COVID-19 forced CEDA to foreclose P175m worth accounts
Pauline Dikuelo | Tuesday November 21, 2023 06:00
He told Members of Parliament that CEDA has foreclosed about 237 accounts valued at P175 million since the pandemic, with two from the hospitality sector valued at P25 million. As at March 31, 2020, before the onset of COVID-19, CEDA’s portfolio was made up of 5, 482 accounts valued at P2.4 billion.
To foreclose means to seize assets of a borrower in cases where the loan repayments are in serious arrears. Gare said of the measures put in place: “These include extension of repayment holidays for up to a maximum period of 12 months across sectors and reflects from March 2020 to April 2021. Rescheduling of 1, 458 loans on portfolios valued at P329 million across sectors.” Amongst others was the introduction of the Letlhabile micro loan product for the informal sector, which specifically focuses on uplifting the informal sector.
The scheme provides loans from as little as P500 up to P10, 000 to businesses in retail, services, transport, agriculture and other types of micro-enterprises. It targets individuals who predominantly sustain their livelihood through businesses activities in micro an informal enterprise. Letlhabile also focuses on supporting businesses in the informal and micro enterprise sector that were in existence and trading prior to COVID-19 pandemic. “This is geared at resuscitating the informal sector businesses that were affected due to the closure and movement restrictions. CEDA has also extended working capital facilities to business that had been affected by the pandemic through the Industry Support Facility,” Gare added.
In 2020, CEDA launched a new set of guidelines that offered entrepreneurs an opportunity to be funded up to the tune of P50 million with no collateral. The move was part of the President Mokgweetsi Masisi’s roadmap to create wealth for indigenous Batswana while building a strong middle class. By then they identified sectors that could be given special consideration and have potential to create jobs, which included manufacturing, tourism, energy, technology, innovation ,construction and the creative industry. On a yearly basis, CEDA targets to fund P450 million worth of projects.