CEDA Boss Decry Sluggish Growth In Agribusiness
Pauline Dikuelo | Monday August 20, 2018 13:31
Speaking during the Serowe Agricultural show recently, Thamane told farmers that for the first time in the organisation’s history, services sector has surpassed agribusiness in terms of portfolio size.
“Services sector has the largest portfolio at P873 million which accounts for 37.2 % of the portfolio investment followed by agribusinesses at P860 million of 36.6% whilst property is P404 million at 17.2% and lastly manufacturing at P209 million which is 9% of the portfolio,” he said.
According to Thamane, the sluggish growth of the agribusiness sector is largely due to a number of challenges that farmers have been facing in the recent years.
He said the challenges include the frequent and abrupt closure of Botswana Meat Commission due to various reasons and late payment by government agencies procuring from farmers.
Thamane said there is lack of infrastructure, noting that according to NDP11, only 45% of farmers have access to roads, 17% electricity, 22% telecommunication, 64% water for livestock, 665 water for domestic use, 43% water for irrigation, 39%grain storage, 52% markets and 54% sanitation.
“This has resulted in slow agro-business and supply chain development that is needed to drive the growth of associated sub sectors such as food processing, transport and manufacturing,” he said.
According to Thamane, most citizens apply for agricultural land with the intention of selling it upon allocation.
He said CEDA faces challenges of purchasing highly priced farms, which then render unfavourable returns in investment as the factors of production such as calving rate, mortality and offtake are insufficient to recover both the operating costs and loan obligations.
He however noted that as part of their commitment to capacity building and commercialisation of the sector, they continue to fund businesses in the Agricultural sector year on year despite the challenges it faces.
Thamane said in the financial year alone, CEDA have funded 152 businesses in the sector at the value of P162 million. In particular focus to the Serowe region, CEDA has invested P323.2million on 422 agricultural projects.
Since its inception CEDA has injected P2.3 billion in empowering entrepreneurs locally as part of their economic empowerment drive.