Business

Poor business plans overwhelm CEDA

Chakalisa Dube | Tuesday November 30, 2021 19:11

In need of a boost: More CEDA funding would boost the Francistown economy which has struggled since the closure of Tati Nickel Mine in 2016 PIC KEOAGILE BONANG
 
In need of a boost: More CEDA funding would boost the Francistown economy which has struggled since the closure of Tati Nickel Mine in 2016 PIC KEOAGILE BONANG

Francistown mayor, Godisang Radisigo told councillors that the problem has been traced back to an over-reliance on consultants by those seeking funding. What is even more worrying to Radisigo is that the consultants charge exorbitant fees for their services.

“With regards to the poor proposals, the agency will continue to collaborate with Local Enterprise Authority (LEA) and Tokafala to assist business entities with the preparation of their business proposals. “There is also continuous identification of training and mentoring needs during project appraisals and mentoring, with a view to upskilling clients,” Radisigo said.

During the current financial year LEA gave business plans to Youth Development Fund (YDF) applications valued at around P11.9 million, 18 CEDA applications valued at P47.1 million and National Development Bank applications valued at P779, 810.59. Of the business plans submitted 133 were in agriculture, 27 in manufacturing and 47 under services.

CEDA has often been accused of stringent requirements by those seeking business funding from the organisation. In response, CEDA has often raised concerns about poorly done proposals, saying this is why some potential beneficiaries are often rejected. The agency has often pleaded with individuals to take ownership of their business proposals instead of relying too much on consultants.

Meanwhile, the mayor also told the council that for the current financial year a total of 170 YDF applications for funding were received by the Ministry of Youth Empowerment, Sport and Culture Development. He added that after adjudication of proposals was done recently, 39 proposals were awarded funding. The proposals were from sectors such as manufacturing, services, and agriculture, among others.