Chema Chema reborn as Mafisa
Pauline Dikuelo | Monday August 3, 2026 06:00
Under the revamped framework, entrepreneurs operating in similar sectors will be encouraged to organise themselves into co-operatives and clusters where they can collaborate, purchase collectively, share infrastructure, strengthen governance systems, improve market access and receive continuous business development support from government.
The Minister of Trade and Entrepreneurship, Tiroeaone Ntsima, said the transition marks a shift in government’s approach to small business financing, by moving away from providing isolated financial assistance.
Originally launched to address financing gaps within the informal sector, the Chema Chema Fund was established as a revolving fund aimed at supporting citizen-owned small businesses and start-ups that struggled to access affordable finance. The initiative was introduced with an initial P200 million seed capital allocation, which was later increased to P500 million due to growing demand from entrepreneurs.
Through the fund, eligible beneficiaries could access loans of up to P50,000 at a low interest rate of 2.4 percent to support various business needs, including expansion, purchasing equipment and infrastructure, capacity building, and administrative costs.
However, following a comprehensive review of government programmes, including Chema Chema, government found that whilst the fund provided critical financial support to entrepreneurs, there were challenges that limited its ability to achieve the desired economic impact.
The minister said the review highlighted shortcomings such as limited post-funding monitoring, inadequate business support mechanisms, weak coordination and insufficient structures to help funded businesses grow into sustainable enterprises.
“Government noted that many beneficiaries continued to operate as individual businesses, limiting opportunities for collaboration, economies of scale, improved productivity and access to larger markets,' Ntsima said.
'Under Mafisa, government will therefore focus on supporting organised groups of entrepreneurs rather than standalone businesses. “Through co-operatives and business clusters, small enterprises are expected to become stronger, more bankable and better positioned to create employment opportunities.”
According to the minister, the new programme will provide more than financing. It will include business training, co-operative governance support, financial literacy, digital skills development, mentorship, market linkages and continuous monitoring to improve accountability and sustainability.
A task team has been established to coordinate and oversee the implementation of the Mafisa Programme, whilst approved Chema Chema applicants whose funds have not yet been disbursed have been encouraged to form co-operatives or clusters and access support under the new framework.
Ntsima expressed that government believes that businesses grow faster when entrepreneurs work together and that the Mafisa model will help transform the informal sector into a more productive engine of inclusive economic growth.