20 000 register with Chema Chema
The inaugural days of the Chema Chema Fund registration have witnessed an impressive surge in engagement with 12,690 accounts established on the opening day alone.
According to data disclosed by the Local Enterprise Authority (LEA) as of Saturday, April 13th, 2024, the registration numbers continued their upward trajectory, with a total of 19,301 accounts created, out of which 7, 313 registrations were successfully processed and 545 were ready for loan application.
The Chema Chema Fund, with an initial seed capital of P500 million, will offer revolving credit to informal SMMEs, covering start-up costs, working capital, and essential equipment purchases. Loans will be provided under favorable terms, including a once-off interest rate of 2.4 percent and repayment periods of up to 12 months.
LEA Acting Head of Corporate Affairs, Boipuso Nyatshane said despite this notable influx, only 1001 registrations were successfully finalized, with over ten thousand left incomplete due to documentation hurdles. “The system is promptly restricted to LEA personnel to ensure effective management.”
She revealed that within the spectrum of registered businesses, 4,752 belong to the informal sector, while 97 are formal enterprises. Predominantly, 63 percent of informal businesses represent pre-startups—individuals with burgeoning business ideas.
Meanwhile, 37 percent of successfully registered informal businesses are already operational. According to the figures from LEA, the demographic breakdown of successful registrations depicts dominance of female led businesses, with females constituting a majority at 67 percent compared to males at 33 percent. Additionally, youth participation stands at an encouraging 38 percent of total registrations, underscoring significant interest from this demographic segment.
However, during the first day when the system was open to public for personal registration, it became sluggish and restricted public access. To address this, Nyatshane said the registration system has been exclusively allocated to LEA staff and designated agents. “To streamline the process and alleviate congestion at its branches, LEA has encouraged registrants to submit necessary documents via WhatsApp or email.
Moreover, physical forms are being disseminated, complemented by the deployment of 58 mobile registration agents nationwide to extend registration services to areas lacking LEA branches plus an additional 10 contact center agents to deploy specifically to handle WhatsApp and email submissions.” In a concerted effort to amplify awareness of the Chema Chema Fund's objectives and guidelines, LEA, in collaboration with CEDA, is poised to embark on a comprehensive countrywide roadshow.
This strategic initiative aims to directly engage communities, with LEA facilitating onsite registrations during the roadshow events. Administered jointly by CEDA and LEA, the fund aspires to catalyze the transformation of the informal sector by furnishing financial support to small businesses and entrepreneurs. Through the provision of affordable short-term loans capped at P50,000. 00, the fund endeavors to stimulate economic activity, fortify infrastructure, and nurture the growth of small enterprises across the nation.