The call was made recently at a Youth and Small Medium Enterprises (SMEs) budget review seminar hosted by Mmegi/The Monitor and First National Bank Botswana (FNBB). During discussions, Chief Investment Officer (CIO) at Mogobe Capital Partners, Rene Tshukudu argued that Botswana’s financial system is not effectively channelling capital to entrepreneurs. He likened the economy to a human body and the financial system to the circulatory system. “If the economy is the body of the country, then the financial system is like the blood circulatory system in which money flows from one point to another,” he said. Tshukudu suggested that venture capital and private equity could help bridge the funding gap for small businesses.
He proposed the creation of an association of venture capital and private equity firms that would mobilise funds from pension funds and government and invest directly in promising SMEs. Such investors, he said, would also guide entrepreneurs on improving business models and scaling operations. Entrepreneur and Dawn Bell founder, Ndiko Muzila highlighted a different path, stressing that mindset and perseverance were key to entrepreneurial success. She explained that Dawn Bell began with limited resources while she was still a university student. “I didn’t have capital. At some point I had to sell books and ginger because there was a dream that needed to be fed,” she said. Muzila urged young people to stop waiting for government support and instead start small. “When you wait for the government, you’re going to get old. You need to utilise the energy that you have now,” she told the audience. Participants also debated the role of government in a private sector-driven economy.
