Overview of CEDA. By :Ntebogang Galeboe 3 DECEMBER 2013

Transcription

1 Prepared by: Overview of CEDA Merapelo Montshiwa CAPACITY Customer BUILDING Service Coordinator SEMINAR- BITC Dra; Vol. 1 October 2011 By :Ntebogang Galeboe 3 DECEMBER

2 TABLE OF CONTENTS 1. IntroducCon 4 2. Criteria for Assistance 5 3. ClassificaCon and DefiniCons of Enterprises by size 6 4. ApplicaCon Process Criteria 7 5. Product Lines 8 6. Agribusiness 9 7. Services Property and Manufacturing Business Advisory Services 35 2

3 INTRODUCTION CiCzen Entrepreneurial Development Agency (CEDA) is a developmental insctucon established in 2001 by Government of Botswana. The core mandate are: The provision of funding for the development of compeccve and sustainable ciczen own business and joint ventures operacng both within and expanding outside the country Foster ciczen entrepreneurship and empowerment through encouragement of local entrepreneurial culture through funding To address the problem of access to finance by the SMME due to their inability to meet security requirements of commercial banks and other financial insctucons through credit guarantee To provide mentoring, technical assistance and other appropriate support to CEDA Funded enterprises. 3

4 CRITERIA FOR ASSISTANCE CEDA assistance is in the form of financial assistance to ciizen entrepreneurs who wish to start, expand or acquire business opportunices in all sectors. There are four sectors in CEDA and they are; 1. Agribusiness 2. Property and Manufacturing 3. Services 4. Structured Finance. To qualify for financial assistance with CEDA, the following will be considered; a) CiCzens of 18 years and above b) Viable and sustainable ciczen projects and joint ventures between ciczen and foreigners c) CiCzen owned business that are facing foreclosure and are seeking to re- finance d) The promoter will have to be directly involved in the running of the business (owner managed) so that CEDA could develop and mentor the promoter effeccvely 4

5 ClassificaIon and DefiniIons of Enterprises by size Type Turnover No. of employees Micro Scale Small Scale Medium Scale Large Scale Up to P Up to P1, Up to P5million In excess of P5million per annum Up to 6 employees Up to 25 employees Up to 100 employees More than 100 employees Loan limit Range P500 P P P P P P to P30 million Interest Rate 5% per annum 5% per annum 7.5% per annum Repayment Period 5 years 5 years Up to 10 years Market Rate Up to 15 years 5

6 APPLICATION PROCESS CRITERIA The CEDA guidelines specify the following criteria in the evaluacon of viability: (a) Management (b) Market (c) Projected profitability (d) Sustainability (e) AnCcipated growth of the business. In addicon to the viability criteria, CEDA will in all cases, assist clients who meet the following requirements: Good credit racng Good security held by the Agency Show commitment by contribucng towards the project SaCsfactory operaconal performance of the business 6

7 PRODUCT LINES CEDA shall provide financial assistance in the form of the following; Loan Finance Property Loans Equity Guarantees Business Advisory Services (Mentoring and Training) 7

8 AGRIBUSINESS HorIculture ProducIon of Vegetables, Fruits and Flowers 8

9 HORTICULTURE Requirements 1. Title deed or Lease Agreement (with terms and condicons) 2. There must be developments on leased farms 3. Minimum of 2ha of land 4. Minimum of 0.5ha of land must have net shade 5. Water yield of 5 to 6m 3 per hour/ha 6. Soil and water test report must be availed 9

10 Citrus Crops Requirement 1. A minimum of 4ha of land 2. A minimum of 6m 3 per hour of water 10

11 Rain Fed Agriculture These are field crops that rely on rainfall eg grains, fodder Requirements A minimum of 150ha land 11

12 CATTLE BREEDING Requirement 1. Title deed or lease agreement of the farm. 2. Minimum breeding stock of 100 cows 3. Minimum breeding stock of 40 for stud cows 4. Weaner produccon of 100 cows 5. Weaner finishing of 200 cows 12

13 Small Stock The produccon of goats and sheep Requirements 1. Minimum breeding stock of 100 animals 2. Land- 2ha per goat per year 3. Buck to Doe raco is 1:25 13

14 POULTRY Broilers Raised specifically for meat produccon Requirements 1. Must have an abagoir which meets the minimum standard of the livestock and meat industries act. 2. Minimum birds per cycle 3. Reliable source of water and electricity 14

15 POULTRY Layers raised for eggs Requirements 1. Minimum of birds per cycle 2. Reliable source of water 15

16 DAIRY FARMING Requirements 1. A minimum of 100 cows 2. 20ha for fodder produccon per 100 cows 3. The farm should be 100km on tarred road and 70km on gravel road from the market 4. Electricity must be available litres of water per cow per day at least a borehole of yield of 5m 3 per hour. 16

17 FEEDLOT Requirement 1. There must be an agreement with BMC under BMC feedlot scheme 2. Water yield of 5m 3 per hour 17

18 PIGGERY Requirement 1. Minimum stock of 100 sows 2. Reliable source of water 3. An abagoir within the sub district otherwise it must be included in the budget. 18

19 SERVICES. 19

20 BUSES AND TAXIS (including cabs) Requirement 1. Proof of market 2. Valid permit prior to approval 3. AddiConal security to share risk 4. Loan term not exceeding 5 years 20

21 TRUCKS/ PLANT & MACHINERY Requirements 1. Contract to ferry goods 2. Binding triparcte contract to ferry goods in case of a subcontract. 3. Deed of cession of income in favour of CEDA to be signed 4. The 3 rd party must be credible 5. Submit 3 rd party s profile and background. 6. Term of contract must not be less than term of proposed CEDA facility. 21

22 RETAIL OPERATIONS THIS INCLUDES; 1. Supermarkets 2. General Dealers 3. Service StaCons 4. Restaurants 5. Furniture shops 22

23 RETAIL OPERATIONS- ConInued 6. Bogle stores/ Bars 7. Butcheries/ Fresh produce 8. Hardware shops 9. Street vendors 10. Bookshops 11. Pharmacies 23

24 RETAIL OPERATIONS- Cont Requirements 1. Signed lease agreement 2. Approved land use 3. Evidence of sustainable market 4. Good credit racng for promoters 5. Good security to share risk 24

25 SERVICES OPERATIONS These include; 1. Hotel and Tourism 2. Catering 3. ConstrucCon 4. Repairs of motor vehicles 5. Laundry & Dry Cleaners 6. Funeral Parlours 7. Gardening & Land scarping 25

26 SERVICES OPERATIONS (Cont ) 8. Hair & Beauty Saloons 9. Arts & Cra;s 10. Medical Services 11. Phone Shops 12. Recycling Services 13. Upholstery 14. Sewing & Knilng 15. Security Services 26

27 SERVICES OPERATIONS (Cont ) 16. Driving Schools 17. PrinCng & Publishing 18. Engineering Services 19. Video ProducCons Services 20. IT Systems 21. Travel Agencies 22. Insurance, Debt Recovery and Glass works etc 27

28 SERVICES OPERATIONS (Cont ) Requirements 1. Signed lease agreement 2. Approved land use 3. Evidence of sustainable market 4. Good credit racng for promoters 5. Good security to share risk 28

29 PROPERTY LOANS ConstrucIon loans Loan used for the construccon of property or to complete a parcally developed or incomplete structure. 29

30 ConstrucIon loans Requirements 1. Approved Building Plans 2. Bills of QuanCCes from a cercfied/ cercfied QuanCty Surveyor to juscfy the request 3. Three quotacons from 3 ConstrucCon Companies (labour and Material) 4. Tenant profile to demonstrate sustainability of project income. 30

31 Property Purchase Loans A loan used for the purchasing of an exiscng property Requirements 1. Offer of sale/ Deed of sale 2. Copy of Cgle deed 3. ValuaCon Report 4. Structural Survey Report 5. Tenant profile 6. Approved plans if alteracons are to be made. 31

32 Extension Loans Loans used for extension of property Aim at increasing scope of the building Improve on the earnings capacity RenovaCng the property 32

33 Extension Loans (Cont ) Requirements 1. Approved Building Plans 2. Bills of quancces 3. At least 3 quotacons from ConstrucCon Companies (labour & Material) 33

34 Business Advisory services Coverage newly financed projects projects in arrears those requiring specialist skills; or those requiring some invescgacon 34

35 Service Delivery CLIENT SERVICE CENTRES Head Office Gaborone Gaborone Palapye Francistown Maun Ghanzi Service Delivery Kanye Molepolole Selebi Phikwe 35

36 CEDA HEAD OFFICE Private Bag Gaborone Tel: Fax:

37 Conclusion We remain an interested and willing partner in the development of Botswana That said, we scll have a responsibility to revolve the fund so that more of our ciczens can have a bite at this cake 37

38 Thank you END 38