The term is replacing “empowerment”, which was the original aim of starting CEDA and other citizen financial assistance schemes. Already, CEDA has stopped funding ventures in certain sectors because of over-trading. The CEDA annual report for 2004 says that a study conducted in 2003 revealed that saturated sectors are general dealers, butcheries, transport services including haulage, construction, restaurants, printing and publishing services, salons, bars and bottle stores. A walk around towns, cities and villages in Botswana would reveal that these businesses are run by Batswana with many of them facing stiff competition from chain stores. The study decided to suspend funding start-ups for these sectors. Some critics of government citizen empowerment drive believe that there are no protective measures in place to help Small and Medium Scale Enterprises (SMME) sponsored by CEDA.
Last year, finance minister Baledzi Gaolathe revealed that many CEDA-sponsored projects were facing challenges like competition from established businesses. He revealed that the competition is compounded by inadequate local markets. Globalisation and World Trade Organisation rules do not allow protection of local markets and Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) says that CEDA-funded small businesses need to re-strategise to compete. They must improve the quality of service, reliability, and make reasonable pricing, and hone their business acumen.
When CEDA started in 2001, it was flooded with many applications by locals. Many were funded ,by months later they collapsed because of competition, lack of market or poor management as Gaolathe has revealed. With the current state of affairs, the future of the CEDA and citizen empowerment is in doubt. Gaolathe said that since its inception, the agency has lost about 20 companies it sponsored. But it is not everyone, who believes that Botswana business environment is overtraded. Private consultant Boitshepo Bolele says that the argument by CEDA that it cannot fund new projects because they are over-traded does not hold water. Bolele runs a business consultancy that revives collapsed CEDA funded projects.
“The market cannot get full because we are a service industry. People buy products for various reasons. They (CEDA) ignore quality and service, which is a determinant of buyers’ decision,” she explains.
However, BOCCIM differs with Bolele saying that it is true there are sectors that are over-traded in Botswana. BOCCIM spokesman Tebogo Rapitsenyane says that when a sector is over-traded, revenue from it is highly fragmented and the result is little or no profit.
“There are, indeed, areas which are affected by over-trading. This has to be avoided by prospective entrepreneurs, first by engaging in market research. Starting a business should be taken as a serious step by looking at pros and cons of that particular business. One needs to apply a focused mind and project the survival of the businesses both in the short and long term,” says Rapitsenyane.
BOCCIM agrees with Bolele that there is some protection for small businesses in Botswana. These are found in reservation policy among others. But Bolele faults government in the implementation of the measures meant to protect local business and blames citizens for not fully utilising citizen empowerment schemes. In the CEDA annual report, the chief executive officer Dr Thapelo Matsheka says that they have found ways of assisting SMMEs. They have held talks with the Public Procurement and Asset Disposal Board (PPADB) to find ways to facilitate the participation of SMMEs in government tenders. CEDA has forged cooperation with the ministry of agriculture to assist with technical expertise in the agricultural sector. It has agreed with the Botswana Ostrich Company (BOC) to assist on ostrich projects and the National Food Technology Research (NFTRC) to assist with expertise on the food sector.
For Bolele, there is market in Botswana, but Batswana do not have the capacity to access it. She underscores the need for a new strategy to market the “Buy Botswana” initiative in an endeavour to re-brand the country. She says customer service in Botswana needs an overhaul. CEDA officials believe that the future of the agency rests with improving the vetting and selection of competencies. The CEDA annual report reveals the agency needs to develop competencies in the ability to screen and filter deals and to recognise talent.
