Connect with us
Advertisement

P500 million CEDA record marks self-sustenance path

Citizen Entrepreneurial Development Agency (CEDA) Chief Executive Officer (CEO) Thabo Thamane has said stringent measures introduced by the agency have begun to pay dividends, as the institution collected a record P515 million in last financial year.

The measures are part of Thamane’s ambition to transform the 19 year old financial development institution into a self-sustaining agency.  Thamane expects CEDA to be fully self-sustaining within the next 6 years, following a Memorandum of Understanding (MoU) entered into with Malaysian based SME Bank, a state owned financial development institution.

“We collected P515 million, that’s more than half a billion. This was the first time in the 19 year history of the institution that we have collected that much. Our target was P440 million and we went beyond our target,” Thamane told WeekendPost this week. Thamane attributes this success to prioritising collection rate when he took over the reins, a feat achieved amid strenuous effort.

“When I was appointed, there was a general laxity from people that, because it was CEDA a quasi-government [institution] people did not want to pay their loans,” he said. “People were not forthcoming because of that mentality, so we had to curb the wheel, and we seriously did. It changed the mind set of the people, they now know if they owe CEDA, they have to pay because we keep them on their toes. We needed that.”The CEDA chief said the reforms introduced proved to be unpopular, but he was adamant that it was a necessary devil.

“People were crying and politicians were complaining that there was ‘In a matter between’ in every newspaper involving CEDA and their clients. I told them I had to and every relationship has to end at some stage. Either you pay the loan or we go to court.  We developed a collection team dedicated toward phoning people,” he said. “Government gives us about P250 million as subvention, and we raise P600 million internally. The government subvention we don’t use it for rent or other operational costs, it goes to financing projects.”

PROJECT FACILITATION FUND AS GAME CHANGER

CEDA in partnership with Local Enterprise Authority (LEA) recently introduced Project Facilitation Fund, which is a pre-project funding targeting high impact projects with strong focus on agro-processing, manufacturing and tourism. “The Project Facilitation Fund was the minister [Bogolo Kenewendo] vision to develop the SME through her apex model. CEDA falls in the SME apex. We realised that there are certain legal and regulatory requirements, as much as they are good and necessary legal requirements, that have an impact on SMEs,” he said.

“This is so because SMEs are now unable to access capital, as a result of that, they cannot access the market. Consequently people just stay home with dreams, and they cannot do anything. This is what usually lead to people being frustrated and some even accusing CEDA of selling their ideas when somebody succeeds in the same business they wanted to do.”

Thamane noted that Project Facilitation Fund will be in the form money accessed in order to finance certain pre-requisite requirements for certain projects such as  Environmental Impact Assessment (EIA), product testing and processing certification, diligence, valuation reports, soil and water test, borehole test, structural reports among others. Though the initiative can accommodate other projects in exceptional cases, the focus is in high impact projects in agro-processing, manufacturing and tourism.

“If you look at these sectors Batswana are spectators. We have the data that shows how many Batswana are into these sectors. We as CEDA deliberately said we will focus on these sectors,” Thamane said. According to Thamane, CEDA is doing a manufacturing study, which will inform the agency on opportunities avail and what to fund. He said the study will assess the import bill and also offer suggestion on the low hanging fruits.

“We want to move to a situation whereby we direct people where to venture because we are the owners of the funds and we can dictate where the funds go. We want people to use the entire value chain of primary production of goods. There has to be on who grows, then one who processes and finally the one who sells to market,” he said. “One the biggest problems facing SMEs is that, one would want to do everything in the entire value chain. It affects efficiencies. “The next phase, we need to digitize our platforms so that people do not come to our office, they just communicate via our apps. Very soon we will unveil some of those apps. We want to leverage on technology as delivery channel.”

MERGING OF PUBLIC ENTREPRISES  

Ministry of Investment, Trade and Industry last year announced plans to review public enterprises, a process which has various implication which may include possible merging of quasi-government funding institutions such as National Development Bank (NDB), Botswana Development Corporation and CEDA among others.

“It’s a pity that people do not understand development finance. It is a very intruding landscape. You cannot mix micro-business with large businesses because at the end of the day we are going to focus more on large business at the expense of small business or then you focus on small businesses then you forget the large businesses,” he said.

Thamane is of the view that there is a risk of forgetting certain mandates if such was to happen. “I know what CEDA does, I have been here for the past 16 years; I know what LEA does, and I know what other financiers do. What is very critical is that we must be every carefully when making this analysis of merging public enterprises because their mandates were very specific,” he warned.

“It is one thing as for an institution that is not performing as per its mandate. If it does not perform, you do not just say you merge it. You basically say; why is it not performing? Is it the people or is it the mandate? So that is the starting point; If it is the people, you then put the right people so that they can make it perform; if it is the mandate, then review the mandate and then merge it with other institutions.” Thamane contended that the last thing that government needs is to create a monster of an institution, because the bigger the institution, the bigger the process.

APPOINTMENT AS CHAIRMAN OF AADFI

Thamane was elected the Chairman of the Association of African Development Finance Institution (AADFI) at Annual General Assembly held in Malabo Equatorial Guinea in June this year AADFI currently has 82-member institutions and is headquartered in Abidjan, Ivory Coast.
The association is a member of the World Federation of Development Finance Institutions and has observer status at the World Bank. Thamane takes over from the CEO of the Development Bank of South Africa.

“It is much easier for my own country to get capacity building and technical assistance. I can tell you this capacity building and technical assistance have been going to other countries because they attended these events,” said Thamane on the importance of the position.
“’In Botswana we do not attend these events because sometimes people believe it is a waste of resources. Yet we want good things to come to us, but we cannot expect good things to come to us, without being part of these events.”

As the leader of AADFI, Thamane is expected to led a delegation to Frankfurt on green climate fund financing. “It is something I have been advocating for to say, let us have a green fund, and let us have projects that are eco-friendly and encourage them.”

Continue Reading

News

Understanding the US Electoral College and key election issues 

28th October 2020
Mark J Rozell

The United States (US) will on the 3rd of November 2020 chose between incumbent Donald Trump of the Republicans and former Vice President Joe Biden of the Democrats amid the coronavirus pandemics, which has affected how voting is conducted in the world’s biggest economy.

Trump (74) seeks re-election after trouncing Hillary Clinton in 2016, while Biden (77) is going for his first shot as Democratic nominee after previous unsuccessful spells.

US Presidents mostly succeed in their re-election bid, but there have been nine individuals who failed to garner a second term mandate, the latest being George W H. Bush, a Republican who served as the 41st US President between 1989 and 1993.

Dr Mark Rozell, a Dean of  the School of Policy and Government at George Mason University  in  Arlington, Virginia describes the complex US electoral system that will deliver the winner at the 3rd November elections.

“The founders of our Republic de-centralised  authority  significantly  in  creating  our  constitutional  system,  which  means that  they  gave  an  enormous  amount  of  independent  power  and  authority  to  State  and  local governments,” Dr Rozell told international media on Elections 2020 Virtual Reporting Tour.

Unlike  parliamentary  democracies, like Botswana the  United  States  does  not  have  all  of  the  national government elected in one year. They do not have what is commonly called mandate elections where  the  entire  federal  government  is  elected  all  in  one  election  cycle  giving  a  “mandate”  to  a particular political party to lead, and instead US have what are called staggered elections, elections over time.

The two house Congress, members of the House of Representatives have two-year long terms of office. Every two years the entire House of Representatives is up for re-election, but senators  serve  for  six  years  and  one  third  of  the  Senate is elected every  two  years.

For this election cycle, US citizens will be electing the President and Vice

President, the entire House of Representatives and one third of the open or contested seats in the Senate, whereas two thirds are still fulfilling the remainder of their terms beyond this year.

An  important  facet  of  US electoral  system  to  understand  given  the  federalism  nature  of  the republic, the US elect presidents State by State, therefore they do not have a national popular vote for the presidency.

“We have a national popular vote total that says that Hillary Clinton got three million more votes than Donald Trump or in Year 2000 that Al Gore got a half million more votes than George W. Bush, but we have what is called a State by State winner takes all system where each State  is  assigned  a  number  of  electors  to  our  Electoral  College  and  the  candidate  who  wins  the popular vote within each State takes 100 percent of the electors to the Electoral College,” explained Dr Rozell.

“And that is why mathematically, it is possible for someone to win the popular vote but lose the presidency.”

Dr Rozell indicated that in 2016, Hillary Clinton won very large popular majorities in some big population States like California, but the system allows a candidate to only have to  win  a  State  by  one  vote  to  win  a  100 percent of  its  electors,  the  margin  does  not  matter.

“Donald  Trump  won  many  more  States  by  smaller  margins,  hence  he  got  an  Electoral  College majority.”

Another interesting features by the way of US constitutional system, according to Dr Rozell, but extremely rare, is what is called the faithless elector.

“That’s the elector to the Electoral College who says, ‘I’m not going to vote the popular vote in my State, I think my State made a bad decision and I’m going  to  break  with  the  popular  vote,’’ Dr Rozell said.

“That’s constitutionally a very complicated matter in our federalism system because although the federal constitution says electors may exercise discretion, most States have passed State laws making it illegal for any elector to the Electoral College to break faith with the popular vote of that State, it is a criminal act that can be penalized if one is to do that. And we just had an important Supreme Court case that upheld the right of the states to impose and to enforce this restriction”

There are 538 electors at the Electoral College, 270 is the magic number, the candidate who gets 270 or more becomes President of the United States.

If however there are more candidates, and  this  happens  extremely  rarely,  and  a  third  candidate  got  some electors  to  the  Electoral  College  denying  the  two  major  party  candidates,  either  one  getting  a majority, nobody gets 270 or more, then the election goes to the House of Representatives and the House of Representatives votes among the top three vote getters as to who should be the next President.

“You’d have to go back to the early 19th century to have such a scenario, and that’s not going to happen this year unless there is a statistical oddity, which would be a perfect statistical tie of 269 to 269 which could happen but you can just imagine how incredibly unlikely that is,” stated Dr Rozell.

BLUE STATES vs RED STATES

Since the 2000 United States presidential election, red states and blue states have referred to states of the United States whose voters predominantly choose either the Republican Party (red) or Democratic Party (blue) presidential candidates.

Many  states  have  populations  that  are  so  heavily  concentrated  in  the  Democratic party or the Republican party that there is really no competition in those states.

California is a heavily Democratic State, so is New York and Maryland. It is given that Joe Biden will win those states. Meanwhile Texas, Florida and Alabama are republicans. So, the candidates will spent no time campaigning in those states because it is already a given.

However there are swing  states, where  there is a competition between about five and 10 states total in each election cycle that make a difference, and that is where the candidates end up spending almost all of their time.

“So  it  ends  up  making  a  national  contest  for  the  presidency  actually  look  like  several  state-wide contests with candidates spending a lot of time talking about State and local issues in those parts of the country,” said Dr Rozell.

Continue Reading

News

Masisi to make things right with Dangote

26th October 2020

High Commissioner of the Federal Government of Nigeria to Botswana, His Excellency Umar Zainab Salisu, has challenged President Dr Mokgweetsi Masisi to move swiftly and lobby Africa’s richest man, Nigerian Billionaire, Aliko Dangote to invest in Botswana.

Speaking during a meeting with President Masisi at Office of President on Thursday Zainab Salisu said Dangote has expressed massive interest in setting up billion dollar industries in Botswana.  “We have a lot of investors who wish to come and invest in Botswana , when we look at Botswana we don’t see Botswana itself , but we are lured by its geographic location , being in the centre of Southern Africa presents a good opportunity for strategic penetration into other markets of the region,” said Salisu.

This content is locked

Login To Unlock The Content!

Continue Reading

News

Dow wants GBV culprits isolated

26th October 2020
Unity Dow

As murder cases and violent incidents involving couples and or lovers continue to be recorded daily, Specially Elected Member of Parliament, Dr Unity Dow has called for more funding of non-governmental organizations and accelerated action from government to come up with laws that could inhibit would-be perpetrators of crimes related to Gender Based Violence (GBV).

Just after Dr Dow had deposited her views on this subject with this reporter, a young man in Molepolole opened fire on a married woman he was having an affair with; and ended her life instantly. While it is this heinous cases that get projected to the public space, the former minister argues that the secrecy culture is keeping other real GBV cases under wraps in many spaces in the country.

The former Minister of Foreign Affairs and International Cooperation said there is GBV all the time in all kinds of places. “We have become accustomed to stories of rapes, marital rapes, defilement of children, beatings and psychological violence and even killings,” she said.

Gender-based violence is a phenomenon deeply rooted in gender inequality, Dow is worried that there is absolutely no social punishment for perpetrators; they will continue to have the same friends, jobs, wives, homes, as before. Yet another factor, she said, is that there is little or no “justice” for victims of GBV.

The renowned activist said justice for GBV victims is not just the jailing of the perpetrator. “Justice for victims means an agile, victim-friendly, accessible (time, money and procedures) and restorative justice system.”

Asked what could be leading to a spike in Gender Based Violence cases or incidents, she observed that there is no one factor to which this spike can be attributed. “The most obvious factor is stress as a result of economic distress and or poverty. Poverty makes one vulnerable and open to compromises that they would otherwise not make. For perpetrators with anger management issues, economic stress leads to lashing out to those closest to them. Another factor is the disintegration of families and family values,” she opined.

According to Dow, no government anywhere in the world is doing enough, period. “We know the places and spaces where women and girls are unsafe. We know the challenges they face in their attempts to exit those spaces and places.” The former Judge of the High Court said GBV undermines the health, dignity, security and autonomy of its victims, yet it remains shrouded in the culture of silence.

Asked what could be done to arrest GBV cases, Dow said it is critical to involve and fund civil society organizations. She observed that much of the progress done in the area of women’s human rights was during the time when Botswana had strong and funded civil society organizations.

“The funding dried up when Botswana was declared a middle-income country but unfortunately external funding was not replaced by local funding,” she acknowledged.

Further Dow said relevant government institutions must be funded and strengthened.

“Thirdly, create a society in which it is not okay to humiliate, rape, beat or kill women. You create this by responding to GBV the same way we have responded to livestock theft. We need to create agile mechanisms that hear cases quickly and allow for the removal of suspected perpetrators from their homes, work places, boards, committees, etc.”

The former Minister said the much anticipated Inter-Ministerial Task Force on Gender Based Violence will have its work cut out for it. According to Dow, GBV is not just a justice issue, it’s not just a gender issue, but rather an issue that cuts across health, education, labour, economic, housing and politics. “As long as any one believes it is someone else’s problem, we will all have the problem,” she said.

In her view, Dow said every work, educational and other place must have a GBV Policy and/or Code of Conduct. “It is important that we acknowledge that the majority of men are law-abiding. The problem is their silence, in the face of injustice,” she observed.

Continue Reading
Do NOT follow this link or you will be banned from the site!