Botswana's Citizen Entrepreneurial Development Agency (CEDA) is pushing a raft of initiatives and policy changes aimed at providing more services to the small-, micro- and medium-sized enterprise (SME) market.

By providing these services, which include letter of credit (L/Cs), CEDA aims to win more business from smaller companies that over recent years have tended to use commercial banks and other lenders.

New products

The agency has introduced new products, including L/Cs, debt and equity financing, guarantees and performance bonds.

CEDA also provides mortgage services, invoice discounting and factoring products.

Perceptions

A big issue for CEDA is whether it can improve perceptions amongst SMEs that the agency rejects too many applications.

Agency officials now accept that performance could be better and say they have launched several strategies to improve service delivery.

Improvements

One of the agency's main selling points is that its interest rates, at between 5-7 per cent, are now way below those offered to SMEs by Botswana's commercial banks.

The agency has also extended loan repayment periods from seven to 15 years and has consolidated its product range.

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