Development finance institutions rarely fail loudly. More often, they drift, overextended loan books, weak accountability and declining trust erode their effectiveness long before balance sheets reveal distress.
When Khalala Mokefane assumed office as Caretaker Chief Executive of Botswana’s Citizen Entrepreneurial Development Agency, CEDA, in August 2025, his immediate challenge was not expansion but repair.
“My priority has been to stabilise the institution, strengthen service delivery and refocus CEDA on its developmental mandate,” Mokefane says. Six months into his tenure, CEDA’s trajectory suggests a cautious but deliberate reset, one that favours institutional discipline over headline grabbing disbursements.
At the heart of this shift is governance. Decision making processes have been formalised, performance monitoring tightened and accountability reinforced across the organisation. For an agency entrusted with public capital, such internal reforms are foundational. “The strengthening of accountability and decision making discipline has been the most significant institutional improvement,” Mokefane says.
Financial sustainability has become an equally pressing concern. CEDA’s loan settlement discount policy, introduced under the current leadership, reflects a more pragmatic approach to non-performing loans. Designed to resolve long standing arrears, the policy encourages distressed clients to settle obligations under defined conditions. “It is a structured, engagement driven recovery tool,” Mokefane explains, one that has improved compliance and freed management capacity to focus on viable enterprises.
This recalibration is particularly evident in the SPEDU region, where manufacturing firms have struggled with high operating costs, skills gaps and cash flow pressures. Rather than blanket enforcement, CEDA now applies differentiated risk management. “Our objective is to preserve viable businesses while responsibly managing institutional risk,” says Mokefane. Early identification of stress and targeted restructuring are replacing reactive interventions.
CEDA’s long standing investments in Tutume, over P150 million across 943 businesses, underscore the importance of proximity. Retail, services, agriculture and property development have all benefited, reinforcing local value chains and employment.
Institutional reform has not come at the expense of access. In December 2025, CEDA opened a new branch in Tutume, extending its physical presence in the North East. The move reflects a broader decentralisation strategy aimed at reducing service bottlenecks and strengthening after disbursement monitoring. “We needed to bring CEDA closer to entrepreneurs,” Mokefane says. Early indications suggest improved engagement and responsiveness, particularly among small and micro enterprises.
CEDA’s long standing investments in Tutume, over P150 million across 943 businesses, underscore the importance of proximity. Retail, services, agriculture and property development have all benefited, reinforcing local value chains and employment. A permanent branch, however, allows the agency to move beyond funding toward sustained enterprise support.
That evolution is increasingly central to CEDA’s identity. Advisory services, mentorship, financial literacy and enterprise diagnostics now complement lending. “Capital alone is not enough,” Mokefane argues. “Enterprises need capability as well as funding.” This philosophy aligns with the launch of sector specific products such as the A Di Tsale agricultural finance suite, designed to accommodate production cycles and sectoral risk.
Partnerships further extend CEDA’s reach. Collaboration with government agencies, private sector players and community stakeholders supports market access and coordinated value chain development, reinforcing the agency’s role in Botswana’s broader economic transformation agenda.
Looking ahead, Mokefane’s ambition is clear. “By the end of 2026, CEDA should be firmly positioned as a responsive, sustainable and impact driven development finance institution,” he says. For a country seeking diversification beyond diamonds, CEDA’s quiet reset may prove more consequential than louder reforms elsewhere.
