MASERU
SOME 80 entrepreneurs in the textiles, creative sectors and other generic sectors pitched their businesses for a chance to get funding and incubation services under the Competitiveness and Financial Inclusion (CAFI)’s Entrepreneurship Hub and Seed Financing Facility (LEHSFF).
The pitching session last Friday was an opportunity for the entrepreneurs to explain their businesses, in detail, to a panel from each of the four Enterprises Support Organisations (ESOs). They also faced questions about their strategy, financial projections, operations, number of employees and growth prospects.
The entrepreneurs are competing for a US$ 7,000 grant that comes with a six-month incubation per awarded enterprise.
Each ESO will select ten enterprises for the incubation which includes mentorship and coaching support, and training in basic finance, marketing, branding, quality control, standardization, sector-specific technical skills and e-commerce.
They will also provide psychological support to the entrepreneur to cope with the rigours of managing their businesses.
The ESOs are looking for both early stage and established businesses, with priority being those owned by youth and women.
The differences in the specialities of the ESOs were apparent during the sessions last Friday.
Khaya and Snake Nation specialise in incubating businesses in the creative industry while Afri-Expo and Johane Garments focus on textile companies. The SMME Support Network’s interest is general.
Sky Blue Inc, which starts hearing pitches today, focuses on tourism businesses.
The 50 businesses to be selected will be the second cohort of the Entrepreneurship Hub and Seed Financing Facility.
Their incubation starts in June just as that of the first cohort wraps up.
Tumahole Lechesa, the director of Khaya Holdings and Snake Nation, said he was impressed by the ideas and businesses that were pitched.
Generally, the creative industry in Lesotho is a challenge because it’s not well-defined. But there is potential. The creativity is there,” Lechesa said.
He said the focus, for now, is to “showcase the creative industry and prove to policymakers that it exists, needs to be well defined and should be given focus”.
Afri-Expo’s Victor Mashape said the pitching session revealed that “there is lots of talent that needs to be nurtured”.
“They need the right skills to be the next big businesses in Lesotho,” Mashape said.
“They have to be trained on the market, costing, line layout, industrial engineering, quality control and general financial management. They need exposure at all. They need the mass market to survive.”
He said the potential of the textile industry can only be realised with the right skills, support and operating environment.
Mamashiya Ntsepeng Tsita-Tikiso, the manager of the Entrepreneurship Hub and Seed Financing Facility, said the quality of the pitches had significantly improved in this round.
“That is largely due to the information sessions conducted before the sessions. The entrepreneurs fully understood what was expected and were therefore better prepared in terms of presentations as well as handling questions from the panels,” Tsita-Tikiso said.
“The adjudication is at a very high level. Because of the induction that the ESOs went through, their questions to the entrepreneurs are inclined towards potential of enterprise to grow and be sustainable.”
Tsita-Tikiso said the pitching session would be followed by a thorough due diligence that will involve physical checks of business premises as well as verification of credentials.
“Now the ESOs have to go beyond the candidates’ claims and prove that they are who they say they are. It’s a critical stage before the final selection. The incubation is expected to start in June.”
Tsita-Tikiso also revealed that the first cohort whose incubation is wrapping up is getting ready for a demo day where they will showcase their products.
“They are also getting ready to go out into the market to look for investors that will help them scale up their business.”
Khoboso Matsoakeletse, 44, who itched her business to Khaya and Snake Nation, said she is grateful for an opportunity to talk about her business.
Bozo Design Studio, her company, makes clothes and fashion accessories.
“I am confident that I have told my story well. This is my chance to get the support I need to grow Bozo Design Studio,” she said after the pitch.
The US$52.5 million CAFI project is funded by the World Bank and the Lesotho government.
The project is founded on three mutually reinforcing pillars: Enhancing Financial Inclusion and Resilience of MSMEs, Scaling Support for Entrepreneurship and MSMEs, and Project Management Support.
