Africa-Press – Lesotho. Basotho Enterprise Development Corporation (BEDCO) has introduced the Market Access Project for Micro, Small and Medium Enterprises (MSMEs), intended to develop sales and distribution channels for improving MSMEs sales
turnover. The program anticipates to achieve an increase in the local footprint of MSMEs products and increase international market penetration. Speaking at the launch on
Thursday, BEDCO Chief Executive Officer (CEO) Idia Penane explained that their mandate is to promote the development of Basotho owned enterprises, indigenous
entrepreneurial skills and enable connection. Penane indicated key activities of the cooperation being to promote enterprises, market access, access to finances,
to facilitate enterprise promotion and market access for Small Medium and Micro Enterprises (SMMEs) initiatives such as access to finances through business
plan competitions. She furthered that SMMEs capacity development provides strong technical skills training and often partners with other organisations to provide technical training on their
behalf. Penane explained that the Covid-19 impact on general business activity hit 74% of the MSMEs where 17% are moderately affected while 5% and 3% are slightly and not affected respectively.
She indicated that Basotho MSMEs seem more resilient to the impacts of the Covid-19 pandemic as 11% of them are likely to shut down in a month (high risk), 20% are likely to shut down in 3 months (Medium Risk), 20%
are likely to shut down in 6 months (Low Risk) and 50% of the businesses do not see themselves shutting down at all (Negligible Risk). She said they adopted a coping
strategy by increasing marketing efforts, online sales, and temporarily reduced employees, implemented customised products and laid off workers. BEDCO Project Manager in
Market Access Tšepiso Mofolo indicated that MSMEs face many challenges worldwide-wide in their daily operations such as lack of access to finance, capacity
constraints as well as access to markets like MSMEs in Lesotho. Mofolo said studies have shown that access to market challenges include geographical barriers, under-developed export markets
and the fact that many of the small business owners in Lesotho undertake very little marketing of their products. He added that in fulfilment of its mandate
to develop Basotho enterprises, BEDCO has initiated the Market Access Project to assist MSMEs to better access markets locally, regionally and internationally.
“The project will assist MSMEs to access markets through business linkages with large businesses (corporates)
and government suppliers, development of sustainable value chains within the MSMEs sector, exposure of MSMEs products to individual buyers through EXPOs,
Flea Markets, and advertising activities, exposure of MSMEs products to international markets in line with Lesotho’s trade agreements through trade fairs, trade missions and international EXPOs,” Mofolo explained.
He said the project will source corporate and government off-takers, capacitate building of MSMEs to meet requirements, identification of aggregators or agents, coordination of
market linkage activities along value chains, coordination of promotional activities (expos, trade, fares, and trade missions), facilitation of agreements between
producers and wholesalers or retailers and coordination of follow-up activities for various players along the value chains. He indicated that the project is expected to deliver improved MSMEs sales turnover, increased market
share and growth towards crafting a new economic pathway for the private sector to play its significant role as a catalyst of the economy of Lesotho. Mofolo stated that Virtual
MSMEs Exposure is expected to start operating from 10th December 2020. “For many years, all expositions and exhibitions have been through physical interaction, where buyers meet sellers, manufacturers, develop
networks and make sales to mention a few. The Covid-19 pandemic has necessitated governments including the Lesotho government to impose strict restrictions including social distancing to curb the spread of the disease,”
the Project Manager said. He said these restrictions have adversely impacted businesses particularly small sectors. He reviewed that in response to these, business communities worldwide have had to come up with more innovative ways of hosting such platforms while ensuring compliance with the set regulations.
“Likewise, BEDCO will host the first of its kind in Lesotho, the 2020 virtual EXPO which will showcase Basotho MSMEs to the local and international market.
The EXPO will also host various webinars where a wealth of information will be shared with MSMEs and attendees on a spectrum of topics in entrepreneurship,” Mofolo described.
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