Mandatory SMME registration awaits ministerial approval
Pauline Dikuelo | Monday June 22, 2026 06:00
The Local Enterprise Authority (LEA) recently concluded nationwide consultations on the proposal after the ministry tasked it to gather views and recommendations from stakeholders within the SMME ecosystem.
Speaking during a stakeholder engagement session this week, LEA Head of Information and Knowledge Management, Dynah Solani, said the consultations recorded strong support for the initiative. A self-administered questionnaire involving 511 respondents found that 98% endorsed mandatory registration, whilst an online survey recorded 79% support.
Solani said stakeholders agreed that any registration system introduced should be affordable, simple and beneficial to enterprises.
“The proposal is aimed at creating a credible and standardised framework for identifying, classifying and tracking SMMEs. “LEA believes this will provide reliable data to support evidence-based policymaking, improve the targeting of enterprise support programmes, and strengthen the effectiveness of interventions designed to grow the sector,” he said.
LEA's caretaker Chief Executive Officer, Thato Jensen, said the initiative is intended to establish a more coordinated, efficient, and data-driven SMME support system that enables government and stakeholders to better understand the sector and maximise its contribution to economic development.
'The proposal is not intended to be punitive but rather to create a structured framework through which government and its partners can effectively identify, support and monitor enterprises,' he said.
According to the Caretaker CEO, one of the key issues raised during consultations was the lack of reliable and up-to-date data on Botswana’s SMME sector. The authority noted that the ecosystem remains fragmented, with institutions maintaining separate databases, making it difficult to obtain a comprehensive picture of the sector and accurately measure its contribution to employment and economic growth.
According to LEA, if approved, mandatory registration would serve as a gateway to a range of enterprise support opportunities, including access to finance, markets, technology, training, business development services, and targeted procurement programmes.
The anticipated benefits include the creation of a single national SMME database, improved coordination amongst support institutions, better measurement of the sector’s economic contribution and enhanced access to support services for businesses. LEA also expects the system to strengthen enterprise growth, competitiveness, innovation, and job creation.
However, some players within the SMME sector have expressed concerns that the mandatory registration is a precursor to other measures, such as penalties for failure to register and other requirements. Some SMMEs suspect that the process will create a situation where those who do not register are excluded from government procurement and other programmes, whilst fears also persist that the registration itself could come with additional compliance costs.
At the workshop, some participants queried how LEA could claim to have secured backing for the exercise, given the small number of attendants at its countrywide consultation tour.
As part of developing the proposal, LEA conducted an international benchmarking exercise covering countries such as Mozambique, Mauritius, India, and Bahrain. The study found that effective registration systems are typically simple, accessible, digitally enabled and linked to tangible benefits for businesses. In many jurisdictions, registration costs are kept low or fully subsidised to encourage participation and maintain accurate enterprise databases.