Citizen Entrepreneurial Development Agency (CEDA) was established by the Government of the Republic of Botswana in 2001 to provide financial and technical support for business development with a view to promote viable and sustainable citizen owned business enterprises.  

The Agency was established to address the need for coherent and holistic support for the development of small, medium and large scale enterprises through the soft window package. CEDA offers funding for start-ups, expansions, stock or working capital in new and existing business ventures. The Agency also offers business advisory services to entrepreneurs in various skills as identified through the needs assessment that is conducted during the monitoring of funded businesses.

The underlying objectives of CEDA are:

• Forster citizen entrepreneurship and empowerment
• Promote economic diversification
• Encourage the development of competitive and sustainable citizen enterprises
• Create sustainable employment opportunities
• Promote the development of vertical and horizontal linkages between citizen enterprises and primary industries in Agriculture, mining and tourism

Our Products and Services comprise of:

• Loans
• Equity
• Credit Guarantee Scheme
• Citizen Entrepreneur Mortgage Assistance Equity
• Invoice discounting/ factoring
• Training and Mentoring

CEDA provides finance or a combination of both loans and equity, depending on the financial viability as well as the funding requirements of the project. However, the loan shall be extended on commercial terms with interest rates charged at prime commercial linked rates depending on the risk associated with the project up to a maximum of P30 million for a period not exceeding 15 years. This offering is offered under the Structured Finance Department.

Previously the management of the Agency’s pioneer equity fund, branded the CEDA Venture Capital Fund, was outsourced to a privately owned fund management company which was given a 10 year autonomous mandate to manage the fund on CEDA’s behalf. This fund was a closedended, general fund capitalized with seed capital to the tune of P200 million.

Types of transactions

• Start-ups
• Early stage investing
• Expansion capital
• Mergers and acquisitions
• Restructuring and turnarounds
• Management buy outs and buy ins

Criteria for Assistance

CEDA assistance will be in the form of financial assistance to citizen entrepreneurs and joint ventures wishing to start, expand or acquire business operations in all sectors. To qualify for assistance the following shall be considered:

• Citizens of 18 years or above
• Viable citizen businesses and joint venture businesses between citizens and foreigners
• Citizen owned businesses facing foreclosure and seeking to re-finance mortgage loans for land, commercial and industrial property in exchange for share of equity in their businesses
• Direct involvement of the shareholder in the project

CEDA plays a critical role in supporting Government to address the issue of poverty eradication, unemployment, youth empowerment and economic diversification.

Since inception, CEDA has funded start-up businesses and expansions to the value of about P2 billion in various sectors of the economy, thus creating an estimated 28 000 jobs for Batswana.

CEDA has actively engaged policy makers over the years on the need to improve access to Government procurement for SMMEs. This has resulted in Government issuing a directive to Central Government, local authorities and parastatals to procure goods and services from local companies, provided pricing is competitive, in order to grow local manufacturing base and support local businesses.

In 2009, Government identified the Economic Diversification Drive (EDD) as an initiative meant to eradicate poverty and create wealth for Batswana.

CEDA is an integral part of the Economic Diversification Drive as a provider of funding and business advisory services to local businesses.