MICRO, Small and Medium Enterprises (MSMEs) are set to receive financing from Boliba Savings and Credit for the next five years, thanks to a partnership signed by the company and the Basotho Enterprises Development Corporation (BEDCO) on Tuesday.
March 18, 2022
2 min read
BEDCO, Boliba pen deal to strengthen businesses
BEDCO CEO, Idia Penane
- BEDCO will support MSMEs with business proposal development
- Boliba to offer micro financing loans allowing businesses to grow
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The two institutions signed a Memorandum of Understanding (MoU) that will see BEDCO organising and training initial 1 000 MSME holders across the country in areas of access to finance, formalisation of businesses, access to market as well as record keeping and how to be bankable among other things.
Understanding of these issues will make it easier for MSME holders to access business loans ranging between M1 000 and M10 000 going forward.
“The two organisations will collaborate on equipping MSMEs with tailor-made solutions based on their specific needs,” BEDCO’s Micro Enterprise Project Manager Lebohang Mafela told a media briefing.
BEDCO will support MSMEs with business proposal development and support while Boliba will support with micro financing loans allowing businesses to grow and scale up their businesses and to also provide financial literacy to them.
Mr Mafela said a research was made prior to this partnership where it was established that issues of access to finance and formalisation of businesses were among the main challenges facing MSMEs in the country.
BEDCO Chief Executive Officer (CEO) Idia Penane said the new partnership was part of what BEDCO did to strengthen small businesses and in line with the organisation’s strategic plan.
“Just like in many other African countries, MSMEs play a bigger role in job creation measures as well as economic emancipation,” she said.
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“However, access to finance remains the main challenge because these small businesses struggle to meet the requirements of the local banks in order to qualify for loans. So we are going to help them with proper training in areas of business plan preparations and other ways of running a business,” said Ms Penane.
Boliba Savings and Credit General Manager, Phethang Mpota said it was encouraging that BEDCO was making efforts to grow and develop small businesses in the form of training.
In the past, he said, the organisation ran a competition to the tune of M300 000 targeting small businesses. However, two out of three businesses that won the competition failed to make an impact due to lack of training among other things.
“This time around things will be better because we are going to deal with people that have undergone training,” said Mr Mpota.
“We are looking to help as many MSMEs as possible as long as they have undergone training.”