CEDA launches new micro-finance product

Thamane PIC: KAGISO ONKATSWITSE
Thamane PIC: KAGISO ONKATSWITSE

The Citizen Entrepreneurial Development Agency (CEDA) has developed a loan product amounting to P20 million intended for low micro-businesses that are not able to access the main CEDA Development Fund.

Called Mabogo-Dinku, the product allows micro-entrepreneurs to apply for loans of up to P150, 000 payable in three to 12 months to fund working capital and asset purchases. CEDA chief operations officer, Andrew Madeswi said the product will be issued through a group methodology of a minimum of five and maximum of 15 people, adding that it has easy application procedures, no collateral required, shorter turnaround time, and flexible repayments. “The product is for citizens aged 18 years and above and for one to benefit from the product, they should belong to a group. Those who are employed and earning below P3, 000 also qualify for Mabogo-Dinku,” he said. For ease of managing the affairs of the group, CEDA has developed a standard constitution for the members to adopt as the governing framework.

Madeswi noted that loan processing forms shall be completed by the members in need of the loan and presented to the group for consideration and endorsement before submission to CEDA.

Editor's Comment
Tana project a welcome development

Whilst the project received mixed reactions from members of the public, the project is indeed a welcome development, which needs to be implemented as soon as possible. Many shared their opinion, with those against the project decrying that if implemented, it will kill the already struggling public transport industry.Many countries around the world have state-run public transport, and those who have travelled to such countries will give testimony...

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