Citizen Entrepreneurial Development Agency (CEDA) Chief Executive Officer (CEDA), Thabo Thamane has revealed that his organisation is now working on becoming a fully self-sustaining business after a period of relative success under his stewardship, which has seen the institution being able to self-stain operationally.
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. “If SME Bank can add so much value in the economy of Malaysia, so can CEDA. We have got similar mandates but them they are self-sustaining, they do not get funding from government and of course they are much older than us,” Thamane told Weekend Post this week.
“They do come here to look at how we do our business and then advise us on where to improve.” Thamane believes CEDA is not far from achieving its desired feat, even going to the extent of affirming that the institution can even continue to operate even if it were not to get subvention from government, albeit with a limited budget.
“Today as we speak, our salaries, our vehicles, anything that we do as a cost to us we do not pay it from government money. When we receive government subvention all goes to the projects,” Thamane said. “That was the first step, operationally, let us pay our own costs, we achieved it. We even supplement government funding.”CEDA is currently reviewing its guidelines to look at their operational model after being given the green light by Ministry of Investment, Trade and Industry.
“We need to change our model such that we become commercial orientated institution but at the same time being a blend between commercial and developmental such that the commercial arm supplement the development arm,” he argued. When Thamane took over the reign at CEDA, his major focus as a priority was ensuring that he improves the organisation’s collections, a feat which has been achieved amid strenuous effort.
“It was our priority when I took over. I said, you know what, we must ramp up collections,” Thamane said. “Secondly we had an entitlement mentality, people said this is government and will get CEDA loans to finances things like buying vehicles, and there was that culture generally and we had to work around transforming CEDA.” Thamane indicated that ultimately, CEDA had to introduce drastic measures, tightened the processes, but ensured that their default position remain in favour of citizens.
“We formed a dedicated collections team, focusing solely on collections, we improved our collections techniques and it paid dividends because our collections started shooting up. It showed that people we not prioritising CEDA,” observed Thamane. “They paid others first and CEDA last just because we are government owned. And that still exist today but it is now manageable.’’
As part of his transformation, Thamane also formed the credit department, which focused on assessing applications and ensuring that applications fit into the institutions’ guidelines. However, there was a problem with that. As CEDA introduced these business operations, customers started complaining of the turn-around time for assessments of applications, forcing the organisation to create customer advisor unit, which then ensured only applications which meets all necessary requirements pass through for assessment.
Owing to many start-ups funded by CEDA failing to make the grade, Thamane introduced the rehabilitation department, which is focusing on offering diagnosis and prognosis on CEDA funded businesses which are not doing well. This financial year, Government offered CEDA just over P270 million as subvention, but the institution had a staggering P578 million budget for loan disbursement, a phenomenon, that Thamane attributes to strong collection mechanism that CEDA has put in place.
According to Thamane, CEDA’s success has been backed by various factors, including creating a conducive environment for employees as well as training programme. He narrates that each member staff is given an opportunity to advance themselves career wise. An archetypal example is former tea lady, who now works as Accounts Executive at CEDA after being schooled by the institution to acquire an ATT qualification.
However, such investment in staff also has its own downside, with the commercial banks plucking from CEDA staff to boost their ranks. “That is the biggest problem that I have as an institution, because I belong to government I cannot compete with commercial banks in terms of salaries, but I just have to create a conducive environment,” he said.
“It is impossible to compete with commercial banks and we are worried that our employees are being poached by other organisations. Though we are happy for them as it is part of growth on their part and they add value in other part of the society; some of them sometimes even comeback because though we cannot pay more than commercial banks, they like the environment here,” he said.
BOOSTING CEDA BALANCE SHEET
CEDA is currently acquiring land country wide, with Kanye, Palapye, Maun and Kasane already identified for land allocation. “As you become sustainable, we must also improve your balance sheet such that if you want to borrow in the money market, you must be able to show a strong balance sheet. It cannot be just loans without any other assets,” he contended.
ON MERGING OF PUBLIC ENTEPRISES WITH OVERALPPING MANDATES
Thamane has offered his opinion on the anticipated reviewing and possible merging of quasi-government funding institutions such as National Development Bank (NDB), Botswana Development Corporation and CEDA among others. “I know what CEDA does, I have been here for the past 15 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. “We welcome this idea of a possible review of the institutions, and where possible some will be merged. If they decide CEDA merges with other institution, I will take it, “he said.
While there is no hard-and-fast rule in politics, former Molepolole North Member of Parliament, Mohamed Khan says populism acts in the body politic have forced him to quit active partisan politics. He brands this ancient ascription of politics as fake and says it lowers the moral compass of the society.
Khan who finally tasted political victory in the 2014 elections after numerous failed attempts, has decided to leave the ‘dirty game’, and on his way out he characteristically lashed at the current political leaders; including his own party president, Advocate Duma Boko. “I arrived at this decision because I have noticed that there are no genuine politics and politicians. The current leaders, Boko and President Dr Mokgweetsi Masisi are fake politicians who are just practicing populist politics to feed their egos,” he said.
Former Botswana Democratic Party (BDP) parliamentary hopeful, Lawrence Ookeditse has rejected the idea of taking up a crucial role in the Botswana Patriotic Front (BPF) Central Committee following his arrival in the party this week. According to sources close to development, BPF power brokers are coaxing Ookeditse to take up the secretary general position, left vacant by death of Roseline Panzirah-Matshome in November 2020.
Ookeditse’s arrival at BPF is projected to cause conflicts, as some believe they are being overlooked, in favour of a new arrival. The former ruling party strategist has however ruled out the possibility of serving in the party central committee as secretary general, and committed that he will turn down the overture if availed to him by party leadership.
Ookeditse, nevertheless, has indicated that if offered another opportunity to serve in a different capacity, he will gladly accept. “I still need to learn the party, how it functions and all its structures; I must be guided, but given any responsibility I will serve the party as long as it is not the SG position.”
“I joined the BPF with a clear conscious, to further advance my voice and the interests of the constituents of Nata/Gweta which I believe the BDP is no longer capable to execute.” Ookeditse speaks of abject poverty in his constituency and prevalent unemployment among the youth, issues he hopes his new home will prioritise.
He dismissed further allegations that he resigned from the BDP because he was not rewarded for his efforts towards the 2019 general elections. After losing in the BDP primaries in 2018, Ookeditse said, he was offered a job in government but declined to take the post due to his political ambitions. Ookeditse stated that he rejected the offer because, working for government clashed with his political journey.
He insists there are many activists who are more deserving than him; he could have chosen to take up the opportunity that was before him but his conscious for the entire populace’s wellbeing held him back. Ookeditse said there many people in the party who also contributed towards party success, asserting that he only left the BDP because he was concerned about the greater good of the majority not individualism purposes.
According to observers, Ookeditse has been enticed by the prospects of contesting Nata/Gweta constituency in the 2024 general election, following the party’s impressive performance in the last general elections. Nata/Gweta which is a traditional BDP stronghold saw its numbers shrinking to a margin of 1568. BDP represented by Polson Majaga garnered 4754, while BPF which had fielded Joe Linga received 3186 with UDC coming a distant with 1442 votes.
There are reports that Linga will pave way for Ookeditse to contest the constituency in 2024 and the latter is upbeat about the prospects of being elected to parliament. Despite Ookeditse dismissing reports that he is eying the secretary general position, insiders argue that the position will be availed to him nevertheless.
Alternative favourite for the position is Vuyo Notha who is the party Deputy Secretary General. Notha has since assumed duties of the secretariat office on the interim basis. BPF politburo is expected to meet on 25th of January 2020, where the vacancy will be filled.
Botswana Democratic Party (BDP) big wigs have decided to cancel a retreat with the party legislators this weekend owing to increasing numbers of Covid-19 cases. The meeting was billed for this weekend at a place that was to be confirmed, however a communique from the party this past Tuesday reversed the highly anticipated meeting.
“We received a communication this week that the meeting will not go as planned because of rapid spread of Covid-19,” one member of the party Central Committee confirmed to this publication. The gathering was to follow the first of its kind held late last year at party Treasurer Satar Dada’s place.