Page 20 - Noble Magazine • July-August 2020

BUSINESS DEVELOPMENT

Crisis Management

Local Enterprise Authority

(LEA) Response to Covid 19

he advent of the 4IR SUPPORT EXTENDED TO
has introduced business SMMEs BY LEA
disruption as a strategy for
Tmarket entry and penetration. Business Continuity:
The COVID-19 pandemic has however LEA assisted enterprises that supply
brought about disruption on a scale that essential services to procure permits
is unprecedented. At the end of March for their staff, as well as facilitating
2020, LEA conducted a snap survey imports of raw materials for the
to assess the impact of COVID-19 on production of hand sanitisers and
LEA registered SMMES across the LEA medical gowns. Businesses were also
assisted to collaborate so as to optimise
branches country-wide.
resources.
The survey covered 382 enterprises, Market Access
and revealed the following notable
highlights; LEA facilitated enterprises to expedite
the testing and certification of essential
• 63% of businesses surveyed had products at Botswana Bureau of
suspended operations, with an The 142 (37%) enterprises that Standards, to ensure that they could
average reduction in monthly remained operational faced the supply products of the required
revenue of 47%. The 382 enterprises following challenges that jeopardised quality. Thereafter, the businesses
have 2,669 employees, with a total their viability. were supported to secure orders in
wage bill of P5.9 million. the amount of P2 312 519.35 for
• Challenges in importing raw
materials. COVID-19 related goods, ranging from
• The tourism sector, which accounts • Reduced revenue due to COVID-19 hand sanitizers, surgical gloves and
for 27% of the jobs in the survey, related restrictions. masks, face shields, cleaning chemicals
bore the brunt of the impact, with • Inability to pay fixed costs (salaries, as well as foodstuffs and horticultural
a 72% revenue loss in March 2020, rentals, loans etc). produce.
which put 729 jobs at risk.
Access to Financial Relief
Average monthly decline in Employees by sector
revenue in March 2020 Of the 382 SMMEs surveyed, 209
had loans, with a total loan balance
of P130,197,045. Three Hundred
(300) SMMEs have been assisted with
applications to BURS for the wage
subsidy, which helped avert job losses,
especially in the tourism sector, which
accounts for 61% of the loan balance.
A further 19 businesses were assisted
to apply for working capital and loan
repayment holidays at CEDA and
commercial banks.

20 Noble Magazine // July - August 2020