24 Nov 2024

Chema Chema initiative has made significant strides in empowering youth of Selebi Phikwe since its inception in April.

As of now, the programme has received 2 071 applications totaling about P29 million with 1 060 applications approved, amounting to almost P12 million while an additional 1 011 applications remain under review.

Minister of Trade and Entrepreneurship, Mr Tiroeaone Ntsima provided insights into the funds performance and its impact on the community, when responding to a question in Parliament on Thursday.

He highlighted that approximately 70 per cent of the approved applications were from women, while men accounted for 30 per cent.

Notably, youth constitute 35 per cent of the beneficiaries, with 367 young individuals receiving funding totaling P4 313 788, Mr Ntsima said and further stated that the fund also allocated P40 000 to assist four individuals living-with-disabilities.

Mr Ntsima stated that 20 per cent of the fund was directed towards expanding informal businesses, while the remaining 80 per cent supported start-ups.

The services sector has received the bulk of funding at 61 per cent, with agribusiness following at 30 per cent and manufacturing at nine per cent, Mr Ntsima explained.

Within the services sector, he said retail businesses were predominant, and a significant portion of informal agribusinesses focused on poultry.

He clarified that the Citizenship Entrepreneurial Development Agency (CEDA) evaluated applications without regard to political boundaries, making it challenging to categorise data by constituency.

However, he noted the positive effects on existing businesses, which had expanded operations, acquired new equipment and assets, and diversified their income streams.

Mr Ntsima remarked that with the support from Chema Chema, informal businesses had improved cash flow, managed to acquire stock and covered rental expenses.

Additionally, he said many individuals previously unemployed had become self-employed, significantly contributing to their household incomes and improving their living standards.

Startups have accessed capital for launching ventures at favorable interest rates, compared to the higher rates typically charged by micro lenders and informal savings groups, Mr Ntsima also stated that small and medium enterprises, which primarily supplied the informal sector, had experienced increased market opportunities and operational enhancements.

This financial backing has allowed informal businesses to engage in local authority supply chains, including school feeding schemes and district council tenders, ultimately benefiting the local economy and enhancing livelihoods, he said.

Chema Chema Fund has notably impacted the densely populated communities of Selebi Phikwe, contributing to a reduction in youth unemployment, as evidenced by the 35 per cent of funds allocated to young, Minister Ntsima said.

He said the programme served as a valuable resource for fostering entrepreneurship and supporting the economic development of the region.

Selebi Phikwe East MP, Mr Kgoberego Nkawana had inquired about the uptake of the Chema Chema Fund in his constituency and the benefits derived from it. Ends