Thamane’s dominance could be felt in the mini-boardroom, where he sits facing the boardroom door, with his back against a giant window, designed to expose the activities of Gaborone’s Central Business District (CBD). A sight to behold on the third floor of the CEDA executive offices in the heart of the CBD, where one overlooks engrossed taxi drivers, contractors perched dangerously mid-air, balanced on a crane, and of course the exuberant vendors, hassling for their cash. Thamane is not interested in all that hustle and bustle; he gets straight to business.
“Please sit on the side of the door and face that window, my boss hates looking behind his shoulder, when the door keeps on opening,” Anno Tshipa says, when she ushers this publication into the boardroom. She is Thamane’s Head of Marketing and Communications, one of the key executive managers, trusted by the CEO. On his entrance, he oozes confidence, quick pacing, like a man in a rush. He easily takes over, leaving no room for his spokesperson to formally introduce him. His authority, gives an impression that he is a doer, a go-getter. This is a man who took over CEDA captainship in January 2011, and after his five year contract, he managed to secure another five year contract by January last year, a sign that his masters want him to keep doing what he is doing and can actually trust him with around P300 million in subvention funds CEDA receives annually.
Thamane believes more could be done at CEDA to develop the lives of Batswana. He is of the view that while funding large scale business is good for the economy, those large businesses should be built from a micro level. A belief he put into practice shortly after he secured a new five year contract in 2016. Thamane immediately introduced a micro-finance product, and set aside a P20 million fund for the product. Dubbed ‘Mabogo Dinku’, the product allows micro-entrepreneurs to apply for loans of up to P150, 000 payable in three to 12 months to fund working capital and asset purchases. He says it is a project spear-headed by his Chief Operations Officer (COO), Andrew Madeswi, who enters the boardroom on cue, to join the conversation.
The purpose of Mabogo-Dinku is to provide Batswana with subsidized loans for various micro-enterprises to enable citizen participation in enterprise development. The product is issued through a group methodology of a minimum of five and maximum of 15 people. It has easy application procedures, no collateral required, shorter turnaround time, and flexible repayments according to the CEDA boss. He said it is a product geared to assist with poverty alleviation, financial inclusion, economic empowerment, job creation as well as women and youth Empowerment.
Government, says only 389 665 people are formerly employed in Botswana, however through the national accounts office, Statistics Botswana, only 19 percent of Botswana’s 2.2 million people are unemployed. Thamane says a capital investment loan of P20 000 could develop socio-economic lives, and these are the people who may one day grow into larger businesses. While Mabogo Dinku was launched towards the end of last year, its demand has been overwhelming, according to the CEDA boss.
In a short space of time, CEDA has already financed 214 people as a collective to the tune of P2.4 million. “More will be funded, because we have so far received lots of applications for Mabogo Dinku,” Madeswi chips in. The chief of operations said that before the process of funding, interested applicants are first trained for a period of 3 to 6 weeks before their applications can be processed and funds released. He advised that, a throng of applicants are currently undergoing training. Thamane further added that CEDA may need to increase the Mabogo Dinku fund, depending on the demand for funding.
What excites Madeswi the most in that the product is being utilized primarily by women, who are economically marginalized. To him, CEDA in this way is contributing to the empowerment of women in Botswana. Of the P2.4 million approved, Madeswi said that 88 percent of the money availed so far was used towards financing women.
Further, 35 percent of people who have been financed are youth, which Madeswi said will come a long way in addressing youth unemployment. A considerable portion of the 19 percent of unemployed Batswana are young people. Interestingly, in spite of the demographics and market the rate of repayments on the micro-finance loans has been pleasing, “We have a 112 percent collection rate, arrears are only at 3 percent,” he said.
The agency is not only doing well in its latest product according to Thamane but generally too, even where CEDA finances large scale enterprises, he said a 73 percent success rate has been maintained for the past five years. “This means that 73 percent of all businesses we financed are able to sustain themselves within the first three years, the most critical stage in any business,” added Thamane.
As at January 2017, CEDA had approved P420.6 million, on over 633 projects.
The agency as at January 2017 had received 1123 applications across all the branches (excluding Mabogo Dinku), meaning 490 were either rejected or applicants are still being considered.
“In percentage terms 56 percent of projects submitted are approved here in CEDA, against an approval rate of 24 percent for Banks and commercial entities,” Thamane noted.
Government in the last financial year gave CEDA a subvention of P280 million, the money which the agency was to use to fund entrepreneurs in 2016/17 financial year. Thamane is amused by the fact that CEDA, under his stewardship has managed to fund businesses to the tune of P420.6 million, which means that on top of the P280 million government grant, the agency independently raised P140 million.
“This is the money we make as collections on loan repayments,” Thamane posits. To him, CEDA was established as a development fund, of which profitability was not within its mandate. An important stance given the shift by government from other social safety net parastatals.
“However, our profits are judged by the socio-economic trail, which our financing leaves. The CEDA captain emphasises that it is CEDA which funded all Wimpy fast food outlets in Botswana as well as the likes of The Braai Place, which are entities that not only pay tax but also employ Batswana.
He has been with CEDA since 2003 and has progressed over time in different Management roles in the Operations Unit.
Amongst his various roles, Thamane was integral in the formation of the Young Farmers Fund in 2007 where he staffed and trained the team in the department, set up procedures and processes and subsequently appointed to head the Agribusiness sector in early 2009.