Empowering

Entr

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Botswana

ANNUAL REPORT | 2015-16

ContentsGlossary of Terms 2

Financial Highlights 3

Corporate Profile 4

Board of Directors 6

Executive Management 10

Branch/ Incubator Managers 14

Chairman’s Statement 16

Chief Executive Officer’s Statement 20

Corporate Governance Statement 24

Promotion of Citizen 26Entrepreneurship

Diversification of the Economy 28

Development of a Competitive 30SMME Community

Business Incubation Programme 32

2015 SMME Pitso 34

Enhancing Service Delivery 36

Human Resources 38

Corporate Social Investment 40(CSI) Initiatives

Financial Statements 42

LEA Client Testimonials 73

A little spark is all it takes to start a fire.

At the Local Enterprise Authority (LEA), we exist to

breathe life into your business idea so that you can

realize your dream.

THINGS WITH LEA

1

Glossary of Terms

BAC Botswana Accountancy College

BCP BusinessContinuityPlan

BDS Business Development Service

BEMA BotswanaExportersandManufacturersAssociation

BITC Botswana Investment and Trade Centre

BMC Botswana Meat Commission

BOBS Botswana Bureau of Standards

BOPEU BotswanaPublicEmployeesUnion

BPC BotswanaPowerCorporation

BTC BoardTenderCommittee

BTO BotswanaTourismOrganisation

BURS BotswanaUnifiedRevenueService

BQA BotswanaQualificationsAuthority

CA CompetitionAuthority

CEDA CitizenEntrepreneurialDevelopmentAgency

CEO ChiefExecutiveOfficer

CETP CommonEffluentTreatmentPlant

CIPA CompaniesandIntellectualPropertyAuthority

COSO CommitteeofSponsoringOrganizationsof

theTreadwayCommission

CSI Corporate Social Investment

CSR CorporateSocialResponsibility

DEA DepartmentofEnvironmentalAffairs

DNIP DepartmentofNationalInternshipProgramme

EAW EntrepreneurshipAwarenessWorkshop

EDD EconomicDiversificationDrive

EDT EntrepreneurshipDevelopmentTraining

EIA Environmental Impact Assessment

ERM Enterprise-wideRiskManagement

FAC FinanceandAuditCommittee

FIBI FrancistownIndustrialBusinessIncubator

HRC HumanResourceCommittee

HR HumanResources

IP IntellectualProperty

ISO InternationalOrganizationforStandardization

LEA LocalEnterpriseAuthority

ME Micro Enterprise

MOA Ministry of Agriculture

MOU MemorandumofUnderstanding

MITI Ministry of Investment Trade and Industry

MYSC MinistryofYouthSportandCulture

PEEPA PublicEnterprisesEvaluation&PrivatisationAgency

PPADB PublicProcurement&AssestDisposalBoard

QMS Quality Management System

SAITEX SouthernAfricanInternationalTradeExhibition

SBA Small Business Act

SHE Safety,HealthandEnvironment

SME Small and Medium Enterprises

SMME Small, Medium and Micro Enterprise

SPEDU Selibe-PhikweEconomicDiversificationUnit

SPV SpecialPurposeVehicle

TAC TechnicalAdvisoryCommittee

Definition of terms Business incubation-Aprogrammedesignedtosupportthesuccessfuldevelopmentofstart-upenterprisesofferinginfrastructureandotherservicesinacontrolledenvironment.

Pre Start-up Business-Abusinessideathathasnotyetbeenimplemented.

Start-up Business-Abusinessthathasbeeninoperationforlessthantwelvemonths.

Existing Business -Abusinessthathasbeeninoperationformorethantwelvemonths.

Monitoring-Anundertakingthatiscarriedoutfollowingexecutionofagapclosingintervention,toexamineifthegaphasbeenadequatelyclosedandensurethatthesolutionislong-lasting.

Mentoring-Mentoringisasystematicprocessofusinganexperiencedbusinesspersontohandholdandprovideguidancetohelplessexperiencedbusinessownerstoachievetheirgoals.

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Entrepreneurship Awareness Workshop Participants

2013-14 2014-15 2015-16

26058

24426

25189

Customer Satisfaction Index

2013-14

Target

2015-16

Achieved

87

8082

80

Number of entreprenuers trained and mentored

2014-15 2015-16

15962657

Performance Highlights

2015 -16

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Empowering Entrepreneurs

Building Botswana

LEA Corporate Profile

The Local Enterprise Authority (LEA) was established by the Small Business Act of 2004, Chapter 43:10 of the Laws of Botswana to carry out on behalf of the Government of Botswana, and more specifically the Ministry of Investment, Trade and Industry (MITI), the mandate of entrepreneurship and enterprise development in Botswana.

Our Mandate:In accordancewith the Small Business Act,the Authority’s mandate is to promoteentrepreneurship and SMME developmentthrough:• Providingbusinessdevelopment

servicesinteraliathrough;screening,businessplanfacilitation,training,monitoringandmentoring;

• IdentifyingbusinessopportunitiesforexistingandfutureSMMEs;

• Promotingdomesticandinternationallinkages,especiallybetweenSMMEsandgovernment,largebusinessentitiesandotherSMMEs;

• Facilitatingchangesinregulations,qualitymanagementsystemsandstandards, infrastructure and access to finance;

• Facilitatingtechnologyadoptionanddiffusion;

• PromotinggeneralentrepreneurshipandSMMEawareness.

TheAuthority’skeydeliverablesinsummaryareasfollows;• Promotionofcitizenentrepreneurship;

• Furtherdiversificationoftheeconomy;

• Promotionofexports;

• DevelopmentofacompetitiveSMMEcommunity;

• Creationofsustainableemploymentopportunities;

• Promotionofthedevelopmentofverticalintegrationandthehorizontallinkages;betweenSMMEsandprimaryindustries in agriculture, services, manufacturingandtourism;

• Improvedefficiencyinthedeliveryofservicestobusiness;

• Promotionofbusinesslinkagesbetweensmallandlargeenterprises.

The Authority prides itself on having anextensive country-wide footprint of 13 branches. Through the tutelage of the ISO9001 Quality Management System Standard, the highly specialized quality of service isstandardized inall thebranchesandclientsarethereforeguaranteedaqualityserviceintheentireLEAbranchnetwork,regardlessofthelocation.

The thirteen branches are in Francistown,Gaborone,Ghanzi,Kanye,Kasane,Masunga,Maun, Mochudi, Molepolole, Ramotswa,Selibe-Phikwe, Serowe and Tsabong. Inaddition to the branches, there are fourBusiness Incubators whose objective is toprovide business space, shared facilitiesand impact driven interventions gearedat attaining accelerated growth of theenterprisesincubated.

TheLEAIncubatorsare;• Francistown Industrial Business

Incubator• GaboroneLeatherIndustriesIncubator• GlenValleyHorticultureIncubator• PilaneMulti-purposeBusinessIncubator

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Our Vision

To be the centre of excellence for entrepreneurship and sustainable SMME development in Botswana

Our Mission

To promote and facilitate entrepreneurship and SMME development through targeted interventions in pursuit of economic diversification.

Our Value Proposition

“Empowering the

entrepreneur to start and

grow their business.”

We are passionate, eager to learn, persistent and determined to achieve personal goals so that the entire team achieves its desired results.

Through our internal teamwork and effective partnership with stakeholders, our efforts are synergized resulting in the success of our clientele.

We are inspired and self-led, motivated, innovative and accountable to achieve maximum potential in a favorable work environment.

We are courteous, polite, and approachable. We execute all our transactions with clients and other stakeholders with integrity.

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Empowering Entrepreneurs

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LEA Board of Directors

With impeccable combined industry experience, the Board is well positioned to take LEA to the next level of transformation, efficiency and growth.

Mr Batlhatswi Tsayang | Board Chairman

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A Mrs Masego Marobela

B Mr Oabile Regoeng

C Mrs Patience Motswagole

D Mr Thatayaone Molefhi

E Mrs Bilkiss Moorad

F Mr Rockie Mmutle

G Ms Nelly Wamasego Senegelo

H Dr Haniso Motlhabane

I Mrs Mama M. Maite

A

D

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Empowering Entrepreneurs

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LEA Board of Directors Resumes

MR BATLHATSWI TSAYANG

Mr Batlhatswi Shongwe Tsayangis Board Chairman of the LocalEnterprise Authority and hassat on the LEA Board since2011.MrTsayang’scareerspansover thirty years working innumerous organizations. He iscurrently the Director of Prop5 Botswana (Pty) Ltd, a HumanResources Consultancy firm. MrTsayang’sexperiencerangesfrombeing the Fleet Manager at theCentral Transport organization,Director at the Department ofNational Transportation and Communications, Assistant General Manager of Botswana Railways, Human ResourcesManager of Air Botswana and Director at Jacques MalanConsultants & ActuariesBotswana. He is well groundedin areas of Human Resourcem a n a ge m e nt , co r p o rate governance, general Industrial Re lat ions med iat ion andcounseling, finance matters aswell as general administrationandprotocol.

Mr Tsayang has sat in variousboards which include BotswanaMedical Aid Society (BOMAid),Botswana Housing Corporation(BHC), Labour Advisory Boardand has also served as BoardSecretary at Botswana Railways.He holds a Master’s Degree inPublic Administration from theUniversityofBotswanaandisanaccredited RICS (Royal InstituteofCharteredSurveyors)Mediator

MRS MASeGO MAROBeLA

Mrs Masego Marobela, who isthe Managing Director of theBotswana Bureau of Standards (BOBS) has a Master’s Degreein Business Administration anda Master of Science (AnalyticalChemistry). She previouslyworked at the then Ministryof Commerce and Industry under the Botswana – GermanyTechnical Cooperation Projectto establish the NationalQuality Assurance System, theDepartments of Water Affairsand Geological Surveys. She hascontributed to the success ofthe SADC Technical Barriers toTrade structures’ strategies, andserved as Chairperson of bothMeasurement Traceability andAccreditation structures. Sherepresents Botswana on theInternational Organization forStandardization Council and isa member of the University ofBotswanaCouncil.

MR OABILe ReGOeNG

Mr Oabile Regoeng has astuteknowledge as a Public RelationsE xe c u t i ve a n d B u s i n e s s D e ve l o p m e nt S p e c i a l i s t , who has a reputable recordof successfu l ly del iver ing strategies that have seenbusiness development initiativespenetrate the market segmentthrough successful ProjectManagement.MrRegoengholdsa Master’s Degree in BusinessAdministration- Finance. He haspreviouslyworkedattheNationalDevelopment Bank (NDB)andCitizenEntrepreneurshipDevelopment Agency (CEDA).

He has since joined the privatesector as a property developer.HecurrentlyservesastheBoardChairperson of Kweneng DistrictVentures(Pty)Ltd,aninvestmentarmofKwenengDistrictCouncil.

DR HANISO MOTLHABANe

Dr.HanisoMotlhabanehasaPhD in Policy Process withspec ia l i za t ion in Po l i c yImplementation. He hasexperience in the EducationSector in particular theAgr icul ture, Sc ience and Technologyspheres.Hehasheldcritical roles in various researchinstitutions as a member ofthe task forces and steeringcommittees therein. He iscurrently with the BotswanaInternational University ofScience and Technology (BIUST).DrMotlhabanepreviouslyservedasaBoardMemberoftheForumonSustainableAgriculture.

MRS BILKISS MOORAD

Mrs Bilkiss Moorad is anaccomplished senior executivewho rose through the ranks ofthe corporate world for over25 years, of which 16 has beenin the insurance and bankingsector. She is a CharteredAccountant and fellow memberof ACCA (FCCA). Mrs Mooradis highly skilled in businessdevelopment and relationshipmanagement. She is also knownforhereffectiveleadershipskills,strategic thinking and innovativeideas. Mrs Moorad started twolife insurance companies; ABSA

Life Botswana and Liberty Life.She has alsoworked at BarclaysBankofBotswana,BotswanaLifeInsurance and Zurich Insurance.She is currently the ChiefExecutiveOfficeratBotswanaLifeInsuranceLimited.

MR THATAYAONe MOLeFHI

Mr Thatayaone Molefhi bringswithhimawealthofexperienceand understanding of various industries from both public andprivate sector. He holds BEngin Metallurgy, MSc in Advanced Manufacturing Systems from Brunel University in the UnitedKingdom, Professional Diplomain Purchasing and Supply(CIPS), Project ManagementProfessional (PMI), CertifiedStrategy Practitioner (Palladium)and a Certified Contract andC o m m e rc i a l M a n a ge m e nt Professional (IACCM). He is theChairman of PMI Botswana,Botswana Chapter FormationS te e r i n g C o m m i tte e a n d Executive Committee Memberof Southern District FarmersAssociation.MrMolefhiworksforDebswanaastheGroupBusinessDevelopmentManager.

MS NeLLY WAMASeGO SeNeGeLO

MsNellyWamasego Senegelo iscurrently theDeputyPermanentSecretary responsible forIndustry, in the Ministry ofInvestment, Trade and Industry.She has a Master of SocialScience Degree in Development F inance (Un ive rs i t y o fBirmingham,UK),andBADegreein Economics and Statistics(University of Botswana). Ms

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Senegelo previously workedin the Ministry of Finance andDevelopment Planning as anEconomist, Finance Administrator and Deputy Secretary for budget administration andhas considerable experiencei n budge t p repa ra t i o n ,analysis, debt managementand monitoring. She was theGovernment’s correspondent totheInternationalMonetaryFundon issues of Government Finance Statistics.

She facilitated the developmentof the Policy Guidelines forFinancial Support to Non-Governmental Organizations.WhilstattheMinistryofFinanceand Development Planning, sheserved as a Board Member ofthe Botswana Public OfficersMedical Aid Scheme (BPOMAS).SheiscurrentlyaBoardmemberof Competition Commission andBotswanaInnovationHub.

MRS PATIeNCe MOTSWAGOLe

Mrs. Patience Motswagole isa Senior Attorney who holds aBachelor of Laws (LLB) degreeand a Management Development Programme. She is a Bankingand Commercial lawyer with 15years’workexperience,about10years’experienceinthefinancialservice industry and corporate sector. She has experience incommercial law, corporate finance, corporate governance,regulatoryissuesandcompliance.Furthermore, she has extensiveleadership experience havingheaded legal departmentsat Citizen EntrepreneurialDevelopment Agency (CEDA),

Barclays Bank of BotswanaLimited, First National Bank ofBotswana Limited and BancABC Botswana. Mrs MotswagolecurrentlysitsontheBoardofthePublicEnterprisesEvaluationandPrivatizationAgency(PEEPA).Shehas also servedon theBoardoftheNationalEnvironmentalFund(NEF) and as a trustee on theBoard of the FNB Staff PensionFund.

MR ROCKIe MMUTLe

Mr Rockie Mmutle has aMaster’s Degree in BusinessAdministration and Bachelorof Commerce (Management).MrMmutle hasworked for G4SBotswana Limited and Medical Rescue Botswana Limited. HewasaBoardMemberofBankofBotswana. He is knowledgeableinStrategyDevelopmentandhasvast experience in the businesssector.HeiscurrentlywithKansai

PLASCONBotswana(Pty)Ltd.

MRS MAMA M. MAITe

Mrs Mama M. Maite possessesanMBA,MscinHumanResourceManagement, a Post GraduateDiploma in Human ResourcesStudies as well as a Bachelorof Commerce (BCom), and hasover 17 years’ experience inHuman Resource management.Throughout her professionalcareer she has developed andimplemented Strategic people agenda aligned to overall business priorities. Mrs Maiteis currently with StandardChartered Bank of Botswana asthe Head of Business HR, RetailClients, Group Technology andOperations. Mrs Maite hasworkedfortheBotswanaBureauof Standards (BOBS), BotswanaTra in ing Author i ty (BOTA) ,BotswanaAgriculturalMarketingBoard (BAMB) and Directorateof Public Service Management(DPSM).

Board and Committee Membership

Board Member Board TAC FAC BTC HRC

MrBatlhatswiTsayang(Board Chairman) •

MrsBilkissMoorad • • •

MrRockieMmutle • • •

MrOabileRegoeng • • •

MrsMasegoMarobela • • •

MrThatayaoneMolefhi • • •

DrHanisoMotlhabane • • •

MrsMamaM.Maite • • •

MsNellyWamasegoSenegelo • • •

MsPatienceMotswagole • • •

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Empowering Entrepreneurs

Building Botswana

Executive Management

A Dr Tebogo T. K. Matome Chief Executive Officer

B Mr Cosmas Moapare Deputy CEO -Support Services

C Mrs Masego Gwaila-Madanika Deputy CEO -Client Services

D Mrs Joy Norman Board Secretary & Legal Services Manager

E Mr Moshe C. Z. Libengo Director, Corporate Services

The LEA Executive Management Team endeavours to develop and implement home grown strategies that are aligned to the vision of the organisation.

A D

B

E

C

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F Mr Kabelo Nkwane Director, National Branch

Network

G Mrs Boikhutso Kgomanyane Director, Corporate & Stakeholder Communications

H Mr Lesitamang Paya Director, Innovation & Sector Support

I Mrs Ontlametse Sebonego Director, Risk & Internal Audit

J Mr Gordon Mbongwe Strategy Manager

K Mr Ephraim Kentse Director, Information Technology

L Mr Lisenda Lisenda Director, Corporate Planning

M Mr Donald Fologang Director, Capacity Development

N Mr Gaboipeelwe Motlhabane Quality Management Representative

O Ms Bitsang Kgosi Director, Human Resources

P Ms Dynah Solani Director, Research & Development

J L

N

AF H

K

O P

G I

M

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Empowering Entrepreneurs

Building Botswana

Executive Management

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Branch and Incubator Managers

G Ms Martha Keikanetswe Branch Manager (Ghanzi)

H Mr Kagiso Habangana Branch Manager (Selibe-Phikwe)

A Mr Obakeng Segwagwe Senior Manager (South)

B Mrs Kgomotso Masunga Branch Manager (Serowe)

C Ms Anastacia Mamelodi Branch Manager (Mochudi)

D Mr Lesedi Ngakane Branch Manager (Molepolole)

E Mrs Dulu Moaisi Branch Manager (Ramotswa)

F Mr Kago Ntebela Branch Manager (Kanye)

The LEA Branch and Incubator Managers are well equipped and positioned to navigate the business environment and bring to fruition our clients’ business ideas.

E

A

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C

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I Mr Oreneile Padipadi Senior Manager (North)

J Mrs Gertrude Molefi Branch Manager (Gaborone)

K Mr Agripah Hengari Branch Manager (Maun)

L Ms Mmoloki Kesalopa Branch Manager (Francistown)

M Ms Segakolodi Ntebele

Branch Manager (Masunga)

N Mrs Shatho Orapeleng Branch Manager (Tsabong)

O Mr Jimmy Lennwe Branch Manager (Kasane)

P Mr Isaac Bok Incubator Manager - Glen Valley

Horticulture Incubator

Q Mr Mothusi Kelebogile Incubator Manager - Pilane

Multi-purpose Incubator

R Mr Oratile Koloka Incubator Manager - Gaborone

Leather Industries Incubator

S Mrs Lovvy Otimile Incubator Manager - Francistown

Industrial Business Incubator (A)

LI

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Building Botswana

Chairman’s Statement

85%Organisational Performance for the 2015/16 financial year, 10% above the target of 75%.

3LEA clients successfully graduated

H I G H L I G H T S

“Our greatest achievement is when our clients no longer require our services as they have learnt to be competitive and sustainable, existing without us”.

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As the global economy continues to tank and become more unfavourable to commodity based economies like ours, it is our earnest and sincere belief that this presents a great opportunity for LEA to unlock the great entrepreneurial potential of the citizenry of this country. The road we travel is bumpy and perfidious, and littered with a number of devastating failures and disappointment; it is however a road we need to travel if we are to change the fortune and trajectory of the country’s economic development.

The organisational performance for the2015/16 financial year currently stands at85% against a target of 75%. Even thoughwe have been able to exceed our settarget, theperformance resultsdonot fullyreflect progress towards attainment of theobjectivesorprovisionsoftheSmallBusinessAct (2003). Since 2009 the organisationhas been faced with a serious reduction inthe financial resources available to achieveour mandate. Be that as it may, we havecontinued to mitigate against the reducingfinancialresourcesbyexecutingourplannedinitiatives and projects as best we could.We have had to relook our service deliverymodel and make changes to ensure that

we prioritise those areas where we havethe greatest control and ability to make adifference in our clientele. I should hastento indicate that we struggledwith some ofthe lagging indicators such as investmentvalue, sustainable jobs createdandcreatingnew Small and Medium Enterprises. Thelow investment value is explained by thestringent/onerousrequirementsoffinancialinstitutions, especially the restrictive highsecurityrequirements.

On behalf of the Board of Directors of the Local Enterprise Authority, I am pleased

to present the LEA Annual Report for the financial year 2015 - 2016. This report gives a brief synopsis of the operations, achievements, challenges and milestones of LEA in pursuit of the organization’s mandate. The Annual Report highlights the performance of the organization for the financial year under review.

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Empowering Entrepreneurs

Building Botswana

The 2015-16 financial year representsone of the proudest achievements ofLEA as we have been able to successfullygraduate three (3) clients, namely DestinyCar Rentals in Francistown, SephimonHoldings T/A Isabel Guest Suites & Toursand Lifestyle Architects both from Palapye.To fully appreciate the significance of thisgraduation,oneneedstounderstandthatallthese enterprises, were created, grew andbecame competitive and sustainable underLEA. Their graduation affirms that the LEAend-to-endprocessiseffective.Ithasalwaysbeen our understanding that our greatestachievement is when our clients no longerrequire our services as they have learnt tobe competitive and sustainable and existwithoutus.As aBoard, this fills ourheartswith pride as it indicates that indeed theorganisationcontinuestomakeadifferenceinpeoples’life.

TheNDP11isaboutmovingBotswanafromaresourcesbasedeconomytoanefficiencyled and export led trajectory. This presentsan opportunity for our entrepreneurs and SMMEs to play a critical role in growingand diversifying the Botswana economythrough creativity and innovation. SMMEsare faced with a new Botswana, wheregovernment can no longer lead throughgovernment spending, and are requiredto seize the moment and create businessopportunitiesforthegrowthofthecountryand employment creation. LEA through itsvarious programmes and projects such asIncubatorsandLeatherParkwillcontinuetoensure that entrepreneurs and SMMEs aregiventheopportunitytostartandgrowtheirbusinesses.

Government through the Ministry ofInvestment Trade and Industry continuesto work hard on improving the manner inwhichweconductbusiness, andourglobalcompetitivenessranking.Wehastentooncemorepointoutthatthisistheroleofeverystakeholder.

Chairman’s Statement [continued]

While maintaining the noble mandateof LEA, a rationalization of the mandatesof government entities charged withentrepreneurship development will betterchannelthecurrently limitedresourcesandachieveefficiencygains.Theduplicityofthemandates of government entities such as;Gender affairs Department, Agri-BusinessPromotion, Youth Development Fund, andPovertyEradicationandCoordinationUnitisaself-defeatingratherthananeffectivewayofachievingentrepreneurshipdevelopmentinBotswana.

LEA will however continue to seek morecollaboration with other parastatals orGovernment entities who are providingsimilar service. LEA will also revise therelevant statutes governing the Authorityto allow the Authority to increase costrecovery initiatives and revenue generatingavenues, including theprudentexploitationof itsdiversepropertiesandassetsthattheorganisationowns.

We are proud to have made progress in the implementation of our two strategic projects, being the Kutla Incubator (formerly the Rapid Incubation Project) and the Leather Industry Park.

ThroughtheKutlaIncubator,LEAisplanningtostartprovidingpracticaltrainingontheproductionofvariouscommoditiesusinglowtechproductiontechniquesandprocessesatthestartof2017.Whereaswewouldhavelikedtohavestartedearlier,theprocessofprocuringmachineryandsecuringoperationalfinanceshasdelayedus,resultinginmovingtheimplementationtoearly2017.

LEA through its various programmes and projects such as Incubators and Leather Park will continue to ensure that entrepreneurs and SMMEs are given the opportunity to start and grow their businesses.

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Ontheotherhand,whiletherehasnotbeenany construction related ground breaking,the 2015/16 financial year had four criticalmilestoneslinedupfortheLeatherIndustryPark, namely: the Environmental ImpactAssessment (EIA) Study; establishment ofthe Special Purpose Vehicle (SPV) (whichis a company that is going to own, build,operate and maintain all the componentsof the Leather Industry Park); engagementof a Technical Advisor (responsible for theprovision of the technical expertise in alltechnologies that are recommended at thepark) and, the engagement of the ProjectManager (who will develop a detailedproject report covering architectural, civil,mechanical and electrical drawings for theentire components of the park). These areall critical stages which will ensure boththe smooth implementation as well as theeventualsuccessoftheproject.

WearehappytosaytheEIAstudyisongoing,theappointmentofthetransactionaladviserwas successfully completed, the next stageis thecreationoftheSPVandappointmentof the technical advisor and the ProjectManager.

I wish to conclude by expressing sinceregratitude, on behalf of the LEA Board,Management and staff, to our parentMinistry of Investment Trade and Industry, represented by the Minister and thePermanent Secretary for their unwaveringsupport to LEA. It is through their supportthat LEA stands a much better chanceto develop enterprises and general entrepreneurshipinBotswana.Itwouldbeamiss not to appreciate the support givenby our various stakeholders who continueto partner with us in our drive to nurtureentrepreneurship and sustainable SMMEdevelopmentinthecountry.Iwishtodirectspecialgratitudetotheveryentitiesthataretheprimarybasisforourexistence,beingtheSMMEcommunity.

Batlhatswi S. Tsayang Chairman of the Board

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2 657entrepreneurs were trained, mentored and coached against a target of 2114

25 189participants were trained against a target of 24 000

H I G H L I G H T S

Chief Executive Officer’s Statement

Our strategy is aimed at further accelerating business start-ups and growth within the SMME sector of Botswana.

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We are proud to have played a part incontributing to the economic growth ofBotswana and assisting in our country’sdiversification efforts through the creationandgrowthofSMMEsinthelastnineyears.Weconsiderourroleinthesedevelopmentalefforts as one of empowering Batswanato play amore active role in the growth oftheir economy. At the heart of our effortsis to ensure thatmore Batswana, start andgrow viable, sustainable and competitivebusinesses.

Despite great developmental strides of thelast 50 years, there is general consensusthatthenext50yearswillrequireadifferentapproachandadevelopmentmodelcentred

onourabilitytoexploitourcountry’shumancapital and talents. This is informed by theeconomic forecast, where the economicperformanceofdiamonds,whichhavebeenthemainstayoftheeconomy,ispredictedtobeonadeclineduetoproductionandmarketfactors.Thecurrentsituationhasbeenmadedire by the fact that our efforts to diversifytheeconomyhavenotresultedinanoptimaloutcome.Thecountryhasexperiencedgoodeconomic growth that has not translatedintoeconomicdevelopmentformuchofthecitizenry, hence the high inequality amongthe population as evidenced by a high GiniCoefficient Index and high unemploymentamongtheyouth.

If we are to transit to an efficiency-basedeconomy,asperouraspirationespoused inthedraftNDP11,andachieveoureconomicdevelopmentgoals, there isaneed thatwefocusoureffortsonaddressingthechallengesthatdirectlyandindirectlyaffectproductivityand competitiveness; and LEA is continuallystriving to address these challenges. OurSMME Sector Developmentmodel is basedon a simple three pronged approach, andis anchoredon theprinciplesof continuousimprovement. The three spheres are likea three legged pot, which require equalattentionifwearetocreateviable,sustainableandcompetitiveSMMEsthatbringapositiveimpact to the economy. Over the years,

It is my pleasure to present to you yet another report marking a completion of an

important milestone. We are elated that this coincides with a generally positive

national mood as we celebrate our golden jubilee of independence. These 50 years

of independence, have seen huge political, social and economic strides which have

earned the country accolades across the world.

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Chief Executive Officer’s Statement [continued]

our strategy has endeavoured to pay closeattentiontothesethreeareasoffacilitatingcreation of “empowered and competententrepreneurs”; “conducive entrepreneurialmilieu”, and “high quality capacity buildinginterventions andprogrammes”. Like inourpreviousprogress reports, this yearwewillcontinue to update our stakeholders onour achievements, challenges and areas ofimprovementontheseareas.

Central to an entrepreneurial venture, is the entrepreneur; being someone whoorganizes and manages the enterprise, bytaking initiative and assuming all the risksthat comewith the business. LEA exists topromote and facilitate an entrepreneurshipculture through facilitation of enterprisestart-ups, and the growth of alreadyexisting enterprises in the SMME sector.Thisisachievedthroughnumerouscapacitydevelopmentinterventionsrangingfromthebasic to more advanced business advisoryinterventions. During the 2015-16 financialyear, 113 Small and Medium Enterprises (SMEs) were registered against a targetof 127. In addition, a total of 4460 MicroEnterprises (MEs)were registeredagainstatargetof1800.TheseSMEsandMEscometo LEA requesting a whole host of variousinterventions.Alsoduringthisfinancialyear,we trained, mentored and coached 2657entrepreneurs against a target of 2114.Furthermore,outofthisfigureof2657,theyouth accounted for 2033 (994 males and1039females).Theseprogrammesaddvaluetobusinessesandentrepreneursastheyleadtoskillsdevelopment,businessefficiency,andcost savings, allwhichplay an instrumentalrole in enterprise competitiveness, growthandexpansion.

These capacity development interventionsarenotanendinthemselves,theyareaimedat addressing the specificgaps identified inour entrepreneurs to assist them in theirefforttostartandgrowtheirbusinessesintointernationally competitive and sustainableenterprises, and thereby contributingimmensely towardsourgovernment’sgoalsof inclusive growth, employment creationand poverty eradication. As regards jobs,a total of 636 jobs were created against atargetof700,anda total InvestmentValue

of P94.5m was registered against a targetofP203m.ItisimportanttonotethatthesejobswererealisedasaresultofLEA’sdirectinterventions. There were numerous otherjobswhichweresustainedasaresultoftheinterventionsthatweprovidetoclientsinourdatabase.Also,attheendof2015-16,three(3)clientsgraduatedfromtheLEAportfolioas planned. These clientswere Destiny CarRentals in Francistown, Sephimon HoldingsT/AIsabelGuestSuites&ToursandLifestyleArchitectsbothbasedinPalapye.

The entrepreneurs and enterprises existwithin a context, which can either impedeor boost business growth. While a goodbusiness environment does not necessarilyguarantee business growth, an unattractivebusiness environment does stifle businessgrowth. It is for these reasons that LEAcontinues to prioritise the development ofa conducive environment for entrepreneurs and SMMEs. At the centre of ourinterventions inthissphere isthenurturingof an entrepreneurship culture, provisionof productive infrastructure, facilitationof access to finance and developmentof a comprehensive policy frameworkto guide and direct Botswana’s nationalentrepreneurship promotion and SMMEdevelopmentefforts.

As a way of inculcating an entrepreneurialculture within Batswana, LEA continues toembark on Entrepreneurship AwarenessWorkshops (EAW). This programme seeksto promote general entrepreneurship andSMMEawarenessinaccordancewithSection4 of the Small Business Act (SBA). Theprogrammetargetssecondaryschoolleavers(Form5’s),vocationaleducationtrainees,aswellas,prison inmates leftwithatmostsixmonthstocompletetheirsentences.DuringtheyearuptoMarch2016,atotalof25189participants were trained against a targetof24000.TheEAWisoneofLEA’sflagshipprogrammesthatareatthecoreofnurturingacultureofentrepreneurshipinourcountry.InparticularthedraftNDP11,hasidentifiedageing infrastructure and lack of resourcestogether with inadequate productiveinfrastructureamonganumberofchallengesto be addressed in the next plan. This

supports our current efforts of facilitatingproductive infrastructure in the leatherandmanufacturing sectors. Our interventionin these sectors is represented by our twostrategic projects, namely the LeatherPark Project and the Kutla Incubator. TheLeather Park Project is aimed at spurringthe sustainable development and growthofBotswana’s leather industrybyunlockingthevalueandactivitiesinboththeupstreamanddownstreamoftheleathervaluechain.TheLeatherIndustryParkprojectisbackoncourseasthefollowingimportantmilestonesare ongoing; Environmental ImpactAssessment (EIA) Study; establishment ofa Special Purpose Vehicle (SPV) that willown and operate the Park; engagementof a Technical Advisor responsible for theprovision of technical advice as it relatesspecificallytoleatherbeneficiation;andtheengagementofaProjectManagerwhowilldevelop a detailed project report coveringarchitectural,civil,mechanicalandelectricaldrawings for the entire components of thepark.

The Kutla Incubator on the other hand isgearedtowardstheprovisionofspecificandpractical production skills on 12 differentmanufacturing projects targeting the YouthDevelopmentFundandpovertyeradicationprogrammesbeneficiaries.Aspermyreportlast year, the Kutla Project should have itsfirstintakeinJanuary2017.

Overthelastfewyearswehavecontinuedtoflagthefactthatobtainingmediumtolong-term financing from financial institutions,especially commercial banks, remains themajor obstacle for SMMEs in Botswana,particularly for new start-up enterprises.Without timely and adequate finance,SMMEs cannot start, acquire or absorbnew technologies, nor can they expandto serve global markets or even establishbusiness linkages with larger firms in thelocal and international liberalizedeconomicenvironment.TherecentstudyontheMicroFinance framework has established thatabout 75% of our entrepreneurs/SMMEsrelyoninformalsourcesoffunding,suchasfamily,toestablishtheirbusinesses.Withoutadequatesourcesoffinancingbeingavailable

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toSMMEs, suchwill continueto inhibit theabilityofLEAtofacilitatetheestablishmentof new start-ups and also grow existingbusinesses.Wearehopefulthattheapprovaland the implementation of the NationalEntrepreneurshipPolicy,whichhasidentified“access to start-up financing and seedcapital”asaseriouschallenge,willassist inensuring availability and easy accessibilityof finance and seed capital for new pre-start-ups, growth-oriented enterprises, andhigh-tech enterprises that are fundamentalfor entrepreneurship development. TheNational Entrepreneurship Policy is to bepresentedtoCabinetandParliamentduringthenextfinancialyear.

Onthebackdropoftheforegoingtheoverallorganizational performance for the 2015-16 financial year stood at 85% against atarget of 75%. The above achievementsare remarkable as they occur in the faceof constricted budgetary resources, andunattractive staff remuneration packageswhichhaveresultedintalentdrain.Thedawnof the global economic recession coincidedwith LEA at its infancy of operation,wheretheextentofouroperationalbudgetwasnotfullyestablishedaswewerejustbeginningtorolloutour interventions.Asa result, since2010 the organisation has operated undera severely constricted budget, thus havingto curtail and cutbackon someof its coreactivities. These include having to reduce

the number of training and mentoringinterventions, togetherwiththemonitoringvisitstoourclients.

The effect of the budgetary constraints ismainlyfeltonourHumanResources.Wearenot able to offer competitive remunerationpackages, resulting in us losing talent andour inability to replace this talent. Onceemployees have gained the necessaryexpertiseandexperience,theyareattractedby other better paying institutions. Be thatas it may, LEA remains committed to highservice standards, excellence and most importantly the principles of continuousimprovement. It is for these reasons thatthe organisation continues to maintain theQualityManagementSystemISO9001:2008certification.

Wearehoweverhopeful forbetter fundinggoing forward in lightof the fact that LEA’smandate as a capacity development entityfortheSMMEsisattheheartofgovernmentefforts of inclusive economic growth, jobcreationandpovertyeradication.

Despitetheachievementofthetargetsthatwe had set ourselves, it should be notedthat LEA could have achieved much more,andwould have rolled out its services to awider populace had it not been operatingunder severe financial constraints duringthe 2015/16 Financial year. The budget

constraintshaveresultedinlimitedprovisionof critical interventions necessary forcreation and sustenance of the jobs forthe SMMEs. LEA needs to be resourcedreasonably in order for it to deliver on itsrole of empowering the SMMEs to be theengines of economic growth and wealthdemocratisationinourcountry.

Let me conclude by extending ourappreciation to the Ministry of InvestmentTrade and Industry for their continuedsupporttowardsLEA.IalsothanktheBoardforthemuchvaluedstrategicguidanceanddirection that they provide. Salutation alsogoestomycolleagues,theLEAmanagementand staff, for their unrelenting hard workand dedication towards this organisation.Equally importantly, I thank our customersand stakeholders; our customers for thetrust they continue to have in the qualityof our interventions, and our stakeholdersfor their support and partnership in theimplementationofourvariousinitiatives.

Tebogo T.K. MatomeChiefExecutiveOfficer’s

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Corporate Governance Statement

In recent years the Government throughthe Public Enterprise Evaluation andPrivatisation Agency (PEEPA) has advocatedfor the adoption of good governance andbest practice. In its efforts to live up to theexpectation of high standards of corporategovernance, the LEA Board developed itsBoardCharter. This charter is an instrumentthatisintendedtoguidetheoperationsandbusiness of the Board by clearly outliningits mandate, composition and authority. InadditiontotheBoardCharter,thefourBoardSub-Committees are also governed by theirrespectiveTermsofReference.

In 2015, the Board also developed andsigned a Shareholder Compact to formaliseits relationship with Government as ashareholder through the Ministry ofInvestment, Trade and Industry. Its purposeis to reflect the expectations of each partyin terms of the outcomes that need to beachieved while strengthening corporategovernance.

Board Committees

TheLEABoardhasacurrentmembershipoften(10),whereinthemembersareexpertsinvariousfields.TheLEABoardhasfour(4)sub-committees that provide strategic guidanceto the organization in compliance with thestatutoryrequirements.

Technical Advisory Committee

The Technical Advisory Committee providesstrategicguidanceonprojectsthatformpartoftheLEAmandate.TheCommitteefurtherdealswithmattersofthefollowingnature:

• Providingbusinessplanning,trainingandadvisoryservices;

• IdentifyingbusinessopportunitiesforexistingandfutureSMMEs;

• Promotingdomesticandinternationallinkages,especiallybetweenSMMEsandgovernment,largebusinessentitiesandotherSMMEs;

• Facilitatingchangesinregulation,qualitymanagement systems and standards, infrastructureandaccesstofinance;

• Facilitatingtechnologyadoptionanddiffusion;

• Promotinggeneralentrepreneurshipawareness;

• Settingandmonitoringofperformancetargetsoftheorganization.

Human Resource Committee

The Human Resource Committee considershuman resource matters of a strategicnaturesuchastheappointmentofexecutivemanagement,andensuringthedevelopment,adoption and implementation of humanresourcepolicies.Additionally,thecommitteedealswithcreatingaconduciveenvironmentfor the attraction and retention of qualityhumanresourcesforLEA.

Finance and Audit Committee

The Finance and Audit Committee advisesthe Board on financial and audit relatedmatters. The Committee ensures thatfinancial resources are aligned with theorganization’s strategic direction, as well aspromoting and ensuring transparency andaccountabilityinallfinancialmatters.Wherenecessary, the Committee has powers toinstitute investigations of a financial and/oradministrativenaturetoprotecttheinterestsoftheAuthority.

BOARD AnD GOvERnAnCE

LEA embraces and subscribes to corporate governance and best practices in business. The Authority adopts and applies where application, the recommendations of the King IV Report. The Small Business Act of 2004 however remains the main overall governing tool that the Authority derives its mandate from.

In an effort to live up to the expectation of high standards of corporate governance, the LEA Board developed its Board Charter.

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Board Tender Committee

TheBoardTenderCommitteeconsidersandmakes decisions on all tenders and tenderrelatedmatters.

Risk Management

The LEA Board recognizes that effectivemanagement of risk is essential to goodcorporategovernance.Inanefforttoensurethattheorganizationispreparedtopromptlyand positively mitigate risks which may beencountered during the course of business,the following mechanisms have beenestablished by the LEA Board through theFinanceandAuditCommittee;

Enterprise-wide Risk Management (ERM) Framework

The organization has implemented an ERMframework from which a comprehensivecorporateriskregister isgenerated.Theriskregister identifies risks which could havea negative impact on the achievement ofcorporateandbusinessobjectives,aswellasidentificationofcontrolmeasuresnecessaryfor mitigating these risks. Regular reviewsareconductedtoassessandupdatetheriskregister.TheBoardhaschargedManagementwiththeresponsibilityofmanagingriskandimplementing mitigation measures withintheorganisation.

Safety, Health and Environment (SHE) Structures

LEAmaintainsSHEstructuresthroughout itsbranchnetwork tocontinuously improveonsafety, health and environmental concernswithintheworkplaceintermsofconductingSHE inspections, appointment and trainingof SHE representatives, first aiders and firemarshals.

Business Continuity Plan (BCP)

The organization implements a BusinessContinuityPlantoensureminimaldisruptiontocriticalbusinessprocessesandoperationsintheeventofadisaster.Duringtheperiodunder review, detailed continuity planswere implemented for the following criticalbusiness processes; Information Technology(IT) services, Human Resources (HR),Finance,SharedServices(Procurement)andCorporateandStakeholderCommunications.Management continuously reviews thecontinuityplansforadequacy,relevanceandcompleteness.

Internal Audit

The Internal Audit department is anindependent assurance provider thatundertakesreviewsgearedtowardsprovidingassurance to the Board, Management andLEAstakeholdersonmattersrelatingto:

• Efficiencyandeffectivenessofriskmanagement,controlandgovernance.

• Reliabilityoffinancialandoperationalreporting.

• Compliancewithpolicies,proceduresandlaws.

• Safeguardingoforganizationalassets.

The Finance and Audit Committee reviewsand approves the Risk Based Internal AuditPlan. Internal Audit reports are submittedto the Finance and Audit Committee on aquarterly basis on the outcomes of reviewsperformed. The Internal Audit functionhas been instrumental in reviewing theorganization’s risk management practicesand strengthening of the overall controlenvironment.

TheCommitteehasconsideredandissatisfiedwith the effectiveness of the Internal Auditfunction.TheBoardcontinuestosupportandplacerelianceontheworkofInternalAudit.

Internal Control

The internal control and risk managementprocesses associated with financial andoperational reporting have been plannedin such a way that they produce sufficientcertainty over the reliability of reporting,and to ensure that the applicable laws andregulations have been complied with. TheLEA Board of Directors has approved thecorporate policies on which the controlenvironmentisbased,aswellasthepoliciesrelating to risk management and corporategovernance. The financial reporting processincorporates internal control principles pursuanttotheCOSOframework(CommitteeofSponsoringOrganizationsoftheTreadwayCommission).

The Code of Conduct approved by LEA’sBoardofDirectorsisbasedonLEAvaluesanddefines theethicalprinciples throughwhichbusinessoperationsareconducted.

Fraud Policy and Whistle-blowing Hotline

In an effort to dissuade unethical businesspractices and promote transparency, theorganizationhasadoptedaFraudPolicyandan independent Whistle-blowing Servicethroughwhichwrongdoingmayanonymouslybereported.Thepolicyalsoprovidesfortheprotection of whistleblowers. General staffmembers are also sensitized on the FraudPolicyandtheWhistle-blowingService.

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Building Botswana

OnesuchistheEntrepreneurshipAwarenessWorkshops (EAW), which inculcates aculture of entrepreneurship amongstBatswanafromanearlyage.Theworkshopsintroduce entrepreneurship and enterprisedevelopment as an alternative to formalemployment. During the 2015-16 financialyear,25189participantsbenefitedfromtheseworkshops,againstatargetof24000.Theseconsisted of final year students at seniorsecondary schools, technical colleges andbrigades.

Entrepreneurshippromotion is alsoattainedthrough participation at various outreachactivitiesthatpresentanopportunityforLEAtomarket themandate and service offeringtothepublicatlarge.Theseplatformsincludemobilestops,roadshows,careerfairs,Kgotlameetings,tradefairsandmarketdaysamongothers.Duringthe2015-16financialyear,LEAattended 566 outreach activities against atargetof338.

In promoting entrepreneurship a n d s u s t a i n a b l e S M M E development in Botswana, LEA implements programmes that up-skill and capacitate entrepreneurs to start and grow their businesses.

Promotion of Citizen Entrepreneurship

Entrepreneurship promotion is also attained through participation at various outreach activities.

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Empowering Entrepreneurs

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Diversification of the economy

Leather Industry Park

TheLEAvaluechainstudiesandotherstudieshaveuncoveredmanyblockagesintheleathervalue chain. The purpose of establishingthe Leather sector park is to unblock thoselimitingfactors inthevaluechainandrevivetheleatherindustryinBotswana.Theleatherindustry has relied on imported finishedleather for many years, hence making itdifficult to quickly develop the sector. Theleatherparkwillcatalyzemanufacturingofallleatherproducts inthecountry.Thisprojectisaimedatprocessingallthehidesandskinsgeneratedlocallyintofinishedleather.

Key Strategic Projects

During the period under review, LEA made strides in

implementing some of the key projects that it has been tasked

by Government to implement. The Leather Industry Park and the

Kutla Incubation Centre are being implemented to address gaps

such as lack of finished leather and lack of entrepreneurial skills

amongst Batswana respectively.

The purpose of establishing the Leather sector park is to unblock those limiting factors in the value chain and revive the leather industry in Botswana.

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The leather industry park with a CommonEffluent Treatment Plant was adopted asa development model to address lack offinished leather for SMMEs and createenabling environment for them to thrive inthissector.

The 2015-16 financial year saw theimplementationoftheprojectmilestoneforthe leather park project. Major activitiescarried out as at 31st March 2016 are thescoping stage for the Environmental ImpactAssessment(EIA)studyandsubmissionofthereport to theDepartment of EnvironmentalAffairs(DEA)forconsideration.Ontheotherhand,theestablishmentofaSpecialPurposeVehicle (SPV), a company which will own,build, operate and maintain the LeatherIndustryParkstartedinNovember2015.

The LEA in collaboration with the Ministryof Agriculture conducted consultationswithkeystakeholdersinSeptember2015toraiseawarenessonhides and skins improvementandrelatedActs.Furtherconsultationswiththe Botswana Meat Commission, LobatseTown Council and the Lobatse communitywere also held during the period underreview. Inaddition, four regionalworkshopswere held in Palapye, Gaborone, Kang andMaunregardingtheLeatherIndustryPark.

Kutla Incubation Centre

The implementationof theKutla IncubationCentre is meant to address lack ofentrepreneurial skills amongst the out ofschool youth and thedisadvantagedgroupsin the society. In addition, the model willempower the potential beneficiaries ofGovernment schemes before disbursementoffundstoreduceprojectfailurerates.TheprogramalthoughsimilartotheconventionalLEA Incubation, will differ in short timeapprenticeshipinclination.

The 12 projects that will be incubated are:toilet rollmanufacturing,maize flakes (cornflakes), biscuit (cookies)/bread making,sunflower oil extraction, detergent liquidmaking, packaging solutions (granulesand powder), tomato ketchup, wire nailmaking, socks knitting, soyamilkextraction,potato wafers making and ice cream conemanufacturing.

Refurbishment of the premises is completeexcept for modifications which includeadditional toilets, provision of naturalventilation in some offices and waterconnection.Acquisitionofplantmachineryisinprogress,with10outof12plantshavingbeen acquired from India, and expectedto be delivered in June 2016. Regardinghumanresourcesforthisproject,allrelevantpersonnel have been identified, and willbeofferedas soonas theproject fundsareavailed.

Horticulture 40 project

TheHorticulture40projectaimsataffordinghorticulturalists an opportunity to producevarious crops in a commercial set-up, an exercise that will improve local productionand therefore reduce importation of fruitsand vegetables. LEA therefore continues toengageandconsultwithstakeholderssuchastheMinistryofAgricultureandtheMinistryofLands, inordertoallocatehorticultureplotstofarmerswhoLEAhasidentifiedtohavetheright skills andexperience to operate farmsalongtheeasterncorridorofBotswana.

RESEARCH STUDIES

Duringthe2015-2016financialyear,theLocalEnterpriseAuthorityconcludedfourresearchstudies namely: the Fishery Value ChainAnalysis, The Botswana Meat Commissionby-productsStudy,theCustomerSatisfactionSurvey and Kutla Incubation CentreMarketProfiles.TheneedtocarryoutthesestudiesisaspertheSmallBusinessActwhichrequirestheAuthoritytoconductmarketsurveysforthebenefitofSMMEs.

Fishery value Chain Analysis

Themainobjectiveofthisstudywastoanalyzethe performance of the Botswana fisheryindustrywiththeviewtomapitsvaluechainforfuturedevelopmentandidentificationofbusinessopportunitiesforuptakebySMMEs.The study identified the infancy nature ofthe industry and the main blockages thatwillneedtobeaddressedto facilitateentryandestablishmentofsustainablebusinesseswithin the sector. The lack of skills in

aquaculture, inadequate extension servicesandthelackoffishprocessingfacilitiesweresomeoftheinhibitingfactorsidentified.Thebusinessopportunitiesidentifiedinthisstudyinclude amongst others establishment offish farms,fingerlingsproduction,fish feedsprocessing, cold chain transport and fishprocessingplants.

Botswana Meat Commission by-products study

The main objective of this study was toestablish and quantify the unutilised beefby-products from the Botswana MeatCommission, with a view to identifyingbusinessopportunitiesforuptakebySMMEs.Thestudyconfirmedthat tallow,oneof theidentified by-products from this study, willin future be used as raw material in themanufacturingofsoapattheKutlaIncubationCentre.Theotheridentifiedby-productsthatare currently not fully exploited are bile,hairballs,serum,bloodandcarcassmeal.

Kutla Incubation Centre Market Profiles

LEA conducted five market profiles for thefollowing products that will be piloted atthe Kutla Incubation Centre; breadmaking,sunflower oil extraction, biscuits making,toiletpapermanufacturingandmaizeflakesmaking. The market profiles will providekey market information for the projectbeneficiaries as they establish their ownbusinessesafterthetraining.

Customer Satisfaction Survey

LEAasanISO9001:2008certifiedorganizationregularlycollectscustomerfeedbackthroughthe conduct of the Customer SatisfactionSurveys. The 2015-2016 Customer Surveyreturned a satisfaction level of 87% againstthe organizational target of 80%, indicatingthat LEAcustomersarehighly satisfiedwithitsproductsandservices.

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Development of a Competitive

SMME Community

However, the business plan approval rate remains low as financiers continue to regard SMMEs as high risk and therefore apply overly cautious measures on consideration for funding. LEA will continue to take a proactive approach in recruitment of new businesses with potential for business plan development by conducting targeted outreach programmes in order to assist Batswana start and grow their businesses.

nUMBER OF nEW SMMES

LEA continues to enroll new SMMEs intoits portfolio, as evidenced by 113 SMEsregistered against a target of 127, and 4460 MEsregisteredagainstatargetof1800.ThesurgeinthenumberofnewSMMEsseekingLEA services was mainly a result of theintensifiedoutreachprogrammesundertakenduring the period such as roadshows tomarket LEA services, and the demand forour service to meet the requirements forobtaining grants from the Department ofGender affairs and the Ministry of Youth,SportandCulture.

TRAInInG AnD SKILLS DEvELOPMEnT

During the financial year 2015-16, theAuthority administered basic businesstraining to a total of 2049 participants (LEAand non- LEA clients) against the targeted1700.TheyweretrainedonEntrepreneurshipDevelopment Training (EDT), businessplanning, sales and marketing and recordskeeping. Inaddition,464SmallandMedium

Enterprisesreceivedadvancedsectorspecifictraining in foodsafety,vegetableproductionand the use of agro-chemicals. They werealso trained on customer care, corporate governance, computer skills and finance fornon-financeManagers.

Furthermore, 144 LEA assisted Enterpriseswere coached and mentored on variousaspects consisting of branding, packagingand labelling, Intellectual Property Rights(IPR),managementsystemscertificationandproductcertification.

CLUSTER DEvELOPMEnT

TheAuthoritycontinuestocreateawarenessamongstbusinessownersacrosssectors,onthebenefitstheycanderivefromclustering.During the 2015-16 financial year, 29 smallstock and dairy farmers inMahalapyeweretrainedonclusteringandformingassociationsthatwillboosttheirbusinessesgoingforward.Inanendeavourtofacilitateimplementationoftheclusterconcept,theLEAhasfacilitated

LEA assisted Enterprises were coached and mentored on various aspects including branding, packaging and labelling, Intellectual Property Rights (IPR), management systems certification and product certification.

BUSInESS PLAnnInG AnD CREDIT FACILITATIOn

During the 2015-16 financial year, the organization facilitated development and submission of 69

business plans worth P33.1million to various financing institutions. The business plan development

process remains a functional pre-requisite to increase investment value through converted business

plans, number of new SMMEs, and employment creation.

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theregistrationoftheLakeNgamiFishermentoformafunctionalcluster.Theclusterwasalsoassistedtodevelopabusinessproposal/plantoseekfundingforitsoperations.

CREATIOn AnD DEvELOPMEnT OF LInKAGES

TheAuthority,working incollaborationwithstakeholders,continuestofacilitateexposureto potential markets for assisted SMMEs.Duringthe2015-16financialyear,atotalof50LEASMEswereassistedtoattendtradefairsatsubsidizedrates.Tradefairsgaveexhibitingenterprises an opportunity to meet buyersof various products and services, as well as discuss market requirements to be met.Theclientsalsousedthetradefairstoshareideas with other exhibitors and developednetworks that enhance business growth. Atotalofsix(6)localtradefairswereattended,namely Business Botswana NorthernTrade Fair, Gantsi Agricultural Show, ChobeAgriculturalShow,NationalAgriculturalShow,ConsumerFairandtheGlobalExpo.

The Authority also partnered with theBotswanaInvestmentandTradeCentre(BITC)and the Botswana Tourism Organization(BTO) to facilitate for SMEs participation atthe Southern African International TradeExhibition (SAITEX) in South Africa, theZimbabwe International Trade Fair, theMaputo International Trade Fair and theIndaba Travel and Tourism Fair in SouthAfrica.

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ADOPTED MODELS FOR LEA InCUBATORS

The Glen Valley Horticulture

Incubator training with

p r o d u c t i o n m o d e l i s

progressing well and has

attracted a number of clients.

Unlike in the other incubators

with a two year incubation

programme, the Glen Valley

programme is only one

cropping season which is nine

months for the current crop

(tomato production).

Business Incubation Programme

The overall performance of the incubator

was satisfactory as the incubatees

complied with training requirements,

with only one client dropping out due

to non-compliance out of the 14 clients

who were incubated. The produce was

also of good quality and supplied to a

number of wholesalers and retail stores.

The Gaborone Leather Industries Incubatorhas been converted into a training andincubationcentre.TrainingwasconductedforGaboroneTechnicalCollegeforthreegroups(eachgrouphad25 learners) anda tannerygroupofsevenfromMabesekwavillageintheCentralDistrict.AccreditationofLEAtrainersis ongoing with the Botswana QualificationAuthority (BQA). Average performance ofthe incubator was low during the periodunderreviewduetodifficultyinsourcingrawmaterial as most leather used is imported.As at March 2016, the incubator was 75%occupied, and incubatees manufacturedleather products such as belts, handbags,traditionalattireandcrafts.

The Pilane Multi-Purpose Incubatorimplementationof the re-modellingprocessto change it into a food processing andmanufacturing industryhasbeensuccessful,with all the shells having been convertedaccordingly. Accreditation of trainers withBQAhasalsostarted.Duringtheperiodunderreview, the incubator had an occupancyrate of 100%, with tenants engaging invarious activities such as food processing,chemicalproduction, textilesanddoormatsmanufacturing.

The Francistown Industrial BusinessIncubation (FIBI) is implementing the re-modelling operations of a multi sectorialincubator dealing with metal works,carpentry, textiles and other services. FIBIintends to leverage on the mining sectoraround Francistown, to manufacture and supplyspecialmachinepartsrequiredbythemines.AsatMarch2016,theoccupancyratestood at 50%, and accreditation of trainerswithBQAisinprogress.

The produce was also of good quality and supplied to a number of wholesalers and retail stores.

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SPARKBIGGER THINGS

WITH LEA

09

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Empowering Entrepreneurs

Building Botswana

2015 Botswana smmE Pitso & Seminar

The Pitso is a stakeholder engagement

initiative that aims at bringing together

all stakeholders that have a role in the

development of the SMME sector in

Botswana, to deliberate on issues that

concern the SMMEs. The platform

also allows sharing of success stories

and collective mapping of solutions to

improve the business environment for

SMMEs to flourish.

The 2015 Pitso drew participants from

the Parastatals, Government Ministries,

and Departments, the private sector,

the SMMEs and the general public. The

SMME Pitso was officially opened by

the Minister of Investment, Trade and

Industry Hon. Vincent T. Seretse, with a

local businessman and owner of AT & T

Transport Mr Abel Monnakgotla as the

Guest Speaker.

Seminars

The 2015 SMME Pitso also featuredseminars which were conducted by variousstakeholders consisting of capacity buildinginstitutions, buyers, financial and businessdevelopmentinstitutions.Theseminarsserveas information dissemination fora, whereSMMEs interact with facilitators to discussservices they offer, for the advancement oftheirenterprises.TheeightorganizationsthatpresentedweretheEconomicDiversificationDrive (EDD) Unit of the MITI, BotswanaExporters and Manufacturers Association(BEMA), Botswana Tourism Organization(BTO),Selibe-PhikweEconomicDiversificationUnit (SPEDU), Competition Authority (CA),BancABC, Public Procurement and AssetDisposal Board (PPADB) and BotswanaUnifiedRevenueServices(BURS).

The platform allows sharing of success stories and collective mapping of solutions to improve the business environment for SMMEs to flourish.

The Local Enterprise Authority on the 23rd April 2015

facilitated and hosted the 5th annual SMME Pitso and Seminar

under the theme “Unlocking SMMEs Potential: A Key to

Competitiveness and Economic Diversification.”

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COLLABORATIOnSThe Local Enterprise Authority continuesto engage in strategic partnerships withother institutions, in order to enhanceservice delivery andwiden the base of LEAinterventions’ recipients. During the 2015-16financialyear, theAuthoritycollaboratedwiththefollowingstakeholders:

Department of national Internship Programme (DnIP)

LEAandtheDNIPcollaboratedontheyouthbusiness mentorship initiative that aims atattracting young start-up entrepreneurs,who can be mentored by existingbusinesses through on-the-job training. Theentrepreneur is attached to the sponsoringcompany that they are in the same line ofbusinesswith.Theprogrammeprovidestheyouth an opportunity to learn necessarybusiness management skills and prepare

them to manage their own businesses infuture. The DNIP identifies “would-be-entrepreneurs” and provides them with anallowance during their year of mentoring.Seven intern officers were attached to LEAassisted enterprises during the 2015-16financialyear.

Ministry of Youth, Sports and Culture (MYSC)

LEAcollaboratedwiththeMinistryofYouth,Sports and Culture in order to assist theyouthprojectswith trainingandmentoring.Theinitiativewaspromptedbythefactthatmany youth projects were either collapsingorstrugglingtosustain,assuch,therewasaneedtopartnerwiththeMinistrytoempowertheyouthofficerswithrelevantskillsneededto monitor youth projects/beneficiaries.Thisfinancial yearalone the LEA trained61Officers on project management, against atarget of 75. The training for youth officerscametoanendinAugust2015.

Directorate of Public service Management (DPSM)

The partnership between LEA and DPSMwas necessitated by the need to equipsome of the DPSM officers with relevantbusiness skills that could enable them tostarttheirownbusinesses.LEAthenofferedEntrepreneurship Development Trainingand Entrepreneurship AwarenessWorkshop(EAW)to257and229officersrespectively.

Botswana Institute for Technology Research and Innovation (BITRI)

LEA trained 55 BITRI officers onEntrepreneurship Development Training(EDT), while 53 were trained on businessplanning.

Ministry of Lands and Housing (MLH)

Twenty-two employees of the Ministry ofLandsandHousingreceivedEntrepreneurshipDevelopmentTraining(EDT)fromLEA.

Botswana Accountancy College (BAC)

LEA and Botswana Accountancy College (BAC) signed a five year Memorandum ofUnderstanding (MoU) in 2014, where theCollege students would be attached to LEAassistedenterprisestoacquirepracticalskills,identify challenges faced by the enterprisesas well as devise relevant remedies to improve these businesses. The projectimplementationcontinuedin2015-16where50 students were attached to 10 SMMEsin Gaborone, Molepolole, Ramotswa andMochudi,comparedto17studentsattachedto five enterprises during the 2014-15financialyear.

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Enhancing service Delivery

LEA maintains a QMS in accordance with the requirements of

the international ISO 9001:2008 Standard. The QMS was first

certified in 2009 by the Botswana Bureau of Standards (BOBS).

The 2015-2016 financial year marked another milestone

for the LEA QMS, as the LEA’s BOS ISO 9001:2008 license

was re-validated for another three (3) years, subsequent

to a rigorous re-certification audit by BOBS. This second re-

certification, since 2009, extended the certification validity

period from 14th August 2015 to 13th August 2018, subject

to bi-annual surveillance audits in the interim. In possession of

a certified QMS, LEA is counted amongst the over 1.5 million

organizations worldwide that are committed to customer

satisfaction through the ISO 9001:2008 standard.

THE LEA QUALITY MAnAGEMEnT SYSTEM

The Authority recognises the importance of customer certification hence the continued commitment

to the Quality Management System (QMS) in its endeavour to standardize service delivery within

all its customer touch points.

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LEA is counted amongst the

over 1.5 million organizations

worldwide that are committed to

customer satisfaction through

the ISO 9001:2008 standard.

SPARKBIGGER THINGS

WITH LEA

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LEA and its Human Resources

In an effort to ensure the implementation of the LEA strategy, the organization continues to recruit

and strive to retain its personnel. This is achieved in part by motivating staff through various

platforms and creating a conducive working environment. Staff Engagement remains one of

the key initiatives ensuring that the staff is meaningfully engaged and have a sense of fulfilment

working for the Authority.

307 STAff COMPLEMEnT across LEA offices countrywide.

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As at 31st March 2016, the Authority’s

staff complement stood at 322 against

an establishment of 349, (which is an

increase of 4.9%) as compared the

March 2015 figure of 307. During the

period under review, the Authority was

faced with challenges in terms of staff

turnover. The actual turnover for all

staff stood at 7.5% against a target of

13%, which is the same as the turnover

realised in the 2014-15 financial year.

However, 38% of the turnover was from

mission critical positions, translating

into actual turnover of 7.3% against

the target of 7% set for mission critical

staff. This shows negative performance

against our target on staff retention

which impacts delivery of the LEA

mandate.

Capacity building

Inorder todrive theorganizational strategyand implement the planned projects, LEAtrained195employeesduringtheperiod,anincreasefromthe127trainedinthepreviousyear.Thetrainingfocusedoncapacitybuildingin entrepreneurship development, smallbusinesspromotionaswellas improvementof skills for support services staff. Withthesetrainingprogrammes,employeesweremotivatedtoenhanceservicedeliveryastheyassist the entrepreneurs to start and growtheir businesses. The employees are alsoencouraged to enrol for self-development programmes, while the Authority accordsthemstudyadvancesandexaminationleaveduringtheirperiodofstudy.

Staff welfare

In recognition and appreciation of theemployees’ commitment and contributionin the attainment of the organizationalobjectives, two employees were awardedforhavingservedtheAuthorityfor10years,while31receivedfiveyears’serviceawards.The total number of employees who havebeenwiththeorganizationformorethanfiveyearscontinuestogrow,andthisisapositivedevelopmentasitenhancescontinuityintheorganization.

In an effort to improve staff engagement,LEA engaged Independent Counselling and Advisory Services (ICAS) Botswana toprovide Staff Wellness Programmes suchas counselling services, motivational healthtalksandManagementConsultancySupportto staffmembers inneedof these services.The services have proven to boost staffmorale and engagement, as they also givesupport on work and psycho-social relatedmatters. As at March 2016, 72 employeeshad utilized the ICAS services, compared to46duringthe2014-15financialyear.

Employee relations

Ever since LEA signed a recognition agreement with the Botswana PublicEmployees Union (BOPEU) in September2014, the parties continue to engage eachotherinaharmoniousenvironmentwiththecommon goal of creating a conduciveworkrelationship.ThepartiesengagethroughtheJoint Negotiations Consultative Committeewhichholdsquarterlymeetings.

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LEA Corporate social Investment (CSI) Initiatives

In a bid to heed the Ministry

of Education and Skil ls

Development “Adopt a School”

initiative, as well as uphold

the Vision 2016 Pillar of “An

Educated and Informed

Nation”, LEA adopted Mpiti

Primary School in Matobo

village for a three year period.

The three year partnership between the school and LEA ended in 2015, with the Authority sponsoring yet another prize giving ceremony, a gesture that aimed at awarding and motivating outstanding performance amongst the pupils. In addition, the 2015 prize giving ceremony saw the Authority award students an innovative mobile study table called Desk Buddy, which has a solar lamp to aid the students to study even when there is no electricity.

Furthermore, the Serowe Branch donatedclothing to the SOS village in Serowe,whileMasungaBranchhandedgroceriestoaneedyfamily in Semitwe village in the TutumeSub-District. These efforts depict that theorganization is alive to the socio-economicchallenges experienced by the communitiesthat LEA serves as a business developmentservice provider, and intends to continueuplifting the livelihoods of the beneficiariesinBotswana.

These efforts depict that the organization is alive to the socio-economic challenges experienced by the communities that LEA serves.

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ANNUAL FINANCIAL STATeMeNTS

COnTEnTS Page

Authority information 44

Statement of responsibility by the Members of the Board 45

Report of the independent auditors 46

Statement of comprehensive income 47

Statement of financial position 48

Statement of changes in funds 49

Statement of cash flows 50

Significant accounting policies 51-55

Financial risk management 56-57

Critical accounting estimates and judgements 58

notes to the financial statements 59-69

Detailed income statement - Annexure I 70notes to the detailed income statement - Annexure II 71

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AUTHORITY INFORMATION

Business operations TopromoteandfacilitateentrepreneurshipandSMMEdevelopmentinBotswanathroughtargetedinterventionsinpursuitofeconomicdiversification. Authority registration TheAuthoritywasincorporatedundertheSmallBusinessActNo.7of2004 Members of the Board MrBatlhatswiTsayang(Chairman)MrsMasegoMarobelaMrOabileRegoengMrsPatienceMotswagoleMrThatayaoneMolefhiMrsBilkissMooradMrRockieG.M.MmutleMsNellyWamasegoSenegeloDrHanisoMotlhabaneMrsMamaM.Maite

Registered address 2ndFloor,BlockA,Plot50676FairgroundsOfficeParkGaborone

Postal address PrivateBag191Gaborone

Auditors PricewaterhouseCoopers Bankers StandardCharteredBankBotswanaLimitedFirstNationalBankofBotswanaLimitedBarclaysBankofBotswanaLimited

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STATeMeNT OF ReSPONSIBILITY BY THe MeMBeRS OF THe BOARD for the year ended 31 March 2016

TheMembersoftheBoardoftheLocalEnterpriseAuthorityareresponsiblefortheannualfinancialstatementsandallotherinformationpresentedtherewith.TheirresponsibilityincludethemaintenanceoftrueandfairfinancialrecordsandthepreparationofannualfinancialstatementsinaccordancewithInternationalFinancialReportingStandardsandinthemannerrequiredbytheSmallBusinessActBotswana(Cap.25).

The Authoritymaintains systems of internal control,which are designed to provide reasonable assurance that the records accuratelyreflectitstransactionsandtoprovideprotectionagainstseriousmisuseorlossofAuthorityassets.TheMembersoftheBoardarealsoresponsibleforthedesign,implementation,maintenanceandmonitoringofthesesystemsofinternalfinancialcontrol.NothinghascometotheattentionoftheMembersoftheBoardtoindicatethatanysignificantbreakdowninthefunctioningofthesesystemshasoccurredduringtheyearunderreview.

Thegoingconcernbasishasbeenadoptedinpreparingtheannualfinancialstatements.TheMembersoftheBoardhavenoreasontobelievethattheAuthoritywillnotbeagoingconcernintheforeseeablefuturebasedonforecastsandavailablecashresourcesandsupportfromGovernmentofBotswana.

OurexternalauditorsconductanexaminationofthefinancialstatementsinconformitywithInternationalStandardsonAuditing,whichincludetestsoftransactionsandselectivetestsofinternalaccountingcontrols.Regularmeetingsareheldbetweenmanagementandourexternalauditorstoreviewmattersrelatingtointernalcontrolsandfinancialreporting.TheexternalauditorshaveunrestrictedaccesstotheMembersoftheBoard.

Thefinancialstatementssetoutonpages47 to69andthesupplementaryinformationonannexureItoIIwereauthorisedforissueinaccordancewitharesolutionoftheMembersoftheBoardon1November2016andaresignedontheirbehalfby:

____________________ ________________________ Chairman ChiefExecutiveofficer

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INDePeNDeNT AUDITOR’S RePORT to the Members of Local enteprise Authority

Report on the Financial StatementsWehaveauditedtheaccompanyingfinancialstatementsofLocalEnterpriseAuthority,whichcomprisethestatementoffinancialpositionas at 31March2016, and the statementof comprehensive income, changes in funds and cashflows for the year thenended, andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes,assetoutonpages47 to69.

Members’ Responsibility for the Financial StatementsTheAuthority’smembersare responsible for thepreparationoffinancial statements thatgivea trueand fairview inaccordancewithInternationalFinancialReportingStandards,andforsuchinternalcontrolasthemembersdetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

Auditor’s ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainauditevidenceabout theamountsanddisclosures in thefinancial statements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to theentity’spreparationoffinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion. OpinionInouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialpositionofLocalEnterpriseAuthorityasat31March2016,andofitsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithInternationalFinancialReportingStandards.

Individual practising member:ButlerPhirie Gaborone

Practising number: 19900312 Date: 18November2016

STATeMeNT OF COMPReHeNSIVe INCOMefor the year ended 31 March 2016

2016 2015notes P P

Revenuegrants 147,708,000 144,200,000

Amortisationofcapitalgrants 13 6,565,746 11,008,532

Otheroperatingincome 4 6,120,690 2,330,027

Recurrentexpenditure 4 (171,555,611) (156,993,175)

Operating (deficit) / surplus (11,161,175) 545,384

Finance income 6 1,547,286 1,836,135

net (deficit) / surplus for the year (9,613,889) 2,381,519

Comprehensive income - -

Total comprehensive (deficit) / surplus for the year (9,613,889) 2,381,519

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STATeMeNT OF FINANCIAL POSITION as at 31 March 2016

2016 2015notes P P

ASSETS

non-current assets

Property,plantandequipment 9 82,858,221 78,736,898

Intangibleassets 10 14,770,492 -

97,628,713 78,736,898

Current assets

Receivablesandprepayments 11 6,278,901 7,014,846

Cashandcashequivalents 12 33,645,670 32,929,277

39,924,571 39,944,123

Total assets 137,553,284 118,681,021

FUnDS AnD LIABILITIES

Funds

Accumulated (deficit) / surplus (7,302,270) 2,311,619

(7,302,270) 2,311,619

non-current liabilities

Capital grants 13 94,132,027 94,697,775

Current liabilities

Trade and other accounts payable 14 49,871,192 18,910,702

Borrowings 15 852,335 2,760,925

Total liabilities 50,723,527 21,671,627

Total funds and liabilities 137,553,284 118,681,021

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STATeMeNT OF CHANGeS IN FUNDS as at 31 March 2016

Accumulated (deficit)/

Surplus P

Balance for the year ended 31 March 2015

Balance at 01 April 2014 (69,900)

Total comprehensive surplus for the year 2,381,519

Balance at 31 March 2015 2,311,619

For the year ended 31 March 2016

Balance at 01 April 2015 2,311,619

Total comprehensive deficit for the year (9,613,889)

Balance at 31 March 2016 (7,302,270)

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STATeMeNT OF CASH FLOWS for the year ended 31 March 2016

2016 2015notes P P

Operatingdeficitfortheyear (11,161,175) 545,384

Adjustedfor:NoncashitemsDepreciationofProperty,plantandequipment 9 5,882,122 8,732,857 Amortisationofcapitalgrants 13 (6,565,746) (11,008,532) Amortisationofintangibleassets 10 4,923,497 - Profitondisposalofproperty,plantandequipment (678,981) (117,750)Changesinworkingcapital Receivablesandprepayments 803,342 4,068,353 Tradeandotheraccountspayable 30,960,490 1,336,624

24,163,549 3,556,936 Netcashgeneratedfromoperatingactivities 24,163,549 3,556,936

Cash flows from investing activitiesInterest received 6 1,479,889 1,793,507 Acquisitionofproperty,plantandequipment 9 (10,003,445) (6,949,491)Acquisitionofintangibleassets 10 (19,693,989) -Proceedsfromdisposalofproperty,plantandequipment 678,981 117,750

Netcashusedininvestingactivities (27,538,564) (5,038,234)

Cash flows from financing activitiesCapital grants received 13 5,999,998 24,000,057

Netcashgeneratedfromfinancingactivities 5,999,998 24,000,057

net increase in cash and cash equivalents 2,624,983 22,518,759 Cashandcashequivalentsatbeginningofyear 30,168,352 7,649,593

Cash and cash equivalents at end of year 12 32,793,335 30,168,352

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SIGNIFICANT ACCOUNTING POLICIeSfor the year ended 31 March 2016

General information

Local Enterprise Authority carrieson the business to promote andfacilitate e n t r e p r e n e u r s h i p a n denterprise development in Botswana through targeted interventions. The entityis an authority, a Government parastatal,incorporated and domiciled in Botswana.The address of its registered office is 2ndfloor; Block A, Plot 50676, FairgroundsOffice Park, Gaborone. The financialstatements set out on pages 47 to69havebeen approved by the Members of theBoardon1November2016.

1 Summary of significant accounting policies

The principal accounting policiesadopted in the preparation of thesefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyapplied to all the periods presented,unlessotherwisestated.

1.1 Changes in accounting policy and disclosure

(a) new and amended standards adopted by the Authority

The following new standards,amendments and interpretations toexisting standards aremandatory forthe company’s accounting periodsbeginningonorafter1April2015.

• IFRS13,‘Fairvaluemeasurement’(Amendment):WhenIFRS13waspublished, paragraphs B5.4.12of IFRS 9 and AG79 of IAS 39were deleted as consequentialamendments. This led to aconcern that entities no longerhadtheabilitytomeasureshort-term receivables and payablesat invoice amounts where theimpact of not discounting isimmaterial.(Effectivefrom1July2014)

• IAS 24, ‘Related partydisclosures’: The standard isamended to include, as a related party, an entity that provideskey management personnelservices to the reporting entityortotheparentofthereportingentity(‘themanagemententity’)(Effectivefrom1July2014)

(b) new and amended standards applicable to the current period but not applicable to the Authority.

Management assessed therelevance of the following newstandards, amendments and interpretations with respect tothe Authority’s operations andconcluded that they are notrelevanttotheAuthority.

• IFRS13‘Fairvaluemeasurement’,The amendment clarifies thatthe portfolio exception in IFRS13, which allows an entity tomeasure the fair value of agroup of financial assets andfinancialliabilitiesonanetbasis,applies to all contracts (including non-financial contracts) withinthe scope of IAS 39 or IFRS 9.(Effective1July2014)

• IAS 40, ‘Investment property’-The standard is amended toclarify that IAS 40 and IFRS 3are not mutually exclusive.The guidance in IAS 40 assistspreparerstodistinguishbetweeninvestment property and owner-occupied property. Preparersalso need to refer to theguidance in IFRS3 todeterminewhether the acquisition of aninvestmentpropertyisabusinesscombination. (Effective 1 July2014)

• IFRS 3, ‘Business Combinations’-The standard is amended toclarify that IFRS 3 does notapply to the accounting forthe formation of any jointarrangementunder IFRS11.Theamendment also clarifies thatthescopeexemptiononlyappliesin the financial statements ofthe joint arrangement itself.(Effective1July2014)

• IAS 19 ‘Employee benefits’,on def ined benef i t p l ans(Amendment) : The objective ofthe amendments is to simplifythe accounting for contributionsthat are independent of thenumber of years of employeeservice, for example, employee contributionsthatarecalculatedaccording to a fixed percentageofsalary.(Effective1July2014)

• IFRS 1, ‘First-time adoptionof International Financial Reporting Standards’: The basisfor conclusions on IFRS 1 isamendedtoclarifythat,whereanew version of a standard is not yet mandatory but is availablefor early adoption; a first-timeadopter can use either the oldor the new version, providedthe same standard is applied inall periods presented. (Effectivefrom1July2014)

• IFRS 8 ‘Operating segments’,(Amendments) -The standard isamended to require disclosureof the judgements made bymanagement in aggregating operatingsegments.Thisincludesa description of the segmentswhich have been aggregatedand the economic indicatorswhich have been assessed indeterminingthattheaggregatedsegmentssharesimilareconomiccharacteristics. (Effective 1 July2014)

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1.1 Changes in accounting policy and disclosure (continued)

(b) new and amended standards applicable to the current period but not applicable to the Authority. (continued)

• IAS 16, ‘Property, plant andequipment’, and IAS 38,‘Intangibleassets’,Bothstandardsare amended to clarify how thegross carrying amount and theaccumulated depreciation aretreatedwhereanentityusestherevaluation model. The carryingamountoftheassetisrestatedtotherevaluedamount.(Effective1July2014)

(c) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Authority

The following new standards,amendmentsandinterpretationsto existing standards are mandatory for the Authority’saccountingperiodsbeginningonorafter1April2015.Thesehavenot been early adopted by thecompany.

new standards, amendments and interpretations which are relevant to the Authority’s operations

• IAS1,(Amendment)–‘‘Presentationoffinancial statements’ disclosureinitiative. In December 2014the IASB issued amendmentsto clarify guidance in IAS 1 on materiality and aggregation, thepresentation of subtotals, thestructureoffinancial statementsandthedisclosureofaccountingpolicies.Effectivefrom1January2016)

• IFRS 7, ‘Financial instruments;disclosures’: The amendmentremovesthephrase’andinterimperiods within those annualperiods’ from paragraph 44R,clarifying that these IFRS 7disclosures are not required inthe condensed interim financialreport.However,theBoardnotedthat IAS 34 requires an entityto disclose an explanation ofeventsand transactions thataresignificanttoanunderstandingofthe changes infinancialpositionand performance of the entitysince the endof the last annualreporting period’. Therefore, ifthe IFRS 7 disclosures providea significant update to theinformationreportedinthemostrecent annual report, the Boardwould expect the disclosuresto be included in the entity’scondensed interim financialreport. (Effective from1 January2016)

• IFRS 9, Financial Instruments(2009&2010)financialliabilities,derecognition of financialinstruments, financial assets& general hedge accounting:The IASB has updated IFRS 9,‘Financialinstruments’toincludeguidance on financial liabilitiesand derecognition of financialinstruments. The accountingand presentation for financialliabilities and for derecognisingfinancial instruments has beenrelocated from IAS39, ‘Financialinstruments: Recognition andmeasurement’, without change,except for financial liabilitiesthat aredesignated at fair valuethrough profit or loss. (Effectivefrom1January2018)

• IAS 7 ‘– Cash flow statements’(Amendments) In January 2016,the International AccountingStandardsBoard(IASB)issuedan

amendment to IAS 7 introducing an additional disclosure thatwill enable users of financialstatements to evaluate changesinliabilitiesarisingfromfinancingactivities. The amendmentresponds to requests frominvestors for information thathelps them better understandchanges in an entity’s debt. Theamendment will affect everyentity preparing IFRS financialstatements. (Effective 1 January2017)

• IFRS16-A lesseemeasures leaseliabilities at the present valueof future lease payments. Alessee measures lease assets, initially at the same amountas lease liabilities, and alsoincludes costs directly related toentering into the lease.Leaseassetsareamortised inasimilarway to other assets such asproperty, plant and equipment.This approach will result in amore faithful representation ofa lessee’s assets and liabilitiesand, together with enhanceddisclosures, will provide greater transparency of a lessee’sfinancial leverage and capitalemployed.(Effective 1 January2019)

Management is currently assessing the impact of theapplication of these newstandards, amendments and interpretationsontheAuthority’sfinancialstatementsintheperiodofinitialapplication.Atthistime,the adoptionof these standardsand interpretations is onlyexpected to have an impact onthe classification and disclosureof items in the Authority’sfinancialstatements.

SIGNIFICANT ACCOUNTING POLICIeS (continued)for the year ended 31 March 2016

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1.2 Property, plant and equipment

All property, plant and equipmentare included at historical cost lessdepreciation. Historical cost includesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Subsequent costs are included in theasset’scarryingamountorrecognisedas a separate asset, as appropriate, only when it is probable that futureeconomic benefits associated withthe item will flow to the Authorityand the cost of the item can bemeasured reliably. All other repairsandmaintenance are charged to thestatement of comprehensive incomeduring the financial period in whichtheyareincurred.

Depreciation is calculated using thestraight-line method to allocate thecost of each asset to their residualvaluesovertheirestimatedusefullivesasfollows:

Landandbuildings 40years Leaseholdimprovement 5years Plantandequipment 4years Furnitureandfittings 10years Officeequipment 5years Motorvehicles 4years Computerequipment 4years Librarybooks 5years

Theassets’residualvaluesandusefullives are reviewed, and adjusted ifappropriate, at each reporting date.Anasset’s carryingamount iswrittendown immediately to its recoverableamount if the asset’s carryingamount is greater than its estimatedrecoverableamount.

Gains and losses on disposals are determined by comparing theproceeds with the carrying amountand are recognised within othergains/(losses) in the statement ofcomprehensiveincome.

1.3 Impairment of non-financial assets

Assets that have an indefinite usefullifearenotsubjecttoamortisationandare tested annually for impairment.Assetsthataresubjecttoamortisationarereviewedforimpairmentwheneverevents or changes in circumstancesindicatethatthecarryingamountmaynotberecoverable.

An impairment loss is recognised for the amount by which theasset’s carrying amount exceeds itsrecoverableamount. The recoverableamount is the higher of an asset’sfair value less costs to sell and value inuse. For thepurposesof assessingimpairment, assets are grouped at the lowest levels forwhich there areseparately identifiable cash flows(cash-generating units). Non-financialassets other than goodwill thatsufferedimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate.

1.4 Financial assets

1.4.1 Classification The Authority classifies its financial

assets in the following categories:at fair value through profit or loss,loans and receivables, and availableforsale.Theclassificationdependsonthe purpose for which the financialassets were acquired. Managementdetermines the classification of itsfinancialassetsatinitialrecognition.

Financial assets at fair value through profit or loss

Financial assets at fair value throughprofit or loss are financial assetsheld for trading. A financial asset isclassified in this category if acquiredprincipally for the purpose of sellingin the short-term. Derivatives arealso categorised as held for tradingunlesstheyaredesignatedashedges.Assetsinthiscategoryareclassifiedascurrentassets.

Loans and receivables Loans and receivables are non-

derivative financial assets with fixedor determinable payments that arenotquoted inanactivemarket.Theyare included in current assets, except formaturitiesgreaterthan12monthsafter the reporting date. These areclassified as non-current assets. TheAuthority’s loans and receivablescomprise‘tradeandotherreceivables’and‘cashandcashequivalents’inthestatementoffinancialposition(Notes1.5and1.6).

Available-for-sale financial assets Available-for-sale financial assets

are non-derivatives that are eitherdesignated in this category ornot classified in any of the othercategories.

They are included in non-currentassets unless management intends to dispose of the investment within 12monthsofthereportingdate.

Therearenofinancialassetsclassifiedas fair value through profit or lossandavailable-for-saleatthereportingdate.

1.4.2 Recognition and measurement Regular purchases and sales of

financial assets are recognised onthe trade date, the date on whichthe Authority commits to purchaseor sell the asset. Investments areinitially recognised at fair value plustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitor loss. Financial assets carried atfairvaluethroughprofitor lossesareinitially recognised at fair value andtransactioncostsareexpensed inthestatementofcomprehensiveincome.

Loans and receivables are carried atamortised cost using the effectiveinterestmethod.

SIGNIFICANT ACCOUNTING POLICIeS (continued)for the year ended 31 March 20156

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1.4.2 Recognition and measurement (continued)

Financial assets are derecognised whentherightstoreceivecashflowsfrom the investments have expiredor have been transferred and theAuthorityhastransferredsubstantiallyallrisksandrewardsofownership.

1.4.3 Impairment of financial assets The Authority assesses at each

reporting date whether there isobjective evidence that a financialassetoragroupoffinancialassets isimpaired.ImpairmenttestingoftradereceivablesisdescribedinNote1.5.

1.4.4 Offsetting financial instruments Financial assets and liabilities are

offset and the net amount reportedin the statementof financial positionwhen there is a legally enforceablerighttooffsettherecognisedamountsand there isan intention tosettleona net basis, or realise the asset andsettletheliabilitysimultaneously.

1.5 Receivables

Receivables are recognised initiallyat fair value and subsequentlymeasured at amortised cost usingthe effective interest method, lessprovision for impairment.Aprovisionfor impairment of receivables isestablished when there is objectiveevidence that the Authority willnot be able to collect all amountsdue according to the original termsof receivables. Significant financialdifficulties of the debtor, probabilitythatthedebtorwillenterbankruptcyor financial reorganisation, anddefault or delinquency in paymentsare considered indicators that thereceivable is impaired. The amountof the provision is the differencebetween the asset’s carrying amountand the present value of estimatedfuture cash flows, discounted at theeffectiveinterestrate.

The carrying amount of the asset

is reduced through the use of anallowanceaccount,andtheamountofthelossisrecognisedinthestatementofcomprehensiveincome.

When a receivable is uncollectible,it iswrittenoffagainst theallowanceaccount for receivables. Subsequentrecoveries of amounts previously writtenoffarecreditedintheincome.

1.6 Cash and cash equivalents

Cash and cash equivalents includescashinhand,depositsheldatcallwithbanks, other short-term highly liquidinvestments with original maturitiesof three months or less, and bankoverdrafts.Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesonthestatementoffinancialposition.

1.7 Government grants

Government grants are assistance bygovernment in the form of transfersofresourcestoanentityinreturnforpastorfuturecompliancewithcertainconditions relating to the operatingactivitiesoftheAuthority.

Grants relating to the acquisition ofproperty, plant and equipment arecredited to other comprehensiveincome on a straight line basis overtheexpectedusefullivesoftherelatedassets. The related assets are shownatcostlessaccumulateddepreciation.When an asset financed throughcapitalgrants isdisposedof,thetotalunamortised portion of the capitalgrant relating to theasset is creditedto the statement of comprehensiveincomeintheyearofdisposal.

Operating grants are recognised in

the statement of comprehensiveincome in the period in which therelatedexpenditureisincurred.Grantsreceivedforwhichtherelatedprojecthavenotcommencedare included incurrentliabilitiesasdeferredincome.

1.8 Provisions

Provisionsclaimsarerecognisedwhen,the Authority has a present legal orconstructive obligation as a resultof past events, it is probable that anoutflowof resourceswill be requiredto settle the obligation; and theamount has been reliably estimated.Provisions are not recognised forfutureoperatinglosses.

Where thereareanumberof similarobligations, the likelihood that anoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthe likelihoodofan outflow with respect to any oneitem included in the same class ofobligationsmaybesmall.

Provisions are measured at thepresent value of the expendituresexpected tobe required tosettle theobligation using a pre-tax rate thatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasinterestexpense.

Provisions are reviewed at eachreportingdateandadjustedtoreflectthe current best estimate. If it isno longer probable that an outflowof resources embodying economicbenefitswillberequiredtosettletheobligation,theprovisionisreversed.

1.9 Trade accounts payable

Tradeaccountspayablearerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

1.10 Foreign currency translation

(a) Functional and presentation currency

Items included in the financialstatements are measured using thecurrency of the primary economicenvironment in which the entityoperates (‘the functional currency’).The financial statements arepresented in Botswana Pula, whichis the Authority’s functional and thepresentationcurrency.

SIGNIFICANT ACCOUNTING POLICIeS (continued)for the year ended 31 March 2016

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(b) Transactions and balances

Fore ign currency transact ions are translated into the functionalcurrency using the exchange ratesprevailing at the dates of thetransactionsorvaluationwhereitemsare remeasured. Foreign exchangegains and losses resulting from thesettlement of such transactions andfrom the translation at year-endexchange rates of monetary assetsand liabilitiesdenominated in foreigncurrencies are recognised in thestatementofcomprehensiveincome.

Foreignexchangegainsandlossesthatrelate to cash and cash equivalentsare presented in the statementof comprehensive income within‘finance income or cost’. All otherforeign exchange gains and lossesare presented in the statement ofcomprehensive income within ‘other(losses)/gains.

1.11 Revenue recognition

Government grants Grants from the Government are

recognised at their fair value wherethere is a reasonable assurance thatthe grant will be received and theAuthoritywillcomplywithallattachedconditions. Grants relating to costsare deferred and recognised in thestatement of comprehensive incomeover the period necessary to matchthemwiththecoststheyareintendedto compensate. Grants relating toproperty, plant and equipment areincluded in funds as capital grants and are credited to the statementof comprehensive income on astraight line basis over the expecteduseful livesof therelatedassets.Therelated assets are shown at cost lessaccumulateddepreciation.

Sale of services The Authority sells training and

resource centre services. Theseservices are provided generally as fixedprice.

Sale of services is recognised in the accounting period in which theservicesarerendered,byreferencetocompletionofthespecifictransactionassessed on the basis of the actualserviceprovidedasaproportionofthetotalservicestobeprovided.

Interest income Interest income is recognised using

the effective interest method. Whena loan and receivable is impaired,the Authority reduces the carryingamount to its recoverable amount,being theestimated future cashflowdiscounted at the original effectiveinterest rate of the instrument, andcontinues unwinding the discountas interest income. Interest incomeon impaired loanand receivablesarerecognisedusingtheoriginaleffectiveinterestrate.

Operating lease rentals Leaseswhere a significant portion of

therisksandrewardsofownershipareretainedbythelessorareclassifiedasoperating leases. Payments receivedunder operating leases are creditedto the statement of comprehensiveincome on a straight-line basis overtheperiodofthelease.

1.12 Employee benefits

TheAuthoritycontributestoadefinedcontribution pension plan for itspermanent citizen employees. TheAuthoritycontributionsarechargedtostatement of comprehensive incomeintheyearwhichtheyaccrueandtheAuthorityhasnofurtherliability.

A defined contribution plan is apension plan under which theAuthority pays fixed contributionsinto a separate fund and will haveno legal or constructive obligation topay further contributions, if the funddoesnotholdsufficientassetstopayall employees benefits relating toemployee service in the current andpriorperiods.

Foremployeeswhoareoncontracts,the Authority pays gratuity inaccordance with the respectivecontractsofemployment.

1.13 Current and deferred income tax

The Authority is exempt from tax intermsofthesecondschedule(chapter52.01)oftheIncomeTaxActof1995asamended.

1.14 Operating leases

Leases in which a significant portionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedas operating leases. Payments made/ income received under operatingleases(netofany incentivesreceivedfrom the lessor) is charged to thestatement of comprehensive incomeonastraight-linebasisovertheperiodofthelease.

1.15 Intangible assets

An intangible asset is recognisedwhen:

• it is probable that the expectedfuture economic benefits that areattributable to the asset will flow totheentity;and

• thecostoftheassetcanbemeasuredreliably.

Intangible assets are initial lyrecognisedatcost.

Intangible assets are carried at cost

less any accumulated amortisationandanyimpairmentlosses.

Intangible assets amortisation isprovidedona straight linebasisovertheir useful life. The amortisationperiod and the amortisationmethodfor intangible assets are reviewedeveryperiod-end.

Amortisation is provided to write down the intangible assets, on astraight line basis, to their residualvaluesasfollows:

Item Useful life

Computersoftware 4-10years

SIGNIFICANT ACCOUNTING POLICIeS (continued)for the year ended 31 March 20156

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Less than 1 year More than year 1 year Total P P P

At 31 March 2016 Accounts Payable 49,871,192 - 49,871,192 Borrowings 852,334 - 852,334 At31March2015 AccountsPayable-restated 18,910,702 - 18,910,702 Borrowings 2,760,924 - 2,760,924

FINANCIAL RISK MANAGeMeNTfor the year ended 31 March 2016

2.1 Financial risk factors

The Authority’s activities expose itto a variety of financial risks:marketrisk(includingcurrencyrisk,fairvalueinterest rate risk, cash flow interestrate risk and price risk), credit riskand liquidity risk. The Authority’soverall risk management programmefocuses on the unpredictabilityof financial markets and seeks tominimisepotentialadverseeffectsontheAuthority’sfinancialperformance.RiskmanagementiscarriedoutunderpoliciesapprovedbytheMembersoftheBoard.

(a) Market risk

(i) Cash flow and fair value interest rate risk

As the Authority has neithersignificant interestbearingassetsnorvariableinterestbearingliabilities,theAuthority’sincomeandoperatingcashflows are substantially independentfromchangesinmarketinterestrates.

(ii) Other price risk

TheAuthorityisnotexposedtootherprice risks such as equity price risk,commoditypricerisk,prepaymentriskandresidualvaluerisk.

(iii) Foreign currency risk

The Authority has USD denominatedbankdepositasdisclosedinnote8.3.Management has conducted stresstests on the year-end exchange ratebetween theUSDandPulabasedon5% fluctuation and concluded thatthere is no significant impact on theAuthority’sincome.

(b) Credit risk

Financial assets of the Authority,whicharesubjecttocreditrisk,consistmainly of cash and cash equivalents,deposits with banks and financialinstitutions and SMME customers.Cash deposits are held with high-credit-quality financial institutions.The credit quality of the customersis assessed by credit control, takinginto account its financial position,past experience and other factors.Individual risk limitsaresetbasedoninternalratings.

The utilisation of credit limits isregularly monitored. Sales to SMMEcustomersare settledmainly in cash,chequesorbanktransfers.

Thecreditqualityoffinancialassetsisdisclosedinnote8.2.

(c) Liquidity risk

Prudent liquidity risk managementimpliesmaintainingsufficientcashandmarketable securities, the availabilityof funding through an adequateamount of committed credit facilitiesand the ability to close out marketpositions.Dueto thedynamicnatureof the underlying operations due totheirshorttermnature,managementof the Authority aims to maintainflexibility in funding by keepingcommittedcreditlinesavailable.

The Authority’s financial liabilities as

given in the table below consist ofaccounts payable and borrowings.The analysis of financial liabilitiesinto relevant maturity groupings are basedontheremainingperiodatthereporting to the contractualmaturitydate.

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FINANCIAL RISK MANAGeMeNT(continued)for the year ended 31 March 2016

2.2 Capital risk management

The Authority is a Governmentorganisation with the main objectbeing to promote and facilitateentrepreneurship and SMMEdevelopment. As such all operationsof the Authority are funded byGovernmentandthereforenotsubjecttocapitalrisk.

2.3 Fair value estimation of financial instruments

Financial instruments consist of trade receivables, bank and cash balancesandotheraccountspayablesresultingfrom normal business operations.The nominal value less impairmentprovision of trade receivables andaccounts payable are assumed toapproximate their fair values. Theparticular recognition methodsadoptedaredisclosedintheindividualpolicy statements associated witheachitem.

Estimates and judgements arecontinually evaluated and are basedon historical experience and otherfactors, including expectations offutureevents thatarebelieved tobereasonableunderthecircumstances.

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3.1 Critical accounting estimates and assumptions

The Authority makes estimatesand assumptions concerning thefuture. The resulting accountingestimates will, by definition, seldomequal the related actual results. Theestimates andassumptions thathaveasignificantriskofcausingamaterialadjustment to the carrying amountsofassetsandliabilitieswithinfinancialyeararediscussedbelow.

Impairment loss on debtors

The Authority reviews its receivablestoassessimpairmentonacontinuousbasis. In determining whether animpairment loss should be recordedin the statement of comprehensiveincome, the Authority makesjudgments as to whether there isany observable data indicating thatthere is measurable decrease inestimatedcashflowsfromreceivables.Management uses estimates basedonhistoricallossexperienceofassets.The assumptions used for estimatingtheamountandtimingof cashflowsare reviewed regularly to reduce any differences between loss estimatesandactuallossexperience.

Residual value and useful lives of property, plant and equipment and intangible assets

The Authority determines theestimated useful lives and relateddepreciation charges for its property,plant and equipment and intangibleassets. This estimate is based onprojections about the continuedexistence of amarket for its servicesand intangiblesand theabilityof theAuthority to penetrate a sufficientportion of that market in order tooperate effectively. The Authorityincreases the depreciation chargewhere the useful lives are less thanpreviously estimated, or it willappropriately impair technicallyobsolete or non-strategic assets thathavebeenabandonedoridentifiedforsale.

Residual values are basedon currentestimatesofthevalueoftheseassetsattheendoftheirusefullives.

CRITICAL ACCOUNTING eSTIMATeS AND JUDGeMeNTSfor the year ended 31 March 2016

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4. Surplus for the year Thefollowingitemshavebeencredited/chargedinarrivingatthenetsurplusfortheyear:

2016 2015 P P

(i) Annual government subvention 147,708,000 144,200,000

(ii) Amortisation of capital grants 6,565,746 11,008,532

(iii) Other operating income Profitondisposalofproperty,plantandequipment 678,981 117,750 Rentalincome 685,973 778,096 Sundry income 1,310,598 346,299 Telephonerecoveries 572,900 405,192 Tender fees 25,050 30,200 Training and resource centre income 2,847,188 652,490

6,120,690 2,330,027

(iv) Expenses by natureAuditors'remuneration-currentyear (321,916) (292,000)Auditors'remuneration-prioryear (112,000) -Amortisationofintangibleassets(Note10) (4,923,497) -Annual license fee (4,793,271) - Boardsittingallowance (67,180) (245,024)Businesstravel,accommodationandallowances (3,475,020) (3,815,107)Computer expenses (5,415,818) (4,587,717)Consultancy fees (2,510,945) (3,532,968)Depreciationofproperty,plantandequipment(Note9) (5,882,122) (8,732,857)Doubtfuldebtsreversal/(charge) 47,017 (1,518,841)Insurance (2,431,383) (2,324,925)Legal fees (310,119) (235,393)Operatingleaserentals (11,697,920) (10,022,501)ProjectexpensesLeatherPark (1,997,793) (3,312,239)ProjectexpensesRapidIncubator (593,354) (1,302,357)Remunerationpaidtoseniormanagement (7,964,351) (5,298,066)Repairsandmaintenance (3,326,566) (2,231,623)Security expenses (2,619,784) (2,199,485)Seminars, retreat and conference costs (987,550) (2,174,930)Staffcosts(Note5) (89,936,735) (81,511,829)Stafftraining (1,351,288) (2,508,503)Staffwelfare (1,594,396) (1,787,803)Stationeryandprinting (1,686,003) (1,981,809)Telephone,mobileandfax (5,196,747) (5,572,979)Training and mentoring costs (3,453,432) (2,423,108)Otherexpenses (8,953,438) (9,381,111)

(171,555,611) (156,993,175)

5 Staff costs

Salaries and wages 78,551,871 71,861,385Pensioncosts 6,547,981 5,978,782Staffgratuity 4,836,883 3,671,662

89,936,735 81,511,829

Averagenumberofemployees 322 305

NOTeS TO THe FINANCIAL STATeMeNTS for the year ended 31 March 2016

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6 Finance income

2016 2015 P P

Foreignexchangegain 23,004 13,320Interestreceivedonbankdeposits 1,479,889 1,793,507Interestaccruedonbankdeposits 44,393 29,308

1,547,286 1,836,135

7 Income taxTheAuthorityisexemptedfromincometaxintermsofthesecondschedule(chapter52.01)oftheIncomeTaxActof1995asamended.

8 Financial instruments

8.1 Financial instruments by categoryTheaccountingpoliciesforfinancialinstrumentshavebeenappliedtothelineitemsbelow:

Loansreceivables

31 March 2016 PAssets as per the statement of financial positionTradeandotherreceivablesexcludingprepayments 2,824,578 Cashatbank 33,629,988

36,454,566

Other financial liabilities

31 March 2016 PLiabilities as per the statement of financial positionTradeandotheraccountspayable 49,871,192 Borrowings 852,335

50,723,527

Loans and receivables

31 March 2015 PAssets as per the statement of financial positionTradeandotherreceivablesexcludingprepayments 2,452,721 Cashatbank 32,914,470

35,367,191

Other financial liabilities

31 March 2015 PLiabilities as per the statement of financial position - RestatedTradeandotheraccountspayable 18,910,702 Borrowings 2,760,925

21,671,627

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

8.2 Credit quality of financial assets Thecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetohistoricalinformation

aboutcounterpartydefaultrates:

2016 2015 P P

Trade and other receivables excluding prepayments Rating Tradereceivables Not rated 111,594 151,357Deposits Not rated 659,550 649,550 Other receivables Not rated 2,053,434 1,651,814

2,824,578 2,452,721

Cash at bank RatingStandardCharteredBankBotswanaLimited Not rated 1,487,292 737,074 FirstNationalBankofBotswanaLimited Not rated 6,323,522 25,951,184 BarclaysBankofBotswanaLimited Not rated 499,563 468,715 African Alliance Limited Not rated 1,576 1,505 BancABC of Botswana Limited Not rated 25,318,035 5,755,992

33,629,988 32,914,470

TherearenocreditratingsavailableforfinancialinstitutionsinBotswana.Theabovebanksarelistedcompaniesandhavereportedsoundfinancialresultsandcontinuedcompliancewithminimumcapitaladequacyrequirementsetbytheregulator.Noneofthefinancialassetsthatarefullyperforminghasbeenrenegotiatedduringtheyear.

8.3 The Authority’s exposure to foreign currency risk is analysed below AllamountsinBotswanaPula

As at 31 March 2016 Botswana Pula US Dollar Total

Trade and other receivables excluding prepayments 2,824,578 - 2,824,578 Cashandcashequivalents 33,629,865 123 33,629,988

36,454,443 123 36,454,566

Borrowings 852,335 852,335 Trade and other accounts payable 49,871,192 - 49,871,192

50,723,527 - 50,723,527

As at 31 March 2015 Botswana Pula US Dollar Total

Trade and other receivables excluding prepayments 2,452,721 - 2,452,721 Cash and cash equivalents 32,829,571 84,899 32,914,470

35,282,292 84,899 35,367,191

Borrowings 2,760,925 - 2,760,925 Tradeandotheraccountspayable 18,910,702 - 18,910,702

21,671,627 - 21,671,627

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9 Property, plant and equipment

Capital work Land and Leasehold Plant and in progress buildings improvements equipment

P P P P

Year ended 31 March 2015Netbookamountatbeginningofyear - 69,979,813 1,057,837 497,527 Additions 71,792 57 - 88,394 Depreciation - (1,811,213) (911,520) (434,726)Disposals - - - - Depreciationondisposal - - - - Netbookamountatendofyear 71,792 68,168,657 146,317 151,195

As at 31 March 2015Cost 71,792 77,324,796 15,172,711 3,481,438 Accumulateddepreciation - (9,156,139) (15,026,394) (3,330,243)Netbookamount 71,792 68,168,657 146,317 151,195

Year ended 31 March 2016

Netbookamountatbeginningofyear 71,792 68,168,657 146,317 151,195 Additions 7,333,255 - 22,401 108,729 Depreciation - (1,936,215) (126,579) (123,174)Disposals - - - - Depreciationondisposal - - - - Netbookamountatendofyear 7,405,047 66,232,442 42,139 136,750

As at 31 March 2016Cost 7,405,047 77,324,796 15,195,111 3,590,166 Accumulateddepreciation - (11,092,354) (15,152,972) (3,453,416)Netbookamount 7,405,047 66,232,442 42,139 136,750

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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Furniture Office Motor Computer Library and fittings equipment vehicles equipment books Total

P P P P P P

2,926,852 631,062 1,484,150 3,906,789 36,234 80,520,264 367,979 420,595 3,184,536 2,795,296 20,842 6,949,491

(661,349) (347,810) (829,450) (3,717,939) (18,850) (8,732,857) - - (419,016) - - (419,016) - - 419,016 - - 419,016

2,633,482 703,847 3,839,236 2,984,146 38,226 78,736,898

6,877,734 6,250,033 23,517,472 21,421,513 346,924 154,464,413 (4,244,252) (5,546,186) (19,678,236) (18,437,367) (308,698) (75,727,515)

2,633,482 703,847 3,839,236 2,984,146 38,226 78,736,898

2,633,482 703,847 3,839,236 2,984,146 38,226 78,736,898 99,989 76,172 861,357 1,494,059 7,483 10,003,445

(696,496) (308,679) (1,383,857) (1,288,509) (18,613) (5,882,122) - - (2,691,611) - - (2,691,611) - - 2,691,611 - - 2,691,611

2,036,975 471,340 3,316,736 3,189,696 27,096 82,858,221

6,992,933 6,326,205 21,889,442 22,915,571 354,407 161,993,678 (4,955,958) (5,854,865) (18,572,706) (19,725,875) (327,311) (79,135,457)

2,036,975 471,340 3,316,736 3,189,696 27,096 82,858,221

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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10 Intangible assets

P

Year ended 31 March 2016Netbookamountatbeginningofyear - Additions 19,693,989 Amortisation (4,923,497)Netbookamountatendofyear 14,770,492

As at 31 March 2016Cost 33,505,691 Accumulateddepreciation (18,735,199)Netbookamount 14,770,492

Year ended 31 March 2015

Netbookamountatbeginningofyear - Amortisation - Netbookamountatendofyear -

As at 31 March 2015 Cost 13,811,702 Accumulateddepreciation (13,811,702)Netbookamount -

Intangibleassetscompriseofsoftwareandlicensecostsrelatingtocomputerisedaccountingpackagesandsystems.

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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11 Receivables and prepayments

2016 2015P P

Receivables 2,191,706 2,441,406 Provisionforimpairment (2,080,112) (2,290,049)

111,594 151,357 Deposits and prepayments 4,113,873 5,211,675 Otherreceivables 2,053,434 1,651,814

6,278,901 7,014,846

Receivablesthatarelessthansixmonthspastduearenotconsideredasimpaired.Asof31March2016,receivablesofNil(2015:P128,791)werepastduebutnotimpaired.Theserelatetoanumberofindependentcustomersforwhomthereisnohistoryofdefault.Theageanalysisofreceivablesisasfollows:

2016 2015P P

Upto30days 90,489 10,897 Between 31 and 60 days 21,105 11,669 Over 60 days - 128,791

111,594 151,357

ThecarryingamountsofreceivablesandprepaymentsaredenominatedinBotswanaPula.

Asof31March2016,tradereceivablesofP2,080,112(2015:P2,290,049)wereimpairedandprovidedforinfullastherecoveryofthesedebtorswasnotexpected.Theagingofthesereceivablesareasfollows:

2016 2015P P

Over 120 days 2,080,112 2,290,049

Movementoftheprovisionforimpairmentofreceivablesareasfollows:

2016 2015P P

Balanceattheendofyear 2,290,049 1,424,481 Writeoffduringtheyear (162,920) (653,273)Currentyearprovision(reversal)/charge (47,017) 1,518,841 Balanceattheendofyear 2,080,112 2,290,049

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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11 Receivables and prepayments (continued) Thecreationandreleaseofprovisionforimpairedreceivableshavebeenincludedinadministrativeexpensesinthestatementof

comprehensiveincome. Theotherclasseswithintradeandotherreceivablesdonotcontainimpairedassets.

Themaximumexposuretocreditriskatthereportingdateisthefairvalueofeachclassofreceivablementionedabove.The

Authoritydoesnotholdanycollateralassecurity.TheMembersoftheBoardconsiderthefairvaluesoftradeandotheraccountreceivablestoapproximatetheircarryingvaluesduetotheirshorttermnature.

12 Cash and cash equivalents

2016 2015P P

Shorttermbankdeposits-callaccountbalances 32,974,168 32,160,319 Currentaccountbalances 655,820 754,151 Cashinhand 15,682 14,807

33,645,670 32,929,277

Forthepurposeofthestatementofcashflowstheyearendcashandcashequivalentscomprisesofthefollowing:

2016 2015P P

Cashinhand 15,682 14,807 Bankdeposits 33,629,988 32,914,470 BankOverdraft(Note15) (852,335) (2,760,925)

32,793,335 30,168,352

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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13 Capital grants

2016 2015P P

Balanceatbeginningofyear 94,697,775 81,706,250 Additions 5,999,998 24,000,057 Amortisationfortheyear (6,565,746) (11,008,532)Balance at end of year 94,132,027 94,697,775

CapitalgrantsrepresentGovernmentgrantsgiventotheAuthoritytofinancethepurchaseofproperty,plantandequipment.Capitalgrantsaretransferredtotheincomestatementinamannerthatrepresentstheeconomicbenefitsgeneratedthroughtheusageoftherelatedassets.Asatthereportingdate,therewerenounfulfilledconditionsattachedtothecapitalgrants.

14 Trade and other accounts payable

2016 2015P P

Tradeaccountspayable 30,132,467 4,181,413 Accruals 2,754,628 364,206 Staffprovisions(Note14.1) 16,984,097 14,365,083

49,871,192 18,910,702 TheMembersoftheBoardconsiderthecarryingamountoftradeandotheraccountspayabletoapproximatetheircarryingvalues

duetotheirshorttermnature.

14.1 Staff provisions

Gratuity Leave pay TotalP P P

Balanceatbeginningofyear 6,239,949 8,125,133 14,365,082 Provisionfortheyear 4,817,640 2,300,431 7,118,071 Paymentsmadeduringtheyear (3,581,174) (917,882) (4,499,056)Balance at end of year 7,476,415 9,507,682 16,984,097

Gratuity Staffmemberswhoareoncontractsreceiveterminalgratuitiesinaccordancewiththeircontractsofemployment.Anaccrual is

madefortheestimatedliabilitytowardssuchemployeesuptothereportingdate.

Leave pay Paidabsencesareaccountedforonanaccrualbasisovertheperiodinwhichemployeeshaveprovidedservices.

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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15 Borrowings

2016 2015P P

CurrentBankoverdraft 852,335 2,760,925

TheAuthoritydoesnothaveabankoverdraftfacility.Theabovebalancerepresentsabookoverdrawnposition. 16 Events after the reporting date

TheAuthority’sinformationtechnologysupplierissuedtrueupbillingsontheAuthority’stechnologyandapplicationsystemson20October2016ofP24,487,260.Thisliabilityisdeemedtobeanadjustingeventandaccordinlgly,theresultantintangibleassetandliabilityhavebeenrecognisedinthefinancialstatements.Therewerenoothereventsthatoccurredafterthereportingdaterequiringadjustingandfordisclosureinthefinancialstatements.

17 Commitments and contingencies Operating lease commitments - where the authority is the lessee

a) Thefutureaggregateminimumleasepaymentsundernon-cancellableoperatingleasesareasfollows:

2016 2015P P

Notlaterthan1Year 6,917,605 7,950,074 Laterthan1yearandnolaterthan5years 17,204,680 1,476,735

24,122,285 9,426,809

b) Capital commitments – Projects

Therehasbeennocapitalexpenditurecontractedforatthereportingdatebutnotyetincurredforthefinancialyears31March2016and31March2015.

c) Contingent liabilities Court cases

ThereislitigationagainsttheAuthoritythroughwhichP2.2millionissoughtbytheclaimants.TheAuthority’sMembersoftheBoardconsiderthesuccessofthe litigationagainsttheAuthorityasunlikely.Aspertheexternal legaladvisor, themaximumpossibleexposureisP0.6millionandaccordinglyadisclosureofsuchhasbeenmadeintheannualfinancialstatements.Thecaseshouldberesolvedwithinthenextfewmonths.

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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18 Related party transactions

2016 2015P P

Transactions with senior management

Remunerationpaidtoseniormanagement 7,964,351 5,298,066

Transactions with the Board

SittingallowancespaidtoBoardMembers 67,180 245,024

19 Going Concern Duringtheyear,theAuthorityincurredadeficitofP9,613,889(2015:surplusofP2,381,519)anditsliabilitiesexceeditsassetsby

P7,302,270(2015:netassetsP2,311,619). Theseconditions indicateafundamentaluncertaintythatcastdoubtaboutthegoingconcernstatusoftheAuthority.Thegoing

concernbasishasbeenadoptedinthepreparationofthesefinancialstatementsastheshareholder-GovernmentofBotswanahaspledgedthenecessarysupporttotheAuthorityuntilitreturnstoprofitabilityanditsassetsexceeditsliabilities.Todemonstratethesupport,sinceyearendGovernmenthas;

i)madearecurrentgrantcontributionofP70,840,575;and ii)announcedsubventioncommitmentforthenext3yearsatP141681150peryear.

NOTeS TO THe FINANCIAL STATeMeNTS (continued) for the year ended 31 March 2016

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DeTAILeD INCOMe STATeMeNT for the year ended 31 March 2016

AnnExTURE 1

2016 2015P P

Revenue grants 147,708,000 144,200,000

Amortisationofcapitalgrants 6,565,746 11,008,532

Otheroperatingincome 6,120,690 2,330,027 Recurrent expenditureAdvertisement (719,090) (500,138)Armotisationofintangibleassets (4,923,497) - Annual License fee (4,793,271) - Auditors'remuneration-currentyear (321,916) (292,000)Auditors’remuneration-prioryear (112,000) -Bankcharges (158,194) (157,055)Boardsittingallowance (67,180) (245,024)Boardmeetingexpenses (62,947) (390,473)Businesstravel,accommodationandallowances (3,475,020) (3,815,107) Computer expenses (5,415,818) (4,587,717) Consultancy fees (2,510,945) (3,532,968) Courier and postage (247,094) (258,584)Depreciationofproperty,plantandequipment (5,882,122) (8,732,857)Doubtfuldebtsreversal/(charge) 47,017 (1,518,841)Donations (103,568) (368,646)GlenValleyconsumables (1,877,578) (1,148,164) Insurance (2,431,383) (2,324,925) Legal fees (310,119) (235,393)Motorvehicleexpenses (1,452,847) (1,862,259)Officeexpenses (1,275,234) (1,398,784)Operatingleaserentals (11,697,920) (10,022,501)ProjectexpensesLeatherPark (1,997,793) (3,312,239)ProjectexpensesRapidIncubator (593,354) (1,302,357)Promotionandpublicity (1,885,791) (1,767,237)Remunerationpaidtoseniormanagement (7,964,351) (5,298,066)Repairsandmaintenance (3,326,566) (2,231,623)Researchcosts (228,426) (550,521) Security expenses (2,619,784) (2,199,485) Seminars, retreat and conference costs (987,550) (2,174,930) SMME conference and fair - current year (412,219) (252,831)Staffcosts (89,936,735) (81,511,829)Stafftrainingandrecruitment (1,351,288) (2,508,503)Staffwelfare (1,594,396) (1,787,803)Stakeholdermanagement (351,531) (465,580)Stationeryandprinting (1,686,003) (1,981,809)Subscriptions (178,919) (260,839)Telephone,mobileandfax (5,196,747) (5,572,979) Training and mentoring costs (3,453,432) (2,423,108)

(171,555,611) (156,993,175)Operating deficit for the year (11,161,175) 545,384

“Thisdetailedincomestatementdoesnotformpartoftheauditedfinancialstatementscoveredbytheauditopiniononpages46“.

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AnnExTURE II

1 Other income

2016 2015

P P

Profitondisposalofproperty,plantandequipment 678,981 117,750 Rentalincome 685,973 778,096 Sundry income 1,310,598 346,299 Telephonerecoveries 572,900 405,192 Tender fees 25,050 30,200 Training and resource centre income 2,847,188 652,490

6,120,690 2,330,027

“Thisdetailedincomestatementdoesnotformpartoftheauditedfinancialstatementscoveredbytheauditopiniononpages46“.

NOTeS TO THe DeTAILeD INCOMe STATeMeNTS for the year ended 31 March 2016

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CONTENTS PagE

GraduatEd EntErprisEs

LifestyLe architects 75

isaBeL GUest sUites & tOUrs 76

DestiNy car reNtaLs 77

LEa CLiEnts

aDONay iNVestMeNts (Pty) LtD 79

shaKiNah iNVestMeNts 80

sOUNDs iNVestMeNts (Pty) LtD 81

the cONcePt KiNG 82

earth VitaMiNs 83

BiG saM hUBBer 84

KaiDONGO BreeDers 85

NKaNGa hOteL 86

taBa’s frUit & VeG 87

sLeeK fOODs 88

Lea cOrPOrate iNfOrMatiON 89

L i fe st y l e A rc h i te c t s p ro v i d e s professional architectural, engineering and draughting services including Conceptual Design, Detail Design Documentation, Project Management and Supervision. The business also assists clients to sought approval of the proposed designs from the relevant Authorities such as Councils.

Relationship with LEA

Lifestyle Architects registered with LEA in 2010 and has since received the following interventions: Business plan development, Human resources policy development, Product and process improvement, Quality Management System (ISO 9001:2008 training, implementation, documentation and lead audit). In addition, the business received training on Sales and Marketing, Trade Show Readiness and Record Keeping. The promoter attended several workshops on Quality

Awareness, as well as others organized by other institutions such as Botswana Unified Revenue Services (BURS), Companies and Intellectual Property Authority (CIPA) and the Economic Diversification Drive (EDD) Unit.

LEA also facilitated for the client to participate at various platforms that accorded exposure and business linkages to markets. These include setting up a stall at the 2016 SMME Pitso, the 2013 Women exposition and the 2015 Global Expo. Lifestyle Architects was also assisted with branding and the development of promotional material, to position the business in the market place. These tailor-made interventions coupled with coaching and monitoring enabled the business to grow and access markets such as Morupule Colliery Mine among others.

BAckgRoundLifestyle architects is a cit izen

owned company under the

directorship of Mr and Mrs Kgamane.

the company was established and

started operations in august 2010

in Palapye. the business has a staff

complement of six, including the two

Directors, and boasts of its qualified

architects with a vast knowledge of

the industry they are operating in.

LIFESTYLE architects

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LEA has equipped me with skill and knowledge that will sustain me and our company for over 100 years.

The guest house offers accommodation and outside catering services for conferences, weddings, parties and corporate functions in and around Palapye. The facility boasts of country style thatched rooms that are air conditioned, en-suite bathrooms, television sets with satellite channels and WI-FI connection. Isabel offers lavish accommodation in nine (9) rooms comprising of four executive and five standard rooms, a kitchen and laundry services.

Relationship with LEA

Isabel Guest Suites and Tours registered with LEA in 2010, and has since received a series of interventions including training on Sales and Marketing, Trade Show Readiness, Hospitality and Records Keeping. The Authority also offered coaching on Customer Service, Pre-grading assessments, Product and Process Improvement, all necessary for a business in the hospitality industry. Isabel Guest Suites and Tours was also assisted to brand, develop a website and promotional material that the company uses to market its services. In furtherance of the business’ presence in the market, LEA facilitated for the client to attend various trade exhibitions over the years, including the Indaba Travel and Tourism fair in 2015. All these interventions have assisted the facility to obtain a 2 star grading from the Botswana Tourism Organization (BTO).

BAckgRound isabel Guest suites and tours is a

citizen owned business that started

operations in November 2009.

Owned by Ms. sephiwe Phillimon,

the business currently employs 5 full

time employees.

ISaBEL gUEST SUITES aND tOUrs

Taking a chance with LEA helped our business to take a chance, to do it now and not look back. LEA is the support you need!

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BAckgRound Mr. and Mrs. sebina, owners

of Destiny car rentals, began

operations in May 2008. the business

offers car rental services, and have

a wide range of vehicles to cater

for varied customer needs. Destiny

car rentals currently employs eight

people. the business now prides itself

with branches at various places, two

offices in Gaborone, one in Maun as

well as two in francistown.

DESTINY CaR reNtaLs

Relationship with LEA

Destiny Car Rentals registered with LEA in 2007. Interventions that LEA has offered since then include various trainings on business plan development, sales and marketing as well as finance for non-finance Managers amongst others. The company also received marketing interventions such as showcasing their services at several trade exhibitions and fairs, coaching as well as mentoring. Further interventions undertaken by the business include among others, training on lead auditor, process certification, quality and productivity awareness, taxation workshop, as well as brand registration- trade mark (Intellectual Property) registration. Destiny Car Rentals renders services to private companies, Parastatals, Government Departments as well as individual members of the public.

Thank you LEA for inspiring the Destiny team to where it is today, your commitment to excellence continues to inspire us.

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LEa CLIENTS PrOfiLes

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Relationship with LEA

Soul Beat registered with LEA in 2012. Interventions that have been offered to the client include; Trade Show Readiness training, Technology Audit, Product and Process Improvement among others. Through LEA’s facilitation, the client has attended trade exhibitions such as the Consumer Fair, the 2012 SMME Conference and Fair, 2013 SAITEX, and the 2014 Property Expo. Furthermore, LEA has assisted the client to develop a website and promotional material, which are pertinent in marketing the company products and services. Soul Beat’s main customers are the general public who procure for their households, Botswana Defence Force, Schools and Air Botswana.

BAckgRoundadonay investments (Pty) Ltd, trading

as soul Beat, is a citizen owned

company under the directorship of

Mr. and Mrs. Mbulawa. soul Beat

has a staff complement of six, and

specializes in custom made furniture,

upholstery and auto trimming

services. the business has been in

operation since 2012 and it is located

in Broadhurst industrial, Gaborone.

aDONaY iNVestMeNts

LEA has assisted us to develop a website and promotional material, which are pertinent in marketing our company products and services.

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Relationship with LEA

Shakinah Investments registered with LEA in 2007, and have since received various interventions which are aimed at positioning the business in the market place. LEA has offered the client training on Quality and Productivity Awareness, business planning, ISO 9001: 2008 QMS - Process Certification, Trade Show Readiness and Entrepreneurship Development Training. The cl ient has also benefited from LEA through capacity building workshops such as Entrepreneurship Awareness Workshop (EAW) and Quality and Productivity in the work place.

The company has successfully certified with BOBS on the ISO 9001: 2008 standard, which shall build consumer/buyer confidence on the quality of the products produced and further improve the company’s competitive edge. Shakinah Investments continues to receive coaching and monitoring services from LEA. The business customer base include Botswana Meat Commission (BMC), CAN Manufacturers, Kgalagadi Breweries Limited, Bolux Milling Company, Engen Marketing Botswana and Lobatse Clay Works.

BAckgRoundshakinah investments (Pty) Ltd is

a 100% citizen owned company

directed by Mr and Mrs Ntopo.

Based in Lobatse, the business

manufactures wooden pallets that

are used in a wide range of industries

as platforms on which goods are

stacked, stored and moved. the

pallets are tailor made according

to the customer’s specification.

shakinah investments started

operating in 2008, and currently has

12 employees.

SHaKINaH iNVestMeNts

LEA was very instrumental in helping us remain competitive in our line of business to attain BOBS ISO 9001:2008 certification in 2015.

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Relationship with LEA

Sounds $ Investment registered with LEA in 2015. The business promoter has since attended training on Occupational Health and Safety and Trade Show readiness. He was also taken through awareness workshops on Branding, Packaging and Labelling, as well as Intellectual Property Rights and Patenting. He was also assisted to acquire a loan for his working capital needs, and benefited from coaching and monitoring services offered. Sounds $ Investment (Pty) Ltd currently supplies Hardware stores such as Haskins, Builder’s Mart, Sana, Mochudi Builder’s World and the general public.

BAckgRound sound $ investment (Pty) Ltd is

a citizen owned enterprise that

m a n u f a c t u r e s s t e e l p r o d u c t s

such as window and door frames,

gates, poles, stays and playground

equipment. it is owned by Mr

heckson Ndwakule, and started

operating in Mochudi in 2014. the

business currently employs five

people.

SOUND $ iNVestMeNt

LEA e nthusitse go mpatlela bareki le go re fa dikgakololo mo go tsa madi.

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Relationship with LEA

Since registering with LEA in 2008, The Concept King has been offered training on Financial Management, Tradeshow readiness and Entrepreneurship Development Training. The client also receives Business coaching and monitoring services from LEA, all of which have enhanced business growth and enabled the client to open two more offices, one at Palapye and the other in Johannesburg. The company offers creative resource pool such as graphic design, signage and illustrative communication services to Debswana, Botswana Power Corporation, Ministry of Health and Majwe Mining.

BAckgRoundthe concept King (Pty) Ltd is a wholly

citizen owned company promoted

by Mr Onkemetse Dominic Ohimile.

With a staff complement of 11,

the business offers information

technology solutions and event

management. it specializes in

integrated communication solutions

and advertising services. established

in 2008 in Gaborone the concept

King assists establishments to

revitalize their brands and build

reputation.

THE CONCEPT KiNG

Success is 100% connected to action, partner with LEA and watch your business succeed.

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Relationship with LEA

Earth vitamins registered with LEA in 2015 and has benefited from market access assistance through linkages with markets such as Game stores, Sefalana group, Phakalane Golf Estate, Shell group, Engen group, Sgotti restaurant, Grand Palm and others. He has also participated at various trade exhibitions such as Global Expo 2015 and the National Agric Show, where he interacted and networked with potential buyers. In addition to the incubation programme services such as subsidized operational space, business and technology advice, Earth Vitamins has also received interventions on branding, packaging and labelling, intellectual property awareness, export awareness and facilitation of access to funding amongst others.

BAckgRound

established in 2013, earth Vitamins is a meat processing company with special focus on processing tasty boerwors, patties, biltong and meatballs. the business is directed by Mr and Mrs thabo Molefhe, and operates from the Pilane Multi-Purpose incubator. the project currently employs nine full-time employees.

EaRTH VitaMiNs

We do not just sell Biltong we sell the Experience, thanks to LEA for the interventions they provide the company with.

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Relationship with LEA

Upon registering with LEA in 2014, Big Sam Hubber was assisted to acquire an open space along the river bank to construct an office. The company has benefited from advanced interventions such as website development, branding, packaging and labelling. The company received training on sales and marketing, Tradeshow readiness, Entrepreneurship Development and was also mentored on QuickBooks. LEA facilitated for the client to attend the Indaba Travel and Tourism Fair in 2015. All these interventions enhanced business growth and led to Big Sam Hubber acquiring an additional mobile safari vehicle, three combies, camping equipment, and three boats. Big Sam Hubber’s clients include Mowana Game Lodge, Chobezi Tour Operators (Cross Boarder Operators), Camp Kazuma and Kalahari Tours.

BAckgRound Big sam hubber is owned by Mr.

samuel tshekonyane, and has

operated in Kasane since 2014.

Operating in the mobile safari

industry, the company offers

mobile camping, local and cross

border transfers, game drives, boat

cruise, fishing excursions and river

crossing. Big sam hubber has a staff

complement of five.

BIg SaM hUBBer

I am really proud of the support and interventions rendered to Big Sam Hubber by LEA.

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Relationship with LEA

Mr. Kanguaiko has been a client of LEA since 2007. Since then, the business has benefited from various interventions including training on Business planning and Entrepreneurship Development. The client has also participated at exhibitions such as Ghanzi Agricultural Show and market days, and continues to receive coaching and monitoring services from LEA.

In 2012, the Gantsi Land Board allocated the business a 1km x 1km Small Agricultural Holding through the intervention of LEA, and was assisted to get funding for the development of the newly allocated farm and buying of additional stock which included 150 does, 6 bucks, 100 Ewes and 4 Rams to increase the breeding stock. The enterprise has also been assisted to procure promotional material that are used for marketing purposes. Kaidongo Breeders main customers are individual members of the public at auction sales and exhibitions.

BAckgRound Kaidongo Breeders (Pty) Ltd is situated at Okarue cattle post in the charleshill sub-District, 10 kilometres south of trans-Kalahari. the project is a sole proprietor business managed by Mr france Kanguaiko, and specializes in the production of stud breed of boer goats and white doper sheep. the business employs four people including the owner.

KaIDONgO BreeDers

LEA has helped me to get a startup loan for my business. It has helped me to achieve a lot. Ke se ke leng sone ka ke thusitswe ke LEA.

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Relationship with LEA

Nkanga Hotel registered with LEA in 2014. Since becoming a LEA client, the hotel benefited from a number of interventions that include Entrepreneurship Development Training, Customer Care, Company policy development, Branding, Packaging and Labelling, website development and QuickBooks Accounting Package mentorship. The client also receives mentoring and coaching services which are both business and technically related. The hotel through LEA’s advice is in the process of expanding from the current nine rooms to twenty four rooms, which shall incorporate a swimming pool, a restaurant, conference facilities and offices. The main market for Nkanga Hotel are Government institutions and individual members of the public.

BAckgRound Nkanga hotel was founded in

2010 by Mr and Mrs Nkonkwena

and their two children. the hotel is

based in Kazungula and provides

accommodation, game drives,

boat cruise, camping and catering

services. it has a staff complement of

12 employees.

NKaNga hOteL

LEA has done a good job here, it’s presence and work are acknowledged, and they helped us reach our targets and goals, keep up the good work!

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Relationship with LEA

The client registered with LEA in 2007, and was assisted to develop a business plan that he used to access funding. As a LEA client, the promoter attended various training on Sales and Marketing, Branding, Packaging and Labelling, Budgeting, Costing and Pricing, as well as Finance for Non-Finance Managers. LEA also facilitated the client’s uptake of Botswana Bureau of Standards trainings such as Implementation and Documentation of a Quality Management System according to BOS ISO 9001:2008 standard. Mr. Taba was also taken for a benchmarking trip at Glen Valley Incubator to appreciate modern farming technologies that enhance horticulture production. Taba’s Fruits and Veg supplies fresh produce to distributors such as Mr. Veg, as well as retail stores including Spar, Shoprite and hawkers in Francistown.

BAckgRoundtaba’s fruits and Veg is a horticulture

project established in 2007, and

located in Ditladi, east of tonota

village. it is owned by Mr Milikani

taba, and currently employs 11

people. the business is located on

a 4.5ha open field where various

crops including cabbage, tomatoes,

butternuts, rape and beetroot are

produced.

TaBa’S FRUITS aND VeG

LEA has opened my eyes to view my business from the entrepreneurial perspective.

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Relationship with LEA

Sleek Foods registered with LEA in 2013 and has since benefited from numerous interventions availed by the Authority. These include training on Taxation and facilitation of access to finance. The business continues to benefit from the LEA Incubation programme services such as; provision of subsidized operational space, subsidized utilities (water and electricity), business and technology interventions among others. The company has through the LEA facilitation, participated and exhibited at several market days, the 2015 Consumer fair and the 2015 Global Expo.

Furthermore, the client attended the 2015 Southern African International Trade Exhibition (SAITEX) in South Africa and the 2015 FACIM Trade Fair in Maputo, Mozambique. These regional trade fairs have given Sleek Foods the opportunity to showcase products to the international market, which was a resounding success. Sleek Foods currently supplies major Spar supermarkets countrywide, as well as and Choppies Hyper Stores.

BAckgRound sleek foods (Pty) Ltd was established in 2010 by Mrs. Nkata seleka, who is

the sole shareholder and Director of the company. currently operating from

the Lea Pilane Multi-Purpose incubator, the company produces a locally

self-developed condiment, an assortment of relish, in different flavours. the

product is made of locally produced vegetables. sleek foods currently employs

three full-time and 12 part-time employees.

SLEEK fOODs

LEA is indeed every entrepreneur’s dream. It has provided the perfect platform to realize my business aspirations.

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kASAnEHunters Africa ComplexPlot 2208Unit 14Private Bag K3KasaneBotswanaTel: (267) 6250432Fax: (267) 6250448

MASungAAlong main road to Masunga Primary HospitalNext to CTO Filling StationPrivate Bag 006MasungaBotswanaTel: (267) 2489803Fax: (267) 2489807

MAunNew Mall near AirportPlot 105Private Bag 64 MaunBotswanaTel: (267) 6863146Fax: (267) 6863166

MocHudIBehind Engen Filling StationLot 982Private Bag 0069Mochudi BotswanaTel: (267) 5777668Fax: (267) 5777688

MoLEPoLoLEPlot 313Private Bag MolepololeBotswanaTel: (267) 5921006Fax: (267) 5921011

RAMoTSWAGoora Dimpe WardPlot 2142Private Bag 0012Ramotswa BotswanaTel: (267) 5391075Fax: (267) 5391078

SELIBE-PHIkWE North Road opposite Bosele HotelPlot 6585 Private Bag 0069Selebi PhikweBotswanaTel: (267) 2613160Fax: (267) 2603165/6

SERoWECorner Orapa RoadPlot 2200Private Bag 40 SeroweBotswanaTel: (267) 4632071Fax: (267) 4632074

TSABongOld IFS BuildingBehind New Magistrate CourtPrivate Bag 0016TsabongBotswanaTel: (267) 6540196Fax: (267) 6540198

IncuBAToRS

FRAncISToWn InduSTRIAL BuSInESS IncuBAToRLight Industrial AreaPlot 1607Private Bag F22FrancistownBotswanaTel: (267) 2418036Fax: (267) 2418027

gABoRonE LEATHER InduSTRIES IncuBAToROld BEDU Premises, Macheng WayPlot 4799/4800Private Bag 0301GaboroneBotswanaTel: (267) 3105330Fax: (267) 3105334

gLEn VALLEY HoRTIcuLTuRE IncuBAToRPlot 63069Extension 67Private Bag X035, VillageGaboroneBotswanaTel: (267) 3186309Fax: (267) 3186437

PILAnE MuLTI PuRPoSE IncuBAToRPilane Old Industrial SitePrivate Bag 18MochudiBotswanaTel: (267) 5729146/ 5729177Fax: (267) 5729178

EXTERnAL AudIToRSPriceWaterhouse CoopersPlot 50371, Fairgrounds Office ParkP.O. Box 294GaboroneBotswanaTel: 3952011Fax: 3973901

HEAd oFFIcE2nd Floor Block A Lot 50676Fairgrounds Office ParkPrivate Bag 191GaboroneBotswanaTel: (267) 3644000Fax: (267) 3644001Toll-free No. 0800 155 155Email: botsalea@lea.co.bw

BRAncHES

FRAncISToWnDaukome HousePlot 16138Central Business DistrictPrivate Bag F358FrancistownBotswanaTel: (267) 2413847Fax: (267) 2416242

gABoRonEHaile Selassie Road Lot 17949Private Bag 0321 GaboroneBotswanaTel: (267) 3957856Fax: (267) 3957858

gHAnZIWhite CityPlot 682Private Bag 001GhanziBotswanaTel: (267) 6597161Fax: (267) 6597174

kAnYETribal Lot 1274Mahube WardPrivate Bag 48KanyeBotswanaTel: (267) 5403093Fax: (267) 5403094

LEa Corporate information

Notes

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Toll Free Number: 0800 155 155

Website: www.lea.co.bw

Email: botsalea@lea.co.bw