The Citizen Entrepreneurial Development Agency (CEDA) has said it is adjusting its strategy to sustain support for citizen-owned businesses as government liquidity pressures begin to affect the growth of its funding portfolio.
During a question-and-answer session in the National Assembly on April 8, the minister of trade and entrepreneurship honourable Tiroeaone Ntsima outlined how the agency is balancing strong funding performance with the reality of tighter public finances.
CEDA, established in 2001 to promote citizen entrepreneurship and economic diversification, has invested P696 million into 1,716 businesses in the 2025/26 financial year up to December 2025. The funding has created 3,109 jobs and helped maintain a further 1,569 positions, highlighting the agency’s continued role in supporting employment and small and medium-sized enterprises (SMMEs).
On the collections side, the agency recovered P814 million and generated P207 million in revenue, signalling improved repayment performance and financial sustainability.
However, the update acknowledged that government liquidity challenges are now influencing CEDA’s growth trajectory and the collectability of loans. The agency said these fiscal pressures have prompted a shift in strategy to ensure long-term sustainability while continuing to fund entrepreneurs.
A key response has been the introduction of a project dubbed “Collection Ramp Up,” launched in August 2025 to address rising non-performing loans and strengthen cash flow. Since its inception, the initiative has recovered P226 million.
CEDA is also working to reduce reliance on government funding through a resource mobilisation drive and increased equity participation in high-performing projects. The agency has introduced an Environmental, Social and Governance (ESG) framework as part of this transition, signalling a broader shift from being primarily a lender to becoming a more diversified development finance institution.
The strategic shift is anchored in a five-year corporate plan titled Katlego ya Mogwebi, which aims to drive inclusive and sustainable financial growth among SMMEs while improving the agency’s resilience.
As part of the new approach, CEDA has adopted a 60/40 funding strategy that will prioritise 60 percent of funding toward high-value, high-impact projects, while reserving 40 percent for development and inclusion-oriented initiatives targeting youth, women, rural entrepreneurs and people with disabilities.
The agency is also pushing a wide range of sector-specific initiatives designed to stimulate economic activity and reduce Botswana’s reliance on imports. These include revitalising distressed manufacturing businesses, launching new agricultural finance products, supporting mining supply chain participation, and promoting local textile production.
The minister told Parliament that the measures are intended to ensure CEDA remains sustainable while continuing to play a central role in job creation, economic diversification and citizen empowerment.
