LEA eyes CEDA loan to fund small business growth

Lesedi Mkhutshwa | Monday December 15, 2025 06:00

Seeking synergies: Ntsima says government is supportive of more partnerships in sectors such as SMMEs and the informal sector PIC: PHATSIMO KAPENG

Launching the Kutlwano Market Stalls here, Ntsima stated that the move aims to provide a seamless support experience, with LEA offering end-to-end assistance, from proposal writing to navigating the funding process.

This will effectively create a 'one-stop shop' for entrepreneurs, he added.

Ntsima emphasised that LEA will continue to empower the informal sector through targeted training, capacity building, and skills development initiatives, equipping businesses with the tools they need to thrive.

“This includes business management, financial literacy, and digital skills training, enabling entrepreneurs to take their ventures to the next level,” he said.

Furthermore, Ntsima indicated that LEA will persist in advocating for regulatory reforms to simplify business registration and promote a more conducive business environment, ultimately enhancing market access for the sector.

'We are committed to creating an ecosystem that supports the growth and success of small businesses,' he said.

He also highlighted the organisation’s dedication to driving economic growth and development.

Earlier, Ntsima stated that the International Labour Organisation estimates that over 60% of the world’s workforce—which is about two billion people—earn their living from the informal economy, with 80% of enterprises operating in the informal economy.

Figures extracted from the International Labour Organisation and UN reports indicate that regional shares of informal sector employment vary sharply.

Ntsima mentioned that Africa has the highest employment in the informal sector at about 85.8%. Furthermore, he shared that the rise of the informal sector, which continues to be pervasive in most countries, is often symptomatic of the prevalence of poverty, which has triggered 'survivalist entrepreneurial instincts' amidst severe decent work deficits.

“In noting the organic duality of both the formal and informal sectors in most economies, it remains both a noble and strategic priority to provide a conducive environment for the operation and development of the informal sector,” he said.

Additionally, the minister stressed the need to provide supportive incentive structures and services, such as 'patient capital', 'scalable and bespoke infrastructure', and 'preferential market access', amongst others. He said this remains imperative for the informal sector’s resilience, growth and formalisation in the medium term.

Ntsima also revealed that LEA, as part of its strategy for scaling up the growth of the Small, Medium and Micro Enterprise (SMME) ecosystem, plans to graduate informal businesses in its portfolio. The agency intends to 'handhold' them to formalisation in order to integrate the sector into the mainstream economy.

“Providing infrastructure such as the one we’re about to launch today is an initiative that supports this endeavour, whilst enhancing decent work will also improve productivity.

“These enterprises will be facilitated to operate optimally by insulating them from the vagaries of weather conditions, precluding the arduous daily task of transporting their goods between their homes and places of operation and easing the lack of basic amenities enjoyed by formal businesses,” he added.

The minister further hailed the synergy between LEA—as an enabler and proponent for SMME development—and the Selebi-Phikwe Town Council as a regulator of these businesses, which he said is a classic example of the collaboration that the government is advancing in transforming the economy.