FALSE UDC PROMISE
The Citizen Entrepreneurial Development Agency (CEDA) has clarified that the Chema Chema Fund will remain a loan initiative, as outlined in its governing guidelines.
This is despite President Advocate Duma Boko's promise to turn Chema Chema Fund into a grant after his electoral victory. There are reports that some beneficiaries have been stalling on repayments hoping to hear the official announcement on the cancelation of their loans as promised by the president, but CEDA has stated that all shall service their loans as per their contracts, unless an unlikely executive order is made which will still come with a plethora of other complications.
Responding to a questionnaire from The Midweek Sun, CEDA Marketing Manager, Neo Tumelo, reiterated that the Fund is structured as a short term loan program designed to provide affordable financing to citizen informal businesses.
He explained that beneficiaries were informed of repayment obligations from the outset, ensuring transparency in the loan process.
"Chema Chema is currently structured as a loan, as detailed in the Chema Chema Fund Guidelines, the guidelines outline the loan amount, repayment period, instalment amount, and the date of the first instalment.
“Currently, some clients are repaying their loans, and some have even settled their first loans. All beneficiaries are covered with credit life insurance, and the annual premium is part of the loan disbursement," he stated.
According to the guidelines, every beneficiary receives a detailed loan offer letter before signing their agreement.
The letter specifies the loan amount, repayment terms, and the date for the first instalment.
"This process ensures (that) beneficiaries fully understand their obligations, including compliance with repayment terms," he said.
Tumelo also pointed out that compliance measures include regular monitoring visits, calls, reminder messages, and letters aimed at keeping beneficiaries on track.
CEDA’s role as an implementing agency is to administer the Fund effectively while maintaining accountability.
While the current government has suggested turning the initiative into a grant, Tumelo explained that CEDA has not yet received formal guidance on this matter.
He stated that any changes in policy would require clear directives from the government.
"Should the Chema Chema Fund be transformed into a grant, beneficiaries who have already repaid their loans would be entitled to refunds," Tumelo stated.
He also stated that such a shift would impact CEDA's operations, requiring a complete review and restructuring of contracts.
He noted that this transition would necessitate adjustments in the working arrangements of the 180 young graduates currently employed under the initiative.
When asked about the funds already disbursed, he revealed that CEDA has distributed P235,150,704 to clients out of a total allocation of P250 million.
Some beneficiaries have successfully completed their loan repayments, while others continue to meet their obligations.
Tumelo assured that all beneficiaries are protected by credit life insurance, with the premium deducted directly from their loan disbursements.
Regarding complaints from beneficiaries who felt they received less funding than expected, as previously shared with The Midweek Sun, Tumelo encouraged them to utilise CEDA’s grievance procedures.
"Clients can engage with branch management if they believe their funding requests were unfairly assessed. This ensures a fair and transparent process for addressing concerns," he explained.
During his campaign, President Boko assured Batswana that the Chema Chema Fund would not burden them with debt and promised to turn it into a grant.
However, Minister of Trade and Entrepreneurship Tiroeaone Ntsima recently confirmed in Parliament that Chema Chema remains a loan.
This is despite President Advocate Duma Boko's promise to turn Chema Chema Fund into a grant after his electoral victory. There are reports that some beneficiaries have been stalling on repayments hoping to hear the official announcement on the cancelation of their loans as promised by the president, but CEDA has stated that all shall service their loans as per their contracts, unless an unlikely executive order is made which will still come with a plethora of other complications.
Responding to a questionnaire from The Midweek Sun, CEDA Marketing Manager, Neo Tumelo, reiterated that the Fund is structured as a short term loan program designed to provide affordable financing to citizen informal businesses.
He explained that beneficiaries were informed of repayment obligations from the outset, ensuring transparency in the loan process.
"Chema Chema is currently structured as a loan, as detailed in the Chema Chema Fund Guidelines, the guidelines outline the loan amount, repayment period, instalment amount, and the date of the first instalment.
“Currently, some clients are repaying their loans, and some have even settled their first loans. All beneficiaries are covered with credit life insurance, and the annual premium is part of the loan disbursement," he stated.
According to the guidelines, every beneficiary receives a detailed loan offer letter before signing their agreement.
The letter specifies the loan amount, repayment terms, and the date for the first instalment.
"This process ensures (that) beneficiaries fully understand their obligations, including compliance with repayment terms," he said.
Tumelo also pointed out that compliance measures include regular monitoring visits, calls, reminder messages, and letters aimed at keeping beneficiaries on track.
CEDA’s role as an implementing agency is to administer the Fund effectively while maintaining accountability.
While the current government has suggested turning the initiative into a grant, Tumelo explained that CEDA has not yet received formal guidance on this matter.
He stated that any changes in policy would require clear directives from the government.
"Should the Chema Chema Fund be transformed into a grant, beneficiaries who have already repaid their loans would be entitled to refunds," Tumelo stated.
He also stated that such a shift would impact CEDA's operations, requiring a complete review and restructuring of contracts.
He noted that this transition would necessitate adjustments in the working arrangements of the 180 young graduates currently employed under the initiative.
When asked about the funds already disbursed, he revealed that CEDA has distributed P235,150,704 to clients out of a total allocation of P250 million.
Some beneficiaries have successfully completed their loan repayments, while others continue to meet their obligations.
Tumelo assured that all beneficiaries are protected by credit life insurance, with the premium deducted directly from their loan disbursements.
Regarding complaints from beneficiaries who felt they received less funding than expected, as previously shared with The Midweek Sun, Tumelo encouraged them to utilise CEDA’s grievance procedures.
"Clients can engage with branch management if they believe their funding requests were unfairly assessed. This ensures a fair and transparent process for addressing concerns," he explained.
During his campaign, President Boko assured Batswana that the Chema Chema Fund would not burden them with debt and promised to turn it into a grant.
However, Minister of Trade and Entrepreneurship Tiroeaone Ntsima recently confirmed in Parliament that Chema Chema remains a loan.
