Entrepreneur
Larry Alton says entrepreneurs face many challenges in today’s
ultra-competitive business world. “Entrepreneurship comes with a host of
challenges, rewarding challenges, but harsh challenges nonetheless.” He says
although the potential rewards for entrepreneurship are great, starting a new
business at a young age is especially fraught with risk. For younger people,
the challenges are unique, multiplied and particularly difficult to overcome.
Lack of experience, inadequate financial resources, and a lack of
self-confidence all contribute in one way or another to make it tougher for a
young entrepreneur than an older counterpart.
Almost all new
ventures require seed capital to support the business through the first rocky
months or even years until it can generate cash and turn a profit. This initial
investment may come from several sources such as personal savings, love money
or soft loans from family and friends, venture capital and angel investors as
well as government grants and subsidies.
In small
developing economies like Botswana, innovative and talented entrepreneurs
struggle to find seed funding from local investors. The Bloomberg U.S. Startup
Barometer points to rigid regulations, lagging economies and the high risks of
doing business in Africa as factors responsible for the low appetite of venture
capitalists and angel investors in these markets. Botswana’s appeal for backup
and risk capital for startups is no different.
To close this
gap, the government of Botswana in line with the country’s key national
priorities of spearheading the drive to using innovation as a lever for
economic growth, established Botswana Innovation Hub to coordinate the
establishment of a functional and integrated national innovation ecosystem. Key
to this development is the creation of a National Innovation Fund that promotes
innovation through technology, products and business development in the private
sector by providing cash grants to companies and organisations registered with
Botswana Innovation Hub.
Established
under the Finance Management Act. Statutory Instrument Number 93 of 2017, the National
Innovation Fund was created to close the existing gap in early stage financing
for key projects of national relevance in the private sector. The fund will
specifically, provide cash grants to companies or organisations registered with
the Botswana Innovation Hub which may subcontract part of the development work
to universities and research organisations. In addition, the National Innovation
Fund serves to encourage companies and organisations awarded funds to transfer
skills to citizen employees by providing cash grants to be utilised for
institutional training and on the job training programmes.
To this end, a governance
structure for the administration of the National Innovation Fund has been set
up with Botswana Innovation Hub assuming the secretarial role and administrative
office of the Fund and a National Innovation Fund Committee has been appointed
to provide crucial oversight role in the Funds establishment and
implementation.
Speaking at the
announcement of the Committee members, the Minister of Tertiary Education, Research,
Science and Technology, Dr Alfred Madigele said, “Government is spearheading
the drive to use innovation as a trajectory for economic growth. To this end
the establishment of the National Innovation Fund would assist to close a gap
in early stage financing for key projects of national importance.”
“Government has
set aside P12 million pula to be used for funding projects in the current
financial year and we have put in place a robust governance framework to allow
evaluation and awards from this fund,” he announced.
The Minister of Tertiary Education, Research, Science and Technology, Hon. Dr. Alfred Madigele (Seated centre) flanked by DPS MoTE Dr. Kekgonne Baipoledi (L) and MD at Fiducia Services, Dr. Thapelo Matsheka. Standing in the back row (L - R) UB VC Prof. David Norris, Fund Coordinator, Sithembile Dingake, Investment Principal at NORSAD, Oteng Sebonego and Botswana Innovation Hub CEO, Alan Boshwaen.
Not included in the picture is GM Botswana Vaccine Institute, Dr George Matlho.
The National
Innovation Fund Committee consists of five independent members of the public as
well as representation from the private sector and the business community. Deputy
Permanent Secretary in the Ministry of Tertiary Education, Research, Science
and Technology, Dr Kekgonne Baipoledi assumes the Chairmanship of the committee. With a career spanning over 25
years, Dr Baipoledi has previously held various senior positions within government,
specifically at the Ministry of Agriculture where he has held the posts of Head
of National Veterinary Laboratories, Deputy Director, Veterinary Services and
Deputy Permanent Secretary responsible for Technical Services.
General Manager
of Botswana Vaccine Institute, Dr. George Matlho has been roped in from
industry. Dr Matlho possesses vast experience spanning over many years within
the veterinary sector with emphasis on research and business development. He has previously held a number of senior
positions at Botswana Vaccine Institute and Department of Animal Health and
Production.
Dr Thapelo
Matsheka has been appointed to the Committee from the private sector. Dr
Matsheka is currently Managing Director at Fiducia Services Limited. He is an
economist and an academic with vast experience from the University of Botswana
before pioneering the establishment of the government-funded Citizen
Entrepreneurial Development Agency (CEDA) as Chief Executive Officer. He later
moved from CEDA to Aon Botswana as the Managing Director prior assuming his
current position.
Representing
academia is Vice Chancellor of the University of Botswana, Prof David Norris. Previous
to his appointment at UB, Professor Norris was Deputy Vice Chancellor, Research
and Innovation at BIUST. Prof Norris has
more than 20 years in Research and Innovation where he has published extensively
and attracted much research funding. Before his appointment to BIUST, Prof
Norris worked in different positions in Botswana, South Africa and the USA.
Also
representing the private sector on the Committee is Oteng Sebonego. Sebonego is
currently Investment Principal at NORSAD Finance and Founder at CabIT Africa an
innovative venture. He bring on board, broad experience in assessment of
project investments portfolio to ascertain their commercial level readiness. His
experience in business enterprise development spans from both a local and
regional perspective.
Heading the
National Innovation Fund secretariat as Innovation Fund Coordinator is
Sithembile Dingake. Dingake is trained in financial management and has worked
extensively in the banking industry, development and enterprise finance and in
fund management in Botswana and South Africa. Her experience straddles
organizations such as Enablis Finance Corporation, Industrial Development
Corporation of South Africa and Barclays Bank.
Among the
Innovation Fund Committees roles and responsibilities is the approval of the
fund guidelines, procedures for operation of the Fund, approval of grant
application processes and subsequent applications. The Committee will also be
responsible for appointment of special experts, auditors and receiving and
approving of reports from audits, programme evaluation reports and reports on
grant applications and approvals.
Hon. Dr Madigela
said, “The Fund’s grant scheme shall follow an annual plan approved for
implementation each year with agreed set targets. The criteria for funding
shall take into consideration several factors which include Intellectual
Property (IP), sustainability, social impact and scalability among others. He
emphasized that the Fund is intended to provide grant funding to deserving
projects which promote innovation through technology, product and business
development in the private sector.”
Botswana
Innovation Hub target sectors are Mining Technologies, Clean Technologies,
BioTechnologies, Information and Communications Technologies (ICT), Indigenous
Knowledge Systems and Knowledge Intensive Business Services.
Hon. Dr Madigele
urged the Committee to, “Hit the ground running to ensure that the first grants
are disbursed during the current financial year to give financial support to
eligible entrepreneurs in the technology and innovation space.”
