Up to M14 million in capital for MSMEs

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By Lineo Ramatlapeng

Basotho Enterprises Development Corporation (BEDCO) and Enygma Ventures (Africa Trust Group)—a venture capital investment company—have partnered in an effort to grow and scale up Micro, Small, and Medium Enterprises (MSMEs) in Lesotho through the provision of finance and capital solutions for businesses.

KDNews understands that the partnership will see BEDCO connect through Enygma MSMEs to capital from about M365 000 to M14 million in exchange for shareholding to venture capitalists.

The partners, BEDCO’s Chief Executive Officer Ledia Penane said will ensure that MSMEs have access to funding through non-traditional means but through the attraction of venture capitalists.

Lelemba Phiri, Enygma’s Principal said the MSMEs that BEDCO will connect to the program will receive capital injection ranging from a minimum of M365 000 up to M14 000 000 towards their businesses in exchange for an agreed stake in the business”.

Penane and Phiri signed a memorandum of understanding (MoU) reaffirming and strengthening the partnership between their two organizations.

Enygma Venture is a venture capital fund focused on investing in female entrepreneurs and women founders, focused on Southern Africa of the SADC region.

In a statement, the agencies said this partnership will ensure that the two are able to grow and scale up the MSMEs sector in Lesotho through the provision of finance and capital solutions for businesses.

Penane said the MoU will enable them to collectively assist identified MSMEs tackle their access to finance challenges.

She added that this will also enable BEDCO to contribute to the economic growth of Lesotho through an increased number of sustainable enterprises that contribute to job creation and poverty alleviation.

The collaboration, Phiri said is penciled to last five years and its contract is open to renewal as they are committed to working with partners.

Phiri explained that Enygma will support enterprises by ensuring that they get funding to grow and scale up their business ventures.

“This will be accomplished by offering adequate support to meet investor requirements,” she said.

BEDCO’s primary role Penane said is to mobilize and support small businesses’ business proposals preparations and investor readiness, it will also support proposal development considering the specific requirements.

Phiri added that this will be done through organizing linkage platforms as a way for investors to meet with small businesses.

Penane said the MSME sector is crucial to the development and sustainability of the country’s economy while in most countries they contribute about 70% towards job creation; Lesotho MSMEs are however faced with numerous challenges that inhibit their growth and impact.

“The US-based fund is a unique purpose-driven investment fund aimed at empowering, mentoring and capitalizing outstanding female entrepreneurs in the region,” said Phiri.