Botswana - Apply for CEDA Trade Finance Funding

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Procedure

Apply In-Person

1. The Citizen Entrepreneurial Development Agency (CEDA) was established by the Government of the Republic of Botswana to provide start-up businesses or already developed businesses/projects with assistance in form of (Loan Finance, Property Loans, Equity, Guarantees, and Business Advisory Services (Mentoring and Training). CEDA contact details.
2. Interested applicants who need to assess Trade finance funding (loans) are required to collect and complete the following forms; CEDA Loan Application Form, CEDA Business Plan Form, and Checklist form for the required document. Copies of these forms are available at the inquiries desk at any of the CEDA offices across the country or download it via the CEDA website CEDA Application Forms or directly download it using this Loan Application Form link, Business Plan Form
3. The applicant will be required to submit the certified copies of the supporting documents as mentioned under the “Required Documents” section of this page, in addition to the duly completed application form in all respect to the CEDA office within the business jurisdiction. Any omission of these documents will render the registration process incomplete.
4. Alternative an applicant may prepare a separate business plan, which should contain at least all of the information requested for in the CEDA business plan form and submitted together with a completed loan application form and the supporting documentation.
5. Upon receipt of the application file, the CEDA receptionist/secretary at the front desk will verify if all the necessary information and documentation has been provided and that the applications comply with the selection criteria before registering the application file for assessment and consideration by the CEDA department/unit responsible which is within 14 working days.
6. Applicants will be issued with an acknowledgment slip/reference number as proof of submission of the application.
7. The application will be processed as per the information and documentation provided, that is why applicants are advised to provide sufficient information to enable the CEDA to evaluate the business plan and make its decision.
8. The CEDA will only approve the loan if it’s satisfied that the financial aid will be viable, sustainable, and adding value to the economy.
9. Notice of the decision (Approval, Deferral, or Rejection) for the Loan will be communicated to the client in writing/email/phone.
10. If the loan is approved, the applicant will be required to visit the CEDA office, where the application was lodged and produce a proof of identity document and the approval letter to be validated by the authorized official, the applicant/client will then be required to sign a contract with CEDA and the business plan will form part of the contract.
11. The Access of the loan by the applicant once approved, is normally subjected to pre-disbursement conditions as the CEDA deems fit, once all these conditions have been fulfilled, the loan can start disbursing in accordance with the implementation schedule agreed with the applicant (borrower).
    

Apply Online

1. Interested applicants may submit their application online via the CEDA website Link.
2. The application form will be displayed, fill out all mandatory fields accurately i.e. {Personal details/Corporate Details (If the applicant is a company)/Financial Details}, upload all the supporting documentation as listed on the site, and click on the “Submit” tab.
3. Alternative an applicant may prepare a separate business plan which should contain at least all of the information requested for in the CEDA business plan form and submitted together with a completed loan application form and the supporting documentation.
4. Upon receipt of the application file, the CEDA receptionist/secretary at the front desk will verify if all the necessary information and documentation has been provided and that the applications comply with the selection criteria before registering the application file for assessment and consideration by the CEDA department/unit responsible which is within 14 working days.
5. The CEDA will send the applicant an acknowledgment mail with the Reference number as proof of submission of the application.
6. The application will be processed as per the information and documentation provided, that is why applicants are advised to provide sufficient information to enable the CEDA to evaluate the business plan and make its decision.
7. The CEDA will only approve the loan if it’s satisfied that the financial aid will be viable, sustainable, and adding value to the economy.
8. Notice of the decision (Approval, Deferral, or Rejection) for the Loan will be communicated to the client in writing/phone/email.
9. If the loan is approved, the applicant will be required to visit the CEDA office, where the application was lodged and produce a proof of identity document and the approval letter to be validated by the authorized official, the applicant/client will then be required to sign a contract with CEDA and the business plan will form part of the contract.
10. The Access of the loan by the applicant once approved, is normally subjected to pre-disbursement conditions as the CEDA deems fit, once all these conditions have been fulfilled, the loan can start disbursing in accordance with the implementation schedule agreed with the applicant (borrower).
    

Appeals to the Chief Executive Officer Any person who is aggrieved by the refusal of the department concern to grant the loan may appeal in writing against the refusal to the Chief Executive Officer. When one appeals, they must give reasons for not agreeing with the decision and any other information why their application should be re-considered. CEDA appeal process

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Required Documents

• Company Profile or business brief for new projects.
• Historic financials (for operating projects).
• Financial Projections.
• Company resolution to borrow.
• Certified copies of Shareholders & Directors IDs 6 Personal Balance sheets of Shareholders & Directors.
• Market (i.e Tender awarded/purchase orders/contracts).
• Letter of request.
• CVs of Shareholders & Directors and/or Management.
• Certificate of incorporation.
• Memorandum & Articles of Association
• Form 2 and Form 4 & 5.
• Share Certificates.
• Copy of license to operate the business.
• Quotations from suppliers.
• 6 months bank statements (for existing businesses).
• Tax Clearance Certificate.
  

Office Locations & Contacts

Citizen Entrepreneurial Development Agency (CEDA)
Headquarter Office
Gaborone Branch
Address: CEDA House, Prime Plaza Matante Road & Khama Crescent Extension CBD
Gaborone,
Botswana
Private Bag 00504, Gaborone
Tel: (+267) 3170895
Fax: (+267) 3170896

Molepolole Branch
Address: Plot 470 Main Road, Borakanelo Ward
Molepolole,
Botswana
P O Box 3271 Molepolole
Tel: (+267) 5920000
Fax: (+267) 5915318

Kanye Branch
Address: Plot 1264, Maswabi Complex, Sebonego Ward
Kanye,
Botswana
Private Bag 16 Kanye
Tel: (+267) 5440324
Fax: (+267) 5441109

Palapye Branch
Address: Plot 8717, Unit17, Riverview Mall along A1
Palapye,
Botswana
Private Bag 24
Tel: (+267) 4920279
Fax: (+267) 4920235

Francistown Branch
Address: Plot 323676, Unit 6, 7, 8 Donga, along Marang Road
Francistown,
Botswana
P O Box 1845 Francistown
Tel: (+267) 2412775
Fax: (+267) 2416045

Selibe Phikwe Branch
Address: Plot 6575 Khama Road, Private Bag 190 S/Phikwe
Selibe Phikwe,
Botswana
Tel: (+267) 2622377
Fax: (+267) 2622374

Maun Branch
Address: Plot 730 Tsheko Road, Mall Extension
Maun,
Botswana.
Private Bag 393 Maun
Tel: (+267) 6864169
Fax: (+267) 6864858

Hukuntsi Branch
Address: Plot 158, Unit 7, Macheng Mall
Hukuntsi,
Botswana
Private Bag 16 Kanye
Tel: (+267) 6510170
Fax: (+267) 6510185

Ghanzi Branch
Address: Chelford Complex, Plot 1299 Henry Jackie Road
Ghanzi,
Botswana.
P O Box 792 Ghanzi
Tel: (+267) 6597331
Fax: (+267) 6597595

Kasane Branch
Address: Plot 5085, Rural Admin Centre
Kasane,
Botswana
P O Box 63 Kasane
Tel: (+267) 6250183
Fax: (+267) 6250185

Letlhakane Branch
Address: Plot 10297, Mokgobelele Ward
Letlhakane,
Botswana
Private Bag 55 Letlhakane
Tel: (+267) 2976234
Fax: (+267) 2976523

• CEDA Branch Offices contact/address location details
  
• CEDA website
  

Eligibility

The following qualify to apply for the loan.

• Citizens 18 years and above for both start-up and expanding businesses qualify to apply.
• The purchase of equity share capital in existing registered foreign-owned businesses. This will include:
  • Risk capital finance to enable businesses to acquire other businesses.
  • Management buy-outs and/or the acquisition of businesses or shares in existing businesses that are majority foreign-owned through the financing of the acquisition of shares from the foreign shareholders.
  • Loan finance or a combination of both loans and equity, depending on the financial viability as well as funding requirements. These are also subject to the promoters of the proposed large-scale projects contributing their resources of not less than 10% of the project total cost. CEDA will take a minimum of 26% and a maximum of 49% equity stake in the supported businesses up to a limit of P50 million.
  • Business finance packages involving internal CEDA resources and financing from commercial sources, other financing agencies both from within and from outside Botswana.
• Citizens and joint ventures between citizens and foreigners under the equity component. This invests directly in a company by subscription of new shares (equity partner).
• Citizen-owned businesses with an annual turnover of up to P20 million. Assistance would be in the form of guarantees, letters of credit, and performance bonds.
• Citizen-owned businesses facing foreclosure and seeking to re-finance mortgage loans for land, commercial and industrial property in exchange for a share of equity in their businesses.
• Viable expansions to existing registered majority-owned citizen businesses in all sectors of the economy.
  

Fees

Please consult with the CEDA on the fees charged.

INTEREST RATE

• Loans of up to P500 000 will be charged interest at the rate of 5% per annum.
• Loan exceeding P500 000 up to P4 million will be charged interest at the rate of 7.5% per annum.
• Loans exceeding P4 million will be charged interest at the prevailing prime rate.
  

Validity

The repayment period will depend on the date of receipt of expected money which will be used to clear the debt but will not exceed 12months. Monthly repayments are not usually required, instead, a bullet repayment is made using the received sums of money

Documents to Use

• Loan Application Form
  
• Business Plan Form
  
• CEDA Trade Finance checklist
  

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

The turn-around time for CEDA to give feedback on the loan application is 14 days.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

Please provide other instructions related to the certificate/documents.
e.g. The state office holds birth records since january 1908.

Required Information

PERSONAL DETAILS

• Full names
• Contact details
• Project Description
• Training and Experience
• How much are you applying for
  

CORPORATE DETAILS (IF A COMPANY)

• Name of Company
• Date of Incorporation
• Nature of Business
• Shareholders details
• Two Reference details
• Commercial Bankers details
• Accountants/Auditors details
• Alternative Contact Details (Next of kin not living with you)s
• Declaration by the applicant
  

BUSINESS PLAN

• How long have you / company been trading for?
• Project Capital Costs details
• Financing Plan details
• Ownership and Management details
• Owners Personal Balance Sheet details
• Project Location
• Production Process
• Target Market/ Market Size/ Competitors details
• Market share your project intends to archive
• Distribution channels
• Supply Channels
  

Need for the Document

• The Citizen Entrepreneurial Development Agency (CEDA) was established by the Government of the Republic of Botswana to provide financial and technical support for business development to promote viable and sustainable citizen-owned business enterprises.
• The CEDA finances viable and sustainable projects according to the sectors of Agri-business, Property, and Manufacturing and Services. Such financial assistance may be as Purchase Order Financing, Invoice Discounting, Factoring, Performance Bonds, Suppliers Guarantees, Bank Guarantees, and other Credit Guarantees.
  

Information which might help

Enter other informations which might help.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

CEDA Guideline

Others

More information which might help people.