Business

LEA proposes new incubator model

The incubator programme will be turned into a profit making model
 
The incubator programme will be turned into a profit making model

 

Speaking at the tour of the Glen Valley facility on Wednesday, LEA chief executive Tebogo Matome said the three year incubation period has resulted in the incubator programme benefiting a limited number of farmers, due to a long incubation period.

“We are proposing a new model in which trainees will take only one year in this facility to give others space. It has been proposed that the Glen Valley incubator be converted into a training-cum-profit centre, we would like the government to support this”, said Matome.

LEA will be getting 50 percent and the client will be getting 50 percent of the profits.

He explained that the new model will encourage the client to be committed and motivated to work harder for an increased profit as well as improved entrepreneurial skills.

The clients will be able to save money to enable them to contribute to develop their own enterprises upon graduation. “All LEA costs will be covered and the profit generated from such will enable LEA to roll out more incubators across the country,” he said.

The model will also help clients to have financial track records for financiers to consider funding their projects upon graduation.

Matome explained that other participants would also be able to access the programme without finance. He highlighted that some of the business development challenges include the exclusive access into the incubator due to the fact that inputs would have to be paid for by the clients in advance. “

“This then made it difficult for graduates and beneficiaries of the young farmers fund to come into Glen Valley as they may not have such funds to make advance payments,” said Matome.

The incubator has been able to expose and train clients on different horticultural techniques and technologies.

“The facility has afforded horticulture entrepreneurs practical experience in operation and management of different production structures, crop management techniques and business management skills,” he said. 

Matome also explained that the incubator was never meant to increase tomato production in Botswana but rather to teach Agri-prenuers how to produce in a controlled environment.

However the incubator has been able to produce and supply tomatoes throughout the year since its inception and has facilitated in the creation of 36 jobs for locals per cropping cycle.

According to the ministry of Agriculture statistics for the year 2012/2013, local production of tomatoes amounted to 60 percent of the local demand. The local production was recorded at 7,052 tonnes and the Glen Valley production was 384 tonnes, which accounts to 5.45 percent of the local production.

The qualities of tomatoes produced in the incubator is highly competitive in the local market and due to that the incubator clients have been able to penetrate and maintain a share of the local market, Lack of local seedling suppliers is one of the major challenges faced by the incubator and this has lead to the facility importing seedlings from South Africa. “We do not have a seedling production facility but we are working hard to put up the facility to solve this problem”, said Matome.

On his note Vice President Ponatshego Kedikilwe said the clients should work hard to improve food production in the country.  “This is the responsibility of individual farmers. You have to plan to produce for your children and your country and not be reliant on the government”, said Kedikilwe. He said sustainability of the country could only come from farmers if they can only fill the market gap and this is fostered through partnership.