NDB invites applications for P600m fund

Staff Writer | Friday February 5, 2021 14:30

The facility was commissioned by the Ministry of Investment, Trade and Industry as part of the Economic Recovery Transformation Plan (ERTP) last year. About P1.3 billion was made available to firms and individuals via developmental finance institutes including NDB, which has been allocated P600M to lend out into agriculture, tourism and general industry.

According to NDB chief executive officer Lorato Morapedi, the approved ERTP is aimed at addressing the short-term working capital requirements of businesses. “The key objectives are to stabilise businesses that have faced COVID-19 pandemic effects,” she said. The fund is open to citizen and non-citizen owned businesses including those which are not operating as companies and those which were already in operation for the year 2019-2020.

Under the funds managed by NDP, the development bank has allocated P100 million to agriculture, P200 million to tourism and P300 million to general businesses. The loans can fund business venturing into crop production, buying livestock, farm implements, property, equipment and others, to mention a few. “Agricultural loans range from P50,000 to P1 million and for farmers to be eligible they should be registered for tax. Where farmers have not registered, they should undertake to have registered three months from the date of the loan agreement.

“Emerging and commercial farmers should have annual financial statements for the previous financial year,” she said. Businesses without past 12 months’ financials are required to produce proof of production from the Ministry of Agriculture for the previous year and farmers operating as companies should be registered with the Companies and Intellectual Property Authority (CIPA).

Under tourism, the loans are open to citizen and non-citizen owned businesses, which were already in operation during the 2019-2020 calendar year.

They need to have a valid tourism licence, be registered with CIPA, registered for tax and have annual financial statements prepared by a Botswana Institute of Chartered Accountants member. “The general business loans are capped at 10% of company’s previous year turnover with a cap of P5million and are open to both citizens and non-citizen owned businesses that were already in operation during 2019-2020. They must be registered with CIPA, registered for tax and up to date,” Morapedi said.