMC), and Botswana Agricultural Marketing Board (BAMB).
“LEA and CEDA are critical enablers of the enterprise development agenda as they provide capacity building and affordable funding to iSMMEs in Botswana. Meanwhile, BMC and BAMB provide markets for agricultural produce for the benefit of Batswana,” Letshwiti said.
He said the MoE has identified several strategic sectors for iSMME growth, including agro-processing, manufacturing, tourism, financial services, and mineral beneficiation. It also encourages iSMMEs to focus on manufacturing construction materials to meet demand from new building projects and waste beneficiation through recycling. The Ministry also highlights opportunities in specialised fields such as intellectual property rights, franchising, product development, and international trade.
“There is also a need to leverage technology to scale up grain, fruits, and vegetable production,” he added.
The MoE is currently reviewing reservation schemes, licensing policies, and bylaws to create an enabling environment for iSMMEs to thrive. The Economic Inclusion Act of 2021 plays a critical role in establishing business linkages with iSMMEs and availing supply chain opportunities in both the public and private sectors.
“The Informal Sector Empowerment Initiatives is a reservation scheme that protects the informal sector from competition with well-established enterprises for products and services that traditionally belong to the sector,” Letshwiti elaborated. The government has also created a regulatory framework encouraging both public and private sector accounting officers to purchase goods and services from the informal sector.
Addressing the significant challenges faced by iSMMEs, such as market access and funding, Letshwiti revealed that efforts are ongoing to streamline export processes and assist businesses in expanding internationally. According to him, the MoE is responsible for ensuring that local enterprises produce goods and services that meet the quality and service standards needed to compete globally.
“An assessment is ongoing to document iSMMEs in Botswana, identify those ready for export, understand their needs, and enable the MoE to develop targeted interventions to empower them,” he disclosed.
This work is being done in collaboration with the Ministry of Trade and Industry by engaging with counterparts in export markets to understand applicable regulatory requirements and negotiate favorable terms for local businesses.
Regarding funding challenges, the MoE is reviewing models and available opportunities for different sectors and developing targeted interventions. These include initiatives such as the Chema Chema Fund and sector-specific funds like Temo Letlotlo and Thuo Letlotlo for agricultural enterprises.
A key part of the MoE’s strategy is empowering women and youth. Women-owned iSMMEs are a priority, with Letshwitinoting that the Economic Inclusion Act emphasises creating economic opportunities for targeted citizens, including women’s empowerment and diversity.
Economic opportunities for women are supported through programs such as the Wealth Creation Program, assistance for the Women in Business Association, CEDA loans, and business capacity-building initiatives through LEA.
“This support specifically targets women empowerment and other economic inclusion initiatives for women,” Letshwiti said. Youth entrepreneurship also remains a key focus, with CEDA, LEA, and the Youth Development Fund (YDF) providing tailored services to young business owners.
The MoE recognises that its goals cannot be achieved in isolation. As a result, it actively seeks partnerships with various stakeholders, including private sector companies, to solicit commitment, align efforts, and mobilise resources for iSMMEs. Public-private partnerships have led to the establishment of formal structures in the banking and mining sectors that support iSMME development.
“A good number of companies in the mining and banking sectors, now subscribed to the ideals of the Economic Inclusion Act, have set up formal structures to deliver Corporate Social Investment (CSI) through Supplier & Enterprise Development and progressive funding models to support sustainable iSMMEscapable of competing for supply chain opportunities in both the public and private sectors,” Letswhiti highlighted.
Thanks to these efforts, access to funding for citizens to acquire capital equipment has improved, allowing them to enter high-value, capital-intensive mining contracts. Citizen spending now exceeds 50 percent of total spending in both the private and public sectors.
Despite challenges, such as the suboptimal entrepreneurial culture in Botswana, the MoE remains committed to enhancing it and bringing it to the desired state in the country’s business ecosystem.
However, as a new ministry, the MoE faces the dual challenge of defining its business architecture while simultaneously delivering on its ambitious mandate. Letshwiti acknowledged that balancing the ministry’s structural design with executing its objectives presents competing but sequential priorities.
“The business architecture represents holistic, multidimensional views of capabilities, end-to-end value delivery, information and organisational structure, and the relationships among these views, strategies, products, policies, initiatives, and stakeholders,” he explained.
