Overview  of  CEDA  

Prepared  by:    Merapelo  Montshiwa  
   Customer  
CAPACITY   Service  CSoordinator  
BUILDING   EMINAR-­‐BITC  
             
       Dra;    Vol.  1  October  2011  
By  :Ntebogang  Galeboe  
 
3  DECEMBER    2013  

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 TABLE  OF  CONTENTS  

1.  IntroducCon              4  
2.  Criteria  for  Assistance            5  
3.  ClassificaCon  and  DefiniCons  of  Enterprises  by  size      6  
4.  ApplicaCon  Process  Criteria          7  
5.  Product  Lines              8  
6.  Agribusiness              9  
7.  Services              20  
8.  Property  and  Manufacturing          30  
9.  Business  Advisory  Services          35  
   
   

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 INTRODUCTION
CiCzen   Entrepreneurial   Development   Agency   (CEDA)   is   a  
developmental  insCtuCon  established  in  2001  by  Government  of  
Botswana.  
The  core  mandate  are:  
The  provision  of  funding  for  the  development  of  compeCCve  and  
sustainable   ciCzen   own   business   and   joint   ventures   operaCng  
both  within  and  expanding  outside  the  country    

Foster   ciCzen   entrepreneurship   and   empowerment   through  

encouragement  of  local  entrepreneurial  culture  through  funding  
To  address  the  problem  of  access  to  finance  by  the  SMME  due  to  
their   inability   to   meet   security   requirements   of   commercial  
banks   and   other   financial   insCtuCons   through   credit   guarantee    
To   provide   mentoring,   technical   assistance   and   other  
appropriate  support  to  CEDA  Funded  enterprises.  
 
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 CRITERIA  FOR  ASSISTANCE  
 
 

 
CEDA  assistance  is  in  the  form  of  financial  assistance  to  ciIzen  entrepreneurs  who  wish  to  start,  
expand  or  acquire  business  opportuniCes  in  all  sectors.  There  are  four  sectors  in  CEDA  and  they  
are;  
1.  Agribusiness  
2.  Property  and  Manufacturing  
3.  Services  
4.  Structured  Finance.  
 
To  qualify  for  financial  assistance  with  CEDA,  the  following  will  be  considered;  
a)  CiCzens  of  18  years  and  above  
b)  Viable  and  sustainable  ciCzen  projects  and  joint  ventures  between  ciCzen  and  foreigners    
c)  CiCzen  owned  business  that  are  facing  foreclosure    and  are  seeking  to  re-­‐finance  
d)  The  promoter  will  have  to  be  directly  involved  in  the  running  of  the  business  (owner  
managed)  so  that  CEDA  could  develop  and  mentor  the  promoter  effecCvely  

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 ClassificaIon  and  DefiniIons  of  
Enterprises  by  size  
Type   Turnover   No.  of   Loan  limit   Interest   Repayment  
employees   Range   Rate   Period  
Micro  Scale   Up  to  P60   Up  to  6   P500  –  P150   5%  per   5  years    
000.00   employees   000.00   annum  
Small  Scale   Up  to  P1,   Up  to  25   P150  000.01   5%  per   5  years  
500  000.00   employees   –  P500   annum  
000.00  
Medium   Up  to   Up  to  100   P500  000.01   7.5%  per   Up  to  10  
Scale   P5million   employees   –  P4  000   annum   years  
000.00  
Large  Scale   In  excess  of   More  than   P4  000   Market  Rate   Up  to  15  
P5million   100   000.01  to   years  
per  annum   employees   P30  million  

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 APPLICATION  PROCESS  CRITERIA  
The  CEDA  guidelines  specify  the  following  criteria  in  the  evaluaCon  of  viability:    
   
(a)  Management  
(b)  Market  
(c)  Projected  profitability    
(d)  Sustainability  
(e)  AnCcipated  growth  of  the  business.    
   
In  addiCon  to  the  viability  criteria,  CEDA  will  in  all  cases,  assist  clients  who  meet  the  
following  requirements:  
   
• Good  credit  raCng  
• Good  security  held  by  the  Agency  
• Show  commitment  by  contribuCng  towards  the  project  
• SaCsfactory  operaConal  performance  of  the  business  

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 PRODUCT  LINES  
CEDA  shall  provide  financial  assistance  in  the  form  
of  the  following;  
   
• Loan  Finance  
• Property  Loans  
• Equity    
• Guarantees      
• Business  Advisory  Services  (Mentoring  and  
Training)    

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 AGRIBUSINESS  

HorIculture  
ProducIon  of  Vegetables,  
Fruits  and  Flowers  
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 HORTICULTURE  
Requirements  
1.  Title  deed  or  Lease  Agreement  (with  terms  and  
condiCons)    
2.  There  must  be  developments  on  leased  farms  
3.  Minimum  of  2ha  of  land  
4.  Minimum  of  0.5ha  of  land  must  have  net  shade  
5.  Water  yield  of  5  to  6m3  per  hour/ha  
6.  Soil  and  water  test  report  must  be  availed  
 
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 Citrus  Crops  
•  Requirement  
 
1.  A  minimum  of  4ha  of  land  
 
2.  A  minimum  of  6m3  per  hour  of  water  

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 Rain  Fed  Agriculture  
These  are  field  crops  that  rely  on  rainfall  eg  
grains,  fodder  
 
Requirements  
 
•  A  minimum  of  150ha  land  

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 CATTLE  BREEDING  
Requirement  
1.  Title  deed  or  lease  agreement  of  the  farm.    
2.  Minimum  breeding  stock  of  100  cows  
3.  Minimum  breeding  stock  of  40  for  stud  cows  
4.  Weaner  producCon  of  100  cows  
5.  Weaner  finishing  of  200  cows      

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 Small  Stock  
The  producCon  of  goats  and  sheep    
 
Requirements  
 
1.  Minimum  breeding  stock  of  100  animals  
2.  Land-­‐  2ha  per  goat  per  year  
3.  Buck  to  Doe  raCo  is  1:25  

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 POULTRY  
•  Broilers    
Raised  specifically  for  meat  producCon  
Requirements  
1.  Must  have  an  abagoir  which  meets  the  
minimum  standard  of  the  livestock  and  meat  
industries  act.  
2.  Minimum  6  000  birds  per  cycle  
3.  Reliable  source  of  water  and  electricity  
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 POULTRY  
•  Layers  –  raised  for  eggs  
 
Requirements    
 
1. Minimum  of  2  000  birds  per  cycle  

2. Reliable  source  of  water  

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 DAIRY  FARMING  
Requirements    
1. A  minimum  of  100  cows  
2. 20ha  for  fodder  producCon  per  100  cows  
3. The  farm  should  be  100km  on  tarred  road  and  
70km  on  gravel  road  from  the  market  
4. Electricity  must  be  available.  
5. 60litres  of  water  per  cow  per  day  –  at  least  a  
borehole  of  yield  of  5m3  per  hour.  
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 FEEDLOT  
•  Requirement  
 
1.  There  must  be  an  agreement  with  BMC  
under  BMC  feedlot  scheme  

2.  Water  yield  of  5m3  per  hour    

 
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 PIGGERY  
Requirement  
1.  Minimum  stock  of  100  sows  

2.  Reliable  source  of  water  

 
3.  An  abagoir  within  the  sub  district  otherwise  it  
must  be  included  in  the  budget.    
 
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SERVICES  

.  

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 BUSES  AND  TAXIS  (including  cabs)  
•  Requirement  
1.  Proof  of  market  

2.  Valid  permit  prior  to  approval  

3.  AddiConal  security  to  share  risk  

4.  Loan  term  not  exceeding  5  years  

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 TRUCKS/  PLANT  &  MACHINERY  
Requirements  
1. Contract  to  ferry  goods  
2. Binding  triparCte  contract  to  ferry  goods  in  case  
of  a  subcontract.  
3. Deed  of  cession  of  income  in  favour  of  CEDA  to  be  
signed  
4. The  3rd  party  must  be  credible  
5. Submit  3rd  party’s  profile  and  background.  
6. Term  of  contract  must  not  be  less  than  term  of  
proposed  CEDA  facility.  

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 RETAIL  OPERATIONS  
THIS  INCLUDES;  
1.  Supermarkets  
2.  General  Dealers  
3.  Service  StaCons  
4.  Restaurants  
5.  Furniture  shops  

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 RETAIL  OPERATIONS-­‐  ConInued  
6.  Bogle  stores/  Bars  
7.  Butcheries/  Fresh  produce  
8.  Hardware  shops  
9.  Street  vendors  
10.  Bookshops  
11.  Pharmacies  

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 RETAIL  OPERATIONS-­‐  Cont…  
Requirements  
1.  Signed  lease  agreement  
2.  Approved  land  use  
3.  Evidence  of  sustainable  market  
4.  Good  credit  raCng  for  promoters  
5.  Good  security  to  share  risk  

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 SERVICES  OPERATIONS  
These  include;  
1.  Hotel  and  Tourism  
2.  Catering  
3.  ConstrucCon  
4.  Repairs    of  motor    vehicles  
5.  Laundry  &  Dry  Cleaners  
6.  Funeral  Parlours  
7.  Gardening  &  Land  scarping  
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 SERVICES  OPERATIONS  (Cont…)  
8.  Hair  &  Beauty  Saloons      
9.  Arts  &  Cra;s  
10.  Medical  Services  
11.  Phone  Shops  
12.  Recycling  Services  
13.  Upholstery  
14.  Sewing  &  Knilng  
15.  Security  Services  

 
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 SERVICES  OPERATIONS  (Cont…)  
16.  Driving  Schools  
17.  PrinCng  &  Publishing  
18.  Engineering  Services  
19.  Video  ProducCons  Services  
20.  IT  Systems  
21.  Travel  Agencies  
22.  Insurance,  Debt  Recovery  and  Glass  works  etc  

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 SERVICES  OPERATIONS  (Cont…)  
•  Requirements  
1.  Signed  lease  agreement  
2.  Approved  land  use  
3.  Evidence  of  sustainable  market  
4.  Good  credit  raCng  for  promoters  
5.  Good  security  to  share  risk  
 

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 PROPERTY  LOANS  

ConstrucIon  loans  
Loan   used   for   the   construcCon   of   property   or   to  
complete   a   parCally   developed   or   incomplete  
structure.  

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 ConstrucIon  loans  
 
Requirements  
 
1.  Approved  Building  Plans  
2.  Bills  of  QuanCCes  from  a  cerCfied/  cerCfied  
QuanCty  Surveyor  to  jusCfy  the  request    
3.  Three  quotaCons  from  3  ConstrucCon    
 Companies  (labour  and  Material)    
4.  Tenant  profile  to  demonstrate  sustainability  of  
 project  income.  

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 Property  Purchase  Loans  
A  loan  used  for  the  purchasing  of  an  exisCng  
property  
Requirements  
1.  Offer  of  sale/  Deed  of  sale  
2.  Copy  of  Cgle  deed  
3.  ValuaCon  Report  
4.  Structural  Survey  Report  
5.  Tenant  profile  
6.  Approved  plans  if  alteraCons  are  to  be  made.  
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 Extension  Loans  
•  Loans  used  for  extension  of  property  

•  Aim  at  increasing  scope  of  the  building  

•  Improve  on  the  earnings  capacity  

•  RenovaCng  the  property  

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 Extension  Loans  (Cont…)  
•  Requirements  
1.  Approved  Building  Plans  

2.  Bills  of  quanCCes  

3.  At  least  3  quotaCons  from  ConstrucCon  

Companies  (labour  &  Material)  

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 Business  Advisory  services    
Coverage  

•  newly  financed  projects  

•  projects  in  arrears  
•  those  requiring  specialist  skills;  or  
•  those  requiring  some  invesCgaCon  

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 Service  Delivery  
CLIENT  SERVICE  CENTRES  

Gaborone      
Palapye  
Head  Office    
Francistown  
Gaborone   Maun  
Ghanzi  

Service  Delivery  
Kanye  
Molepolole  
Selebi  Phikwe  

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•  Private Bag 00504
CEDA  HEAD  OFFICE  
•  Gaborone
•  Tel: 3170895
•  Fax:3913407
•  www.ceda.co.bw

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 Conclusion  
•  We  remain  an  interested  and  willing  partner  
in  the  development  of  Botswana  
 
•  That  said,  we  sCll  have  a  responsibility  to  
revolve  the  fund  so  that  more  of  our  ciCzens  
can  have  a  bite  at  this  cake  

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Thank  you  
 

END  

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