- UNDP flagship programme bolsters the sector
- Blue chip companies are listed on SDP as buyers
Botswana’s Small Medium and Micro Enterprises (SMMEs) have raked in P300 million from local suppliers listed on the flagship ATISA Suppliers Development Programme (SDP).
On Tuesday last week, UNDP and its partner stakeholders updated the media on the impact of the SDP since its induction. ATISA SDP is an economic development initiative that aims to bolster local SMMEs. It was pioneered three years ago by the United Nations Development Programme (UNDP). The Manager of ATISA SDP Project at UNDP, Boitumelo Mbaakanyi, says the SMMEs that enrolled on the programme collectively benefitted P300 million in profit.
“This a tremendous achievement and we are confident that SMMEs are empowered to do more in terms of increasing output levels and access to funding for purposes of expanding their markets,” she said this week. Mbaakanyi stated that the ATISA SDP programme exceeded its targets both in buyers and clients, adding that the initial target was to enroll 150 SMMEs but 175 have enrolled.
“The target at the inception of the SDP was to enlist five buyers but now we have 11 on board,” she said. “The buyers of SMME goods include Lucara, Debswana, Choppies and Botswana Ash.” Mbaakanyi noted that the SMME suppliers also realised an increase in their staff and profits and that there has been considerable improvement in the quality of products and services. According to the UNDP Resident Representative in Botswana, Dr Balazs Horvath, SMMEs are critical to the development and diversification of the economy and can revive the private sector.
Dr Horvath disclosed that the programme has so far partnered with seven financial institutions to fund SMMEs. The funding institutions provide preferential lending credit to beneficiaries of the programme. “We continue to monitor the relationships with banks to minimise unanticipated COVID-19 pandemic effects,” he said. “We have revised our strategy to be able to effectively implement the supplier development methodology during this trying times.” The SDP is a three to four-year programme that will see a number of local SMMEs participating. It started in countries like Nigeria and Ethiopia and in certain South American countries too.
The programme has different growth objectives such as connecting essential small scale producers to large markets locally and internationally, developing the productive capacity of SMMEs, and improving their competitiveness to become efficient and competitive suppliers to buyers. The Permanent Secretary in Ministry of Entrepreneurship, Joel Ramaphoi, said the government will do all what is necessary to accord the SMMEs support in an endeavour to fully unlock their growth potential. Ramaphoi noted that the ministry is keen to forge strategic relationships with critical entities like UNDP and the Botswana Chamber of Mines (BCM) in areas of economic development and SMME empowerment.
He said the SMMEs sector has the potential to grow the private sector’s contribution to GDP, hence it is encouraging for the economy when SMMEs emerge competitive from the SDP. “We anticipate our local SMMEs to be able to expand into the region now as large scale companies,” he said. “The SMMEs growth means job creation and economic diversification.” According to the UNDP, the ATISA SDP brings together three entities in a tripartite partnership that comprises buyers, suppliers and UNDP-certified consultants. The consultants help to develop an effective supply chain between the buyers and the suppliers.
