Business reporters key to indebtedness story � Thamane

Keikantse Lesemela | Monday June 23, 2014 12:15

 

Speaking at CEDA’s workshop for business journalists last Wednesday, Thamane added his organisation’s voice to growing cross-sectoral concerns on the rising levels of household indebtedness.

“Government is concerned about the high level of indebtedness which accounts to 80 percent of loans from banks,” he said.

“Business reporters can help to understand the impact of this indebtedness on the households themselves.”

While several oversight institutions such as the Bank of Botswana, Non-Bank Financial Institutions Regulatory Authority (NBFIRA), are focused on financial system stability, commentators are concerned that consumer welfare in the indebtedness crisis is going unheeded.

Although CEDA does not give out the Personal Installment Loans where formal indebtedness and arrears are highest, its various entrepreneurial development products have accrued a high arrears rate that has affected the CEDA fund’s ability to revolve to new beneficiaries. The Agency, however, continues to have a global standard failure rate among SMMEs and often beats the field.

Thamane told reporters that the Agency had also noted a gap in the reportage of SMMEs, with local media focusing on the larger entities in the economy.

“We have realised there is a big gap in SMME reporting and our local media is focused on big organisations forgetting that SMMEs are making a meaningful impact to the economy,” he said.

“The media should also report about SMMEs and maybe some of these success stories will encourage other entrepreneurs to come forward.”

The CEO also revealed from April 2013 to date, the Agency has financed a total of 213 new businesses, with an expected domestic investment of P391 million, yielding total employment of 1,859 jobs.

The businesses are in the sectors of property, manufacturing, services and agribusiness and are located across the country.

Giving the keynote address at the workshop, Vice President Ponatshego Kedikilwe, said the media plays a vital role as it can relay relevant economic developments such as employment opportunities and expansions. “It is therefore absolutely crucial for media practitioners, more especially those reporting on economic and development issues, to be grounded in at least basic understanding of how markets operate and how, consequently, businesses falter or prosper,” said Kedikilwe.

He said greater SMME reporting would enable Batswana to successfully compete as a player within a regional and global economy whose playing field is not always favourable.

“This puts an even greater burden on us to collectively achieve higher levels of productivity by knowing how to profit from opportunity. Such knowledge begins with better information and communication, which is the very business of the media,” the Vice President said.