THE Tender Board Act will be changed as part of Government’s drive to promote the sector for small and medium enterprises (SMEs), President Hifikepunye Pohamba promised.
Re-launching the Indigenous People’s Business Forum (IPBF) on the President’s behalf last Thursday, Trade and Industry Minister Hage Geingob quoted from the official keynote address that the process of amending the act is already underway.Changes will include higher preferences for SMEs, as the current system of price preferences in the act is not oriented towards the sector. The act will be also be amended so that tender requirements can be relaxed to accommodate SMEs in certain cases.Pohamba’s speech furthermore states that Government is considering modalities to train SME entrepreneurs in the tendering process. Training will focus on the drawing up of business plans, completing tender documents and other aspects of the process.’These measures are being introduced in order to strengthen the SME sector which supports thousands of jobs,’ the President’s speech reads.Apart from changing the Tender Board Act, Government has already introduced specific measures to boost growth opportunities in the SME sector.Government tenders for construction and maintenance less than N$5 million are advertised for SMEs only. Tenders for cleaning, gardening and bush clearing are also reserved for the sector.Furthermore, services like making uniforms for different ministries are set aside for SMEs.’The client ministry would purchase the fabric, while the cut, make and trim are done by local service providers,’ Pohamba said.In addition, 40 per cent of ministerial budgets must be put to tender, targeting SMEs. Ministries can therefore not request annual tender exemption for this portion of their budgets.’Ministries are, therefore, requested to identify particular services that can be allocated to SMEs,’ he said.Pohamba acknowledged the lack of capital as a serious constraint for small businesses and said Government will ‘continue to find the ways and means to remove the impediments faced by SMEs’. However, he urged the IPBF to encourage local businesses to utilise the existing mechanisms and financing channels offered by the Development Bank of Namibia (DBN) and by the commercial banks to raise the necessary capital.jo-mare@namibian.com.na
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!
