The Namibia Investment Promotion and Development Board (NIPDB) has clarified that only part of the £800 000 (about N$16.8 million) ProSME fund will be distributed as grants to small businesses.
NIPDB spokesperson Catherine Shipushu made the clarification in a media statement issued on Monday.
Shipushu says the small and medium enterprises (SME) fund is valued at £800 000, of which only £430 000 (about N$9.5 million) has been earmarked for direct grants through seven competitive funding calls for qualifying businesses.
“The remaining £370 000 (about N$8.2 million) supports programme management, governance, monitoring and evaluation, regional outreach and operational delivery of the broader ProSME project,” she says.
According to Shipushu, the initiative combines grant funding with business development support to improve the competitiveness and investment readiness of small businesses.
She says the project is intended to complement existing financing opportunities by addressing early-stage funding and enterprise development needs, enabling businesses to later access commercial banks, development finance institutions and other funding mechanisms.
By June next year, the ProSME project aims to support 300 micro, small and medium enterprises across all 14 regions, of which 175 enterprises are expected to increase their turnover by at least 5%, while 80 are expected to improve their sustainable business practices.
Shipushu says the initiative contributes to enterprise growth, employment creation and economic diversification in line with the sixth National Development Plan.
Applications for the first SME funding call opened on 10 June and closed on 24 July.
