BUSINESS Financial Solutions has launched an incubation studio aimed at helping high potential start-ups and SMEs through customised operational and professional support.
The incubation studio was launched in Windhoek yesterday, together with the Kula Impact Fund.
The studio will incubate four start-ups who emerged from the 18 business ideas which were submitted through the BFS and GreenTec Capital Partners in September this year.
The partnership is meant to support start-ups and SMEs in areas of capacity-building, investment readiness, and fundraising to stimulate entrepreneurship in Namibia.
The incubation studio targets financially sustainable ideas, up-scalable value-adding projects and disruptive greenfields that need support to get off the ground.
The targeted projects are on transport solutions, using solar energy, smart technology to help reduce power consumption, cosmetic-pharmaceuticals for sensitive skin, and chlorine production using solar energy.
Speaking at the launch, the managing director of Business Financial Solutions (BFS), Kaunapaua Ndilula, said the current challenges faced by start-ups and SMEs in Namibia require incubation and funding solutions.
BFS thus aims to contribute to the transformation of the structure and composition of the economy.
Ndilula added: “It is my sincere hope that we will continue to tap into the power of collaboration. Because we collaborate, we not only bring out everyone’s best, but we also turn ideas into collective intelligence, which allows us to achieve better results.”
BFS has also launched a N$150 million impact fund to help start-ups and SMEs.
Chief investment officer for equity investments Christina von Doderer explained that they are planning to raise N$150 million, with at least a third (N$50m) to be raised in the first stage.
“We have firm commitments – in writing – for N$25 million, and various organisations are reviewing our investment proposals for them to contribute as well and help us get to that first milestone target of N$50 million – the more investment we can find, the better, of course,” she stated.
Von Doderer said it is regrettable that a lot of great ideas and innovations are non-starters and get lost along the way, which signals an urgent need for support for SMEs and private sector growth in the country.
BFS will assist start-ups with advice, operational support, office space, and connect them with the right people from their vast network during this difficult stage in order to get them investment-ready through the BFS start-up studio.
Kula Capital can then come in to fund, and get businesses operational.
With regards to the risk involved, she explained: “We are going to do proper due diligence when it comes to investing in each and every business, and will obviously only select the ones we consider the best and most promising”.
In addition, Von Doderer said they always consult their network, including market experts, when it comes to the feasibility of an idea/product, and they promote it properly in order to avoid failure and default.
She explained that funds will be invested in start-ups that will ensure a tangible social and environmental impact, while also generating acceptable long-term returns.
Moreover, Kula Capital will act as a feeder fund for banks, other funds, as well as the public market by identifying possibilities for turning portfolio companies into local, regional and international players.
Erica Nell, Sanlam Investment Management’s Namibian representative at the event, said they are committed to supporting Kula Impact Fund and the entrepreneurs they incubate with between N$14 million and N$40 million.
She also gave an assurance that they will introduce the incubated entrepreneurs to their network of business to help grow them into sustainable enterprises.
The Kula Fund will provide financial assistance to the start-ups after refining their prototype/proof of concept and their business idea, including a cash-flow forecast.
Email: erastus@namibian.com.na
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
