Africa-Press – Lesotho. Basotho Enterprises Development Corporation (BEDCO) in collaboration with Enygma Ventures have signed a Memorandum of Understanding (MoU) on ‘Access to Finance Project’ in an
effort to enable Micro, Small and Medium Enterprises (MSMEs) to access funding in the form of Venture Capital/Equity. MoU was signed in reaffirming and strengthening the partnership between two organizations to ensure that the
two are able to grow and scale up the MSME sector in Lesotho through provision of finance and capital solutions for businesses. Speaking at the signing
ceremony BEDCO Chief Executive Officer (CEO) Idia Penane said BEDCO’s primary role in this collaboration is to mobilize and support MSMEs in their business
proposals preparations and for them to be investor ready. She stated that BEDCO will support MSMEs with business proposal development taking into consideration
the specific requirements of Enygma Ventures. “This will be done through organizing linkage platforms as a way for investors to meet with MSMEs. It will
also support MSMEs post funding with adherence to requirements as set out in the funding agreements through various interventions which include business
coaching, funds management support and incubation,” she explained. Penane informed that the primary basis of the 2021/25 BEDCO strategy is the Government of Lesotho
(GOL)’s National Strategic Development Plan (NSDP) II and the MSME policy. She
said the strategy particularly draws from the first Key Priority Area (KPA) of the NSDP II, “enhancing Inclusive and Sustainable Economic Growth and Private
Sector Job Creation. The strategy recognizes the significant role that entrepreneurship plays in the achievement of the NSDP II and therefore aims to provide a more focused approach to the development of Basotho enterprises,
based on the NSDP identified priority areas,” she informed. Penane noted that the MSME sector is crucial to the development and sustainability of the Lesotho economy
and in most countries they contribute about 70% towards job creation. She said Lesotho MSMEs are however faced with numerous challenges that inhibit their
growth and impact. She said again access to finance and capital has been identified as one of the biggest constraints that these MSMEs are faced with.
According to Penane this initiative will collectively assist identified MSMEs address their access to finance challenges and this will in turn enable BEDCO to
contribute to the economic growth of Lesotho through an increased number of sustainable MSMEs that contributes to job creation and poverty alleviation in
Lesotho. Conferring to Principal Enygma Ventures Lelemba Phiri, said Enygma Ventures is one of the first Venture Capital companies identified for collaboration to finance local
MSMEs. She added that it is a Venture Capital fund focused on investing in female entrepreneurs and women founders, focused on Southern Africa or Southern
African Development Community (SADC) region. Phiri said the US-based fund is a unique purpose-driven investment fund, aimed at empowering, mentoring, and
capitalizing outstanding female entrepreneurs in the region. Phiri explained that Enygma Ventures will then support MSMEs by ensuring that they get funding to grow and scale up their business ventures.
“This will be done by offering adequate support to meet investor requirements. MSMEs will receive capital injection ranging from a minimum of M365 000.00 up to M14 000 000.00 in exchange for an agreed stake in the business,” she stated.
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