Panel discusses how youth, SMEs can anchor economy
Larona Makhaiza - Laone Choeunyane | Wednesday March 18, 2026 06:00
The call was made recently at a Youth and Small Medium Enterprises (SMEs) budget review seminar hosted by Mmegi/The Monitor and First National Bank Botswana (FNBB). During discussions, Chief Investment Officer (CIO) at Mogobe Capital Partners, Rene Tshukudu argued that Botswana’s financial system is not effectively channelling capital to entrepreneurs. He likened the economy to a human body and the financial system to the circulatory system. “If the economy is the body of the country, then the financial system is like the blood circulatory system in which money flows from one point to another,” he said. Tshukudu suggested that venture capital and private equity could help bridge the funding gap for small businesses.
He proposed the creation of an association of venture capital and private equity firms that would mobilise funds from pension funds and government and invest directly in promising SMEs. Such investors, he said, would also guide entrepreneurs on improving business models and scaling operations. Entrepreneur and Dawn Bell founder, Ndiko Muzila highlighted a different path, stressing that mindset and perseverance were key to entrepreneurial success. She explained that Dawn Bell began with limited resources while she was still a university student. “I didn’t have capital. At some point I had to sell books and ginger because there was a dream that needed to be fed,” she said. Muzila urged young people to stop waiting for government support and instead start small. “When you wait for the government, you’re going to get old. You need to utilise the energy that you have now,” she told the audience. Participants also debated the role of government in a private sector-driven economy.
Many agreed that government should focus on creating an enabling environment rather than directly running or funding businesses. Stanbic Bank Botswana representative, David Majid, noted that collaboration among businesses and institutions was essential. “We operate in silos, including large institutions,” he said, adding that stronger partnerships and knowledge sharing could help SMEs grow sustainably. Others highlighted the limitations of current funding models such as youth entrepreneurship schemes, arguing that many programmes provide start up capital but offer little support for scaling businesses. Technology entrepreneur representatives also emphasised the importance of digital tools in expanding businesses beyond Botswana’s small domestic market. They noted that technology has enabled local companies to reach hundreds of thousands of users and expand into other African markets.
However, concerns were raised about gaps in Botswana’s digital economy, particularly the inability of local creators to monetise content on global platforms due to regulatory and market constraints. Overall, speakers agreed that achieving a truly private sector led economy would require a combination of entrepreneurial initiative, improved financing mechanisms and supportive government policies aimed at enabling innovation and growth. The discussion centred on the long standing national aspiration of building a private sector led economy, a phrase that participants noted has been repeated by successive finance ministers since independence but remains largely unrealised and was highlighted during the 2026-2027 budget speech.