In the ever-evolving landscape of economic development, innovative initiatives are pivotal
to fostering sustainable growth and creating avenues for job creation. The recently unveiled
Chema Chema Fund, a brainchild of the Minister of Finance, Peggy Serame, emerges as a
beacon of hope for Botswana's informal sector.
The Minister's announcement of the P200 million Chema Chema Fund in the 2024-25
budget speech reflects a strategic move towards unlocking the latent potential within the
informal sector. It is indeed a laudable step that aligns with the ethos of economic
diversification and inclusivity. As a financial institution deeply invested in the growth of
Botswana, FirstCred Limited recognizes the profound impact this initiative can have on
entrepreneurship and job creation.
The preliminary data released by Statistics Botswana, indicating a 3.2% contribution to
economic growth from the informal sector in 2023, underscores the sector's untapped
potential. Minister Serame's foresight in establishing the Chema Chema Fund aims to
catalyze fundamental transformation within the informal sector. This injection of capital will
provide much-needed financial support to budding entrepreneurs and small businesses,
with FirstCred leading through supporting individual employees of the said sectors with
house hold financial instruments, thus fostering an environment conducive to sustained
economic development.
The Chema Chema Fund is not just a financial instrument; it is a testament to the
government's commitment to nurturing homegrown talent and fostering economic
resilience. By empowering the informal sector, we pave the way for increased job
opportunities, thereby bolstering the overall economic landscape. It is a strategic move that
recognizes the dynamism and adaptability inherent in small businesses and entrepreneurial
ventures.
Furthermore, the Minister's announcement of additional initiatives, such as the Intellectual
Property (IP) motshelo scheme and the Intellectual Property ideas incubation center,
reinforces the commitment to indigenous research and innovation. In a rapidly evolving
global economy, protecting and commercializing intellectual property assets is paramount.
These complementary initiatives will serve as catalysts for creativity, innovation, and,
ultimately, economic prosperity.
In conclusion, the Chema Chema Fund represents a forward-looking approach to economic
development, acknowledging the pivotal role of the informal sector. As FirstCred Limited is
not just supports the growth of businesses across Botswana, we are forced to innovate at
individual employer level as we applaud Minister Serame's visionary steps towards a more
robust and diversified economy. The Chema Chema Fund, with its initial capital injection, is
not just an investment in the informal sector; it is an investment in the future of Botswana.
Let us collectively embrace and endorse this transformative initiative for the greater
economic good of our nation.
