CEDA launches new product

SHARE   |   Monday, 05 September 2016   |   By Staff Writer
CEDA CEO, Thabo Thamane at the launch of Mabogo-Dinku CEDA CEO, Thabo Thamane at the launch of Mabogo-Dinku

CEDA has introduced a new product into the market which specifically targets micro enterprises called Mabogo-Dinku. The product was launched on Tuesday by CEDA Chief Executive Officer, Thabo Thamane, alongside the agency’s Chief Operating Officer, Andrew Madeswi. The agency has set aside P20 million for the product with add-ons expected, according to the management. Thamane said the product was designed following a study which revealed the need to create a customised microfinance solution for micro enterprises. He said the study identified that the agency’s current requirements to access funding limit the capacity of micro enterprises to fulfil such requirements.


Mabogo-Dinku, which according to Thamane, is expected to provide greater social and economic impact to many Batswana will be delivered Group Methodology. This simply means an individual running a micro enterprise ought to belong to a group with other individuals operating their own businesses in order to undertake activities that will provide conditions to access Mabogo-Dinku. To access funding, such groups need to have a minimum of five individuals and a maximum of 15. The product is expected to address five key issues that have been identified being poverty alleviation, financial inclusion, economic empowerment, job creation and women and youth empowerment. Thamane said it is not just about offering small loans to micro enterprises, but has been designed with unique features. These features include simplified application documentation, no collateral required, shorter turnaround time and group mentoring and training support platform which is said to be mandatory.


The product is also said to improve savings culture and has flexible repayment arrangements. “As the agency, we launch Mabogo-Dinku with a high-level of confidence that it will provide greater social and economic impact to the many Batswana who work very hard to create income for themselves and sustain the livelihood of their families,” said Thamane. CEDA chief operating officer Madeswi said for ease of managing the affairs of the group, CEDA has developed a standard constitution for the members to adopt as the governing framework. He said loan processing forms shall be completed by the member in need of the loan and presented to the group for consideration and endorsement before submission to the agency.


“It is through this process that members of the group co-guarantee the member applying for the loan and this is one of the strength of working together, hence adage of Mabogo-Dinku a  thebana,” he said. Madeswi said the group limit is linked to the amount of savings and as such a group qualifies for 10 times their contribution amount. “The group can increase the amount of loan they qualify for with an increase to the savings but with limitations of financing up to P150,000 per individual in addition to the savings determining factor.’