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Co-funded by the European Union

Facilitating Formalisation of Women-Led Businesses in Botswana

Location

Botswana

Topic

Access to Finance, Development Finance Institutions, Women's Economic Empowerment

Status

Completed

Year

2022-2023

Context

In Botswana, around 25.8% of the country’s 510,953 wage-earners are employed in the informal sector (as of 2016). On top of this, over 50% of informal sector businesses are women-owned, and 67% are at least partially women-owned. The COVID-19 pandemic had an overall negative impact on business activity, especially on informal enterprises. While a large informal sector impacts tax revenue for the public purse, the workers tend not to have the same protection and benefits as those in the formal sector (e.g. sick leave, minimum pay, advance notice of dismissal, minimum standard work conditions).

 

Therefore, one of the priorities of the Government of Botswana is to formalise more employment and to create decent work conditions, in particular, for women and youth. Reporting to the Ministry of Entrepreneurship, the Citizen Entrepreneurial Development Agency (CEDA) provides different financial products, and non-financial support to promote successful citizen enterprises. It now seeks to develop a more structured approach to supporting women in the informal sector towards decent work, greater productivity and readiness for formalisation.

Objectives

The ICR Facility through its expertise and technical assistance supported the Citizen Entrepreneurial Development Agency (CEDA) to strengthen female entrepreneurship, especially in the informal sector.

This was achieved by:

  1. Conducting a technical study on scoping the challenges and needs of women entrepreneurs;
  2. Developing a CEDA framework (including suitable products) to support women-led businesses in the informal sector towards formalisation and provision of decent work;
  3. Equipping CEDA staff with the knowledge and skills to use that framework with the help of the support session;
  4. Galvanising support to improve the business environment for women by incorporating CEDA into the existing stakeholder engagement structures.

Results

The intervention has provided clear evidence about how women-owned and women-led businesses in Botswana’s informal sector perceive the formalisation process and make decisions around the benefits or otherwise of formalising their business, thus complementing the informal sector mapping initially carried out with more qualitative insights.

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