LEA struggles to implement projects
Keikantse Lesemela | Thursday December 11, 2014 19:12
In his statement in the authority’s 2013/2014 annual report, LEA chief executive officer, Tebogo Matome said progress towards implementation of the four projects had been modest due to factors beyond authority’s control. “In our last review we did share our frustrations and optimism with respect to their implementation in this financial year. Unfortunately progress towards implementation has been modest due to factors outside our control,” he said.
Matome however, noted that they had been able to secure funding for the Leather Sector Park and the Rapid Incubator in the financial year 2013/2014. The leather project, which is estimated to cost P245 million, is expected to commence in the financial year 2015/2016. Despite these challenges Matome said the leather sector park had been listed for funding in the NDP 10, while the Rapid Incubator would be a critical technical and business skill development tool under the Poverty Eradication Programme.
“We believe the establishment of the leather sector park will showcase a strategic approach to business development by both government and the private sector,” he said. The authority recently announced that their partnership with Chennai-based Central Leather Research Institute (CLRI), who had already offered expertise to the governments of Sudan, Egypt and Ethiopia in order to assist them establish the leather park. He explained that other strategic infrastructure projects they would continue to engage stakeholders on how we can move them forward in order to fast-track their development.
Matome further said access to funding and lack of necessary infrastructure are proving to be two major barriers to the authority’s ability of getting more people to start businesses.
“Access to finance is multiple faceted. Chief among them being limited funding options in terms of funders and product range. This is due to inherent risks and requirement of collateral in debt financing,” he stated.
However, the overall performance for the organisation in the year 2013/2014 is at 76.12 percent, which is 1.12 percent above its target of 75 percent.
Matome stated that the year 2014 served as a transitory year, from a strategy that would offer the country a better chance of achieving its objectives, of economic diversification and growth.
LEA has completed the development of a comprehensive National Entrepreneurship Policy and Implementation Strategy which is aimed at providing blueprint for a comprehensive development of entrepreneurship skills and Small, Medium and Micro businesses. The policy has been submitted to the Ministry of Trade and Industry, for finalisation and submission to Parliament.