Citizen Entrepreneurial Development Agency (CEDA) has officially drawn the curtain on its Chema Chema programme, marking the conclusion of one of its most high-profile interventions aimed at expanding access to finance within Botswana’s informal sector.
Launched in April 2024 under Presidential Directive CAB 35A/2023, Chema Chema was introduced as a rapid-response citizen empowerment initiative designed to support micro businesses, informal traders, youth entrepreneurs, small-scale farmers, and service operators who traditionally struggled to access funding through conventional financing channels.
Internal programme data shows that demand for the facility was immediate and significant. Over a 10-month period, CEDA received 63,886 applications valued at more than P770 million from across Botswana, reflecting the scale of unmet financing demand within the grassroots economy. By February 2025, 35,283 applications had been approved at a value of P378.9 million, with services accounting for the majority of approved applications, followed by agribusiness and manufacturing.
When operational expenses and approved funding in the pipeline are taken into account, the programme’s total financial exposure climbed to approximately P490 million, making Chema Chema one of the largest interventions targeted at Botswana’s informal economy.
Internal reports show that while government had disbursed P250 million toward implementation, total utilisation on funding and operational costs had exceeded P286 million by February 2025, resulting in a funding deficit of over P36 million.
Despite its reach, the programme also faced operational and policy challenges. Questions emerged around repayment performance, disbursement delays, sustainability of the loan model, and the institution’s ability to process the overwhelming volume of applications.
By February 2025, CEDA reported that 26,737 applications valued at over P344 million remained in process and undecided when a Presidential Directive halted new applications and ordered the transition of Chema Chema from a loan facility into a grant-based scheme.
Financially, the programme also placed pressure on the Agency. Internal reports show that while government had disbursed P250 million toward implementation, total utilisation on funding and operational costs had exceeded P286 million by February 2025, resulting in a funding deficit of over P36 million. Collections on the fund stood at just over P5 million during the same period, which were refunded to beneficiaries to fulfil government’s promise to turn Chema Chema into a grant.
As part of its transition, CEDA has also confirmed the insourcing and redeployment of 93 consultants into new roles within the institution, in a move aimed at preserving institutional capacity while repositioning the organisation for its next phase.
Speaking on the closure of the programme, the CEDA Caretaker Chief Executive Officer said Chema Chema offered valuable lessons for both the institution and Botswana’s broader social enterprise development initiative.
CEDA is expected to unveil a new suite of enterprise support offerings in the coming months, targeting youth-led ventures, innovation-driven businesses, and commercially scalable citizen enterprises as Botswana intensifies efforts toward economic diversification and inclusive growth.
“Chema Chema represented an important attempt to widen access to funding and economic participation for Batswana operating within the informal sector. While there are lessons to be drawn from the programme, it created opportunities for many individuals and small businesses that previously had limited access to finance and structured business support,” said the Caretaker CEO. “CEDA expresses its appreciation to all entrepreneurs, implementing partners and government, our great stakeholder, who entrusted the Agency with the implementation of Chema Chema.”
The CEO added that CEDA was now focused on designing stronger and more sustainable enterprise support models.
“As we close this chapter, the Agency remains committed to its mandate of developing sustainable citizen owned enterprises. Our responsibility is to build innovative, smarter support mechanisms that balance access to funding with stronger accountability, mentorship, business discipline, and long-term commercial sustainability.”
CEDA is expected to unveil a new suite of enterprise support offerings in the coming months, targeting youth-led ventures, innovation-driven businesses, and commercially scalable citizen enterprises as Botswana intensifies efforts toward economic diversification and inclusive growth.
