LEA sets sights on agric, manufacturing
Otlarongwa Kgweetsi | Monday February 12, 2024 06:00
These projects will be carried out in collaboration with Small, Micro and Medium Enterprises (SMME) in the country, said acting CEO Godfrey Molefe in a statement this week. These initiatives are part of LEA’s larger target of achieving a 17% contribution to the country’s GDP by 2026.
Molefe stated that one of the key projects identified by LEA is the establishment of the Bokaa Textile Incubator, prompted by the government’s decision to ban the importation of school uniforms. The incubator aims to support both informal and formal textile enterprises by providing shared advanced machinery and equipment. It will also introduce SMMEs to the latest designs and production technology, to improve the quality and output of their products. LEA is also in the process of setting up other village incubator hubs, including the Gantsi Small Stock Incubator, expected to begin operations in the 2024-25 fiscal year.
“This facility aims to leverage the passion and resilience of livestock farmers in and around Gantsi to create a commercial platform through clustering and the establishment of a Small Stock Centre of Excellence,” Molefe said.
“The centre will be part of the small-stock value chain and will contribute to the Tsabong Small-stock Abattoir, thereby promoting access to markets. The beneficiaries of this project will mainly be from the informal sector.”
The acting CEO added that besides these projects, LEA has identified the community of Letsholathebe for the establishment of a horticultural business. The project aims to empower the poverty-eradication beneficiaries of Letsholathebe by utilising 3.5 hectares of land for horticultural production. “The business will employ various production systems, including open fields, tunnels, and nethouse systems, to ensure continuous production. The establishment of this business is expected to improve the economic benefits of the village by creating employment opportunities, reducing imports, ensuring food security, and diversifying the economy,” said Molefe.
He said LEA’s overall objective is to accelerate and upgrade manufacturing start-ups, improve the quality of products, and enhance the efficiency of enterprises through the introduction of technology.
According to LEA’s data, local SMMEs currently contribute 14.3% to the national GDP or about P35 billion annually. Over the past five years, LEA has mentored SMMEs with a total turnover of P3.2 billion, achieved P151 million in import substitution, facilitated market linkages worth P671 million, and created and sustained 6,389 jobs.
Molefe further explained that looking ahead, LEA aims to achieve a collective turnover of P2.4 billion for SMMEs by March 2024, sustain 8,925 jobs, and create an additional 2,200 jobs. As of August 2023, LEA had supported 1,642 enterprises employing 9,385 people, and the parastatal aims to maintain and increase these figures, he said.
“Despite the progress made, SMMEs still face challenges, including limited market access and affordability of funding. However, LEA’s Market Access Division is actively working to address these issues by facilitating linkages between producers and buyers of various products and services,” he said.
LEA has utilised various platforms, such as buyer-seller fora, trade exhibitions, and district shows, to create exposure for SMME goods and services as well as to establish supply opportunities.