The Chema Chema Fund is an SME loan fund launched by the government of Botswana in partnership with the Local Enterprise Authority (LEA) and the Citizen Entrepreneurial Development Agency (CEDA) to provide Credit through the provision of affordable short-term cashflow loans and startup capital for new entrants in the sector.
In this article, we will provide a comprehensive guideline on the application requirements for the Chema Chema Fund and how to register and apply for funding online.
Target Audience for the Chema Chema Fund
- Informal sector entrepreneurs: Individuals running businesses that are not formally registered but play a significant role in the economy.
- Small business owners: Entrepreneurs and owners of small businesses who require capital to start, sustain, or expand their operations.
- Women Entrepreneurs: Women who own or wish to start a business but face additional barriers in accessing finance due to societal, cultural or economic factors.
- Youth Entrepreneurs. Young individuals looking to enter the business world, who often face high unemployment rates but see entrepreneurship as a viable path to economic independence.
- Groups of enterprising and like-minded individuals who aim to harness and leverage the power of collective trading.
Read Also: Chema Chema Application Portal
Documents and Eligibility Requirements
Applicants who intend to apply for chema chema funding must meet the eligibility requirements and also provide copies of personal and business documents to support their application. For a detailed list of documents and application requirements, check the Chema Chema Fund Guidelines and Application Requirements article.
Chema Chema Fund Online Application Process
Individuals or groups interested in applying for the fund are required to visit the LEA Chema Chema portal and follow these guidelines to apply;
- Visit the LEA Website at https://www.lea.co.bw/
- Click on the Chema Chema link from the website menu
- On the next page, Click on the register button
- Fill out the registration form with your details to create your account
- Enter your Omang Number
- Omang expiry date
- Date of Birth
- Place of Birth
- Click on the verify identify button to proceed
- On the next form, fill out all the required information about your business
- Preview your entries for any errors and correct them
- Click on the submit button to complete your application process
Note: Applicants can also visit the nearest LEA branch to register and apply for funding.
Read Also: BDF Botswana Defence Force Online Application Form
Questions and Answers about the Chema Chema Fund
How much will I receive from the Chema Chema Fund?
The loan amount that an informal business or individual can apply for is dependent on the sector and nature of the business project and it will be capped at a revolving credit limit of P50 000;
What is the Interest Rate for the Chema Chema Loan?
Loans shall attract an interest rate equivalent to the prevailing Monetary Policy Rate (MPR). The current MPR is 2.40% on a simple interest basis; charged once-off.
What is the duration required for me to repay my loan?
Loans secured for working capital needs shall be repaid up to six (6) months (paid in monthly instalments),
Loans secured equipment and/or infrastructure shall be paid up to twelve (12) months (paid in monthly instalments) but exclusive of a three (3) a months grace period,
Can I apply for funding more than once?
Only one loan at a time for the qualified borrowers will be allowed, hence multiple-loan borrowing is prohibited. However, A beneficiary can apply for the second and subsequent loans after having cleared the initial debt.
How will I receive my funding if my loan is approved?
Approved funds will be credited to your preferred financial services facilities including bank facilities, Orange Money, SMEGA, POSO MONEY and My ZAKA. However, terms and conditions will apply based on the nature of the project.
Important Notice
The only institutions mandated to accept applications and process funding are LEA and CEDA. Applicants are however advised to be vigilant and stay away from fraudulent activities.
Contact Information
LEA Number: 0800 155 155
CEDA Number: 0800 600 253
