Efforts to boost budding entrepreneurs

THE Ministry of Trade and Industry plans to build industrial parks at Oshikuku, Okalongo and Grootfontein, and another in Okahandja, to cope with the upsurge of small and medium sized enterprises (SMEs).

This was said by the Minister of Trade and Industry, Immanuel Ngatjizeko, when motivating his ministry’s budget in the National Assembly on Wednesday. According to statistics from the Ministry of Trade and Industry during the 2005-2006 financial year, 97 new enterprises in the sectors of manufacturing, trading and services were registered across the country and these SMEs are said to have created some 548 jobs.Ngatjizeko also announced that plans were underway to build two slaughterhouses at Omuthiya and Okakarara and an agro-food processing centre at Oshakati, while refurbishment would take place at existing industrial sites across the country.A feasibility study is being done into the development of a production centre for car parts.Besides these plans, the Ministry will help service providers to support SME operators in areas that include feasibility studies, mentorship and management skills.However, Ngatjizeko added that his Ministry was aware of the financial difficulties that SMEs often faced and said the Small Business Credit Guarantee Trust would assist SMEs more in that regard.”While providing all these services, we are mindful of the fact that finance remains a constraint.Therefore, our efforts are still geared towards the restructuring of the Small Business Credit Guarantee Trust, to ensure that those in need of financial support shall continue to benefit from the services of these institutions.”It is our hope that the restructured SBCGT, focusing on micro-lending by providing loans from N$7 000 to N$250 000, shall complement the work of the Development Bank in enhancing access to financing of various SME operators,” he said.The Ministry has several programmes lined up for the year to stimulate the economy.These programmes are trade promotion and facilitation, entrepreneurship and SME development, industrial, infrastructure and private-sector development, domestic market competitiveness, domestic and foreign direct investment promotion and corporate governance.The budget allocation to the Ministry of Trade and Industry for the year 2006-2007 amounts to N$107 million, which is a decrease of around N$7,4 million from the 2005-2006 allocation.According to statistics from the Ministry of Trade and Industry during the 2005-2006 financial year, 97 new enterprises in the sectors of manufacturing, trading and services were registered across the country and these SMEs are said to have created some 548 jobs.Ngatjizeko also announced that plans were underway to build two slaughterhouses at Omuthiya and Okakarara and an agro-food processing centre at Oshakati, while refurbishment would take place at existing industrial sites across the country.A feasibility study is being done into the development of a production centre for car parts.Besides these plans, the Ministry will help service providers to support SME operators in areas that include feasibility studies, mentorship and management skills.However, Ngatjizeko added that his Ministry was aware of the financial difficulties that SMEs often faced and said the Small Business Credit Guarantee Trust would assist SMEs more in that regard.”While providing all these services, we are mindful of the fact that finance remains a constraint.Therefore, our efforts are still geared towards the restructuring of the Small Business Credit Guarantee Trust, to ensure that those in need of financial support shall continue to benefit from the services of these institutions.”It is our hope that the restructured SBCGT, focusing on micro-lending by providing loans from N$7 000 to N$250 000, shall complement the work of the Development Bank in enhancing access to financing of various SME operators,” he said.The Ministry has several programmes lined up for the year to stimulate the economy.These programmes are trade promotion and facilitation, entrepreneurship and SME development, industrial, infrastructure and private-sector development, domestic market competitiveness, domestic and foreign direct investment promotion and corporate governance.The budget allocation to the Ministry of Trade and Industry for the year 2006-2007 amounts to N$107 million, which is a decrease of around N$7,4 million from the 2005-2006 allocation.