By Neo Kolane
The Basotho Enterprises Development Corporation (BEDCO) and Boliba Savings and Credit signed a Memorandum of Understanding (MoU) to extend a helping hand to street vendors across the country by enabling them to obtain loans
The MoU was signed on Tuesday by chief executive officer of BEDCO Idia Penane and Boliba Savings and Credit general manager Phethang Mpone. It will remain valid for a duration of five years.
These businesses will be afforded the opportunity to apply for a loan between M1, 000 and M10, 000 which is payable in a year.
Speaking at the event held at the BEDCO premises in Maseru, the micro enterprises project manager Lebohang Mafela said the objectives of the collaborative effort is to assist micro enterprises to access funding in the form of financing.
Mafela saw a need for mobilising support of micro enterprises with bankable and viable business proposal development in order to carry out harmonized capacity building programmes for micro enterprises.
“In the implementation of this project, BEDCO will support micro enterprises with business proposal development and compliance requirements, pre and post funding.
“Both of these activities will take into consideration the specific requirements of Boliba. Boliba will then provide micro enterprises with micro loans to grow and scale their businesses and financial literacy,” Mafela said.
Penane suggested that small and medium enterprises s play a big role in creating jobs and eradicating poverty, but they encounter problems that hinder their sustainability as they lack capital.
She further said at many times entrepreneurs lack the knowledge on how to operate business and as “such people who lend money cannot trust such business to service their debt.”
She added: “All Basotho-owned micro enterprises who have been operating for a minimum of three months are eligible to benefit from the project. The monumental event signified the commencement of the project which will be piloted this year in Maseru, Berea, Mafeteng, Mohale’s Hoek, Leribe and Quthing.”
The project will be rolled-out to the remaining districts after the pilot phase, Penane said.
