CEDA & BAMB ENTER INTO MOA

The Citizen Entrepreneurial Development Agency (CEDA) in partnership with Botswana Agricultural Marketing Board (BAMB) have recently (27/08/19) signed a Memorandum of Understanding (MOU) in an effort for both parties to seek ways in which they can beneficially fulfil their respective mandates. CEDA CEO, Mr. Thabo Thamane and Mr Leonard Morakaladi, CEO of BAMB, represented the two institutions at the signing of the MOU.

The aim of this MOU is to establish a framework for developing citizen entrepreneurs and sustainable citizen owned businesses and assisting farmers to improve production in both quality and quantity. The scope of the MOU includes, but is not limited to areas of joint activities, such as:

• ensuring that risks associated with defaulting loan payments to CEDA are minimized;
• reduce transaction costs for both institutions through shared projects visits;

• ensuring reliable supply of grain from farmers to BAMB;
• guaranteed market inputs for BAMB;
• easier and timely access to seasonal funding in order to assist farmers who are committed to arable farming;
• assisting and jointly working together on structuring of seasonal loans for the benefit of both parties;
• jointly undertake researches on arable farming and information dissemination;
• assured market for produce under contract production;
• market advisory services; and
• discounts on inputs for CEDA- funded farmers.

In this MOU, BAMB will be largely responsible for:

• providing farming inputs to participating farmers as per the agronomic requirements;
• facilitating timely payment to CEDA in line with the respective Deed of Cessions signed with farmers after receipt of produce from participating farmers;
• maintaining a data base of all participating farmers including the hectares ploughed, the types of crops to be planted and inputs to be required and shall from time to time avail such information to CEDA;
• making regular visits to participating farmers to ensure that they comply with the product delivery agreement.

In support of BAMB, CEDA will be responsible for:

• executing the necessary Deeds of Cessions with participating farmers to facilitate deduction of proceeds from sale of produce by BAMB;
• notifying BAMB upon approval of seasonal loans of participating farmers. In this regard CEDA shall ensure that it has the necessary consents and indemnities by the respective farmers for such disclosure;
• making regular visits to participating farmers to monitor compliance with contractual obligations.

The two entities saw the need to lay a strong focus on dealing with the ever-increasing challenges associated with Dry-land Farming and will work diligently to ensure uptake of the Agricultural Credit Guarantee Scheme (ACGS) set up by Government to assist dry-land farmers with crop cover.  CEDA and BAMB will work hand in hand with Government to fast-track a drought management strategy and incorporate climate change interventions in agriculture, in an effort to introduce drought compliant crops.

CEDA is elated and proud to be taking this transformative journey with an institution such as BAMB as they both aim to make a positive impact to the economy of Botswana. The MOU is for a period of three years.