LEA embarks on nationwide SMME registration
Pauline Dikuelo | Wednesday April 29, 2026 06:00
Through the nationwide campaign, Botswana is expected to develop a centralised database of SMMEs operating across the country. This is anticipated to improve coordination amongst ecosystem players and support more informed planning and targeted interventions. As part of the process, since March this year consultations have been carried out countrywide across all districts and will end by May 2026. LEA Head of Information and Knowledge Management, Dynah Solani, explained that these engagements are intended to gather stakeholder input and ensure that the registration framework is inclusive and responsive to the needs of businesses.
'LEA, as the national SMME development agency, has the mandate to advocate for policies and legislation that enhance access to services and support. It is within this context that the authority is lobbying for the introduction of mandatory SMME registration in Botswana,' she said. The move comes as government, LEA and other development partners continue to face persistent challenges due to the lack of accurate and reliable data on SMMEs. Authorities say the absence of credible data has negatively affected effective policy formulation, planning and programming for the sector. However the agency, which nurtures small businesses, emphasised that the proposed system was not intended to place a burden on businesses. In many economies, similar registration processes are free of charge, recognising the financial constraints faced by SMMEs. LEA indicated that any associated costs, if introduced, would be minimal and outweighed by the benefits adding that importantly, it authority distinguished between mandatory and compulsory registration. Under the proposed framework, there will be no penalties for businesses that do not register.
The disadvantage is that unregistered enterprises would not be eligible to access government services and support programmes reserved for SMMEs, as proof of registration would be required. 'There will be no penalties, it would attract penalties if we were calling for compulsory registration,” Solani clarified. “The difference between the two is that with mandatory registration,you will not be penalised for non registration but you will not be able to access services and support reserved or earmarked for SMME proof of registration,' she added.
LEA believes the introduction of mandatory registration will ultimately strengthen Botswana’s SMME ecosystem by enabling evidence-based policymaking and improving service delivery, while also encouraging gradual formalisation of the largely informal sector. Current estimates of the SMME sector remain inconsistent. The latest figures from a 2024 JICA survey place the number of SMMEs at around 150,000. However, other estimates range between 120,000 and 160,000, with approximately 70 percent believed to be operating informally. LEA maintains that the new registration drive will significantly improve data reliability.