Traders here spoke to Mmegi and highlighted the paradox of Chema Chema being launched shortly after the demolition of the Francistown Central Business District (CBD) market place and the eviction of some informal traders.
The demolition sparked controversy among the public, considering it was the result of a legal battle that the Francistown City Council (FCC) doggedly pursued until it secured a favourable ruling in December.
After the long running stand-off between the two sides, the FCC approached the Francistown High Court in May in a bid to secure an eviction order. More than 80 people were impacted by the local authorities’ recent decision to demolish the area.
While some are impressed with the newly introduced ‘Chema Chema Fund’ for the informal sector, many here who spoke to Mmegi expressed shock and confusion. They alleged that the new initiative was politically motivated to favour the ruling party during the upcoming elections.
Francistown Street Vendor Umbrella committee chairperson, Nenguba Mbulawa, said that a portion of the "Chema Chema Fund" ought to be allocated specifically for Francistown in order to make room for future developments.
The umbrella committee oversees six street vendors associations which include Rea Ikopela, Matshambo, Tabepo, Vibrant, Ntshe and Re Ya Kae.
Mbulawa asserted that the informal sector is essential for lowering poverty and creating job opportunities.
“A portion of the funds should be given to the FCC in order for them to establish a sizable marketplace for the local vendors, some of whom were negatively impacted by the demolition of the CBD market area,” he said. “The creation of a new market area would help nearby informal vendors, especially those who are still sitting on their hands after being forced to vacate the CBD market area. “For example, a suitable location for a market area is an empty space next to the railway tracks, directly across from the taxi rank. “To make the town look more appealing, informal vendors should be moved there so they can be taken off the sidewalks and other surfaces.”
Mbulawa mentioned that seminars could potentially be held to educate the informal sector on how to advertise their goods and services so that customers may locate them. He suggested that the informal traders offering services related to horticulture should shift to a market area close to the fire department.
“This alone will aid in the eradication of unlicensed vendors found in town. “The structures should be the same as those of other marketplaces across outside the country,” he said.
Additionally, Mbulawa expressed the hope that Chema Chema would be implemented optimally to ensure its success, noting that previous government initiatives had failed due to incorrect implementation.
He said, for example, many Batswana were relieved when the Youth Development Fund was established, as they believed it would resolve their entrepreneurial problems.
“Many of the beneficiaries of the same fund lack business acumen, which is causing the scheme to fail. “For the Youth Development Fund, beneficiaries should have been business-oriented people. "I also pray Chema Chema doesn't wind up in the same place as the COVID-19 relief funds intended for the informal sector. "I recall that P1,000 was intended to be given to informal traders, but due to poor coordination, many of them did not receive it," he said.
Keeme Tsheko, one of the recently evicted central market vendors, expressed disappointment that Chema Chema was kicking in after their recent misfortune.
He said while government was quick to announce the new programme for the informal sector, it had failed to find an alternate location that would have been suitable for their business following the demolition and eviction.
“I was forced to relocate my business to my home. “Government frequently introduces such programmes in order to further its political agenda. “They always introduce initiatives in budget addresses, which do not benefit us," Tsheko said.
He continued: "Look at the Nyeletso Lehuma initiative. People who live in towns were given goats, which made no sense at all."
For his part, however, the chairperson of the Re a Ikopela Street Vendors Association, Zachariah Khunda, expressed optimism that Chema Chema would present opportunities for vendors.
Khunda main grip is that “government tends to draw up complex initiatives when it is under pressure which often makes implementation very hard”.
“Despite this, Chema Chema could have a positive impact on job creation and economic development if it is implemented flawlessly,” he said.
Meanwhile, Finance Minister Peggy Serame has said that guidelines and particulars for the Chema Chema Fund will be out by the end of February this year. She told a Youth Budget meeting on Wednesday that by March she would lead ministerial teams to different parts of the country raising awareness about Chema Chema through kgotla meetings.
“The idea behind the Chema Chema Fund is that we want to cater for everyone, especially the informal sector. “Not everyone has a degree and we want people not to struggle with getting the Fund. “We believe that the Botswana Innovation Hub and Citizen Entrepreneurial Agency will be of help in terms of assisting people about Chema Chema Fund,” Serame said.
Serame explained the meaning of Chema Chema.
“Go Chema Chema means go, get up and do something. “We introduced the Chema Chema Fund so that the people in society at large are able to stand up for themselves and make a change,” said Serame.
Speaking at the meeting, the founder and owner of Organic Naturals, Didintle Moreki, said that the Chema Chema Fund has been widely welcomed by the youth as a positive step towards transforming the informal sector and providing much-needed financial support to entrepreneurs and small businesses.
She said many believe the initiative will not only boost economic growth but also create numerous job opportunities for Batswana.
“We appreciate the government's focus on empowering and supporting this sector to realise its full potential,” she said. “By providing financial assistance, the Chema Chema Fund can help entrepreneurs overcome the barriers they face in accessing capital, thereby enabling them to expand their businesses and contribute to the economy.”
While the Chema Chema Fund has received widespread support, some critics have raised concerns about its implementation and effectiveness. One common concern raised at Wednesday’s meeting was the potential for mismanagement and corruption in the allocation of funds. The youths emphasised the need for transparency and accountability in the selection process to ensure that the funds reach deserving entrepreneurs and small businesses.
Lesego Bame, a student at the Botswana International University of Science and Technology, expressed concern about the sustainability of the revolving fund. She also questioned sufficiency of the seed capital of P200 million being put in by government, compared to the demands of the informal sector.
Bame said the informal sector is vast and diverse and government should consider increasing the initial capital injection to ensure the fund's long-term viability and impact.
“It is also crucial for the government to establish a robust monitoring and evaluation system for the Chema Chema Fund. “This will help ensure that the funds are utilised effectively and reach the intended beneficiaries. “Additionally, the government should provide regular updates and reports on the fund's progress to maintain transparency and build trust among the youth.”
Bame added: “I also propose that government should collaborate with financial institutions and organisations experienced in supporting small businesses. “By leveraging on their expertise, the Chema Chema Fund can provide not only financial assistance but also mentorship and training programmes to enhance the skills and knowledge of entrepreneurs.”
