Limited access to loans still a hindrance to SMEs

A three-day business forum held in Gobabis for the small-to-medium enterprises (SME) sector ended on high note with local entrepreneurs exhibiting their trade wares.

The forum organised by Joint Consultative Committee (JCC) and Small Business Information Centre, is one of the quarterly workshops done in a bid to assist the development of SMEs. The workshop afforded locals an opportunity to interact with officials from various institutions who provided the sought-after relevant information.The event, attended by the Deputy Minister of Trade and Industry Bernard Esau, the mayor, chief executive officer and councillors of Gobabis town council, representatives from Namibia Economic Policy Research Unit, the Development Bank of Namibia and Namibia Rural Development Project, was an eye-opener to the local business community.The business people raised concerns that ranged from access to loans to start-up their businesses, how to make use of the Trans-Kalahari highway and how break into the market in Gobabis and the Omaheke region.In his keynote address, deputy minister Esau who the guest of honour said Government had put in place policies for the development of the SME sector, and called on the gathering to take advantage of the programmes.He said N$2 million had been put aside in the budget for SMEs and said it was up to the businesspeople to grab the opportunity.”In the drive for the private sector development, special attention is given to the promotion of SMEs.Experience worldwide has shown that the formal sector alone cannot serve as the engine of economic growth, nor does it have the absorptive capacity to address critical challenge of job creation.”The SMEs sector is where the majority of self-employment is created and a generation of income to the previously disadvantaged people of Namibia.”In his adress, Gobabis CEO Sinclair Aspara said the town, was grappling with the need for change admitting there were challenges to be faced.”At the root of these pressures are conflicting political and economic interests…which are seriously undermining development opportunities; a fragmented society wide inequalities and profound social disintergration of two economies…”He, however, assured the business community that the new council would address promoting of investment, economic growth and job creation.According to Nepru, there are currently an estimated 30 000 SMEs in the country, who last year contributed 10,74 per cent to the Gross Domestic Product compared to 8,43 per cent in 2002.NEPRU’s senior researcher Dr Christoph Stork said SMEs labour force working fulltime in the SME sector was up to 19,8 per cent from 15 per cent previously.The workshop afforded locals an opportunity to interact with officials from various institutions who provided the sought-after relevant information.The event, attended by the Deputy Minister of Trade and Industry Bernard Esau, the mayor, chief executive officer and councillors of Gobabis town council, representatives from Namibia Economic Policy Research Unit, the Development Bank of Namibia and Namibia Rural Development Project, was an eye-opener to the local business community.The business people raised concerns that ranged from access to loans to start-up their businesses, how to make use of the Trans-Kalahari highway and how break into the market in Gobabis and the Omaheke region.In his keynote address, deputy minister Esau who the guest of honour said Government had put in place policies for the development of the SME sector, and called on the gathering to take advantage of the programmes.He said N$2 million had been put aside in the budget for SMEs and said it was up to the businesspeople to grab the opportunity.”In the drive for the private sector development, special attention is given to the promotion of SMEs.Experience worldwide has shown that the formal sector alone cannot serve as the engine of economic growth, nor does it have the absorptive capacity to address critical challenge of job creation.”The SMEs sector is where the majority of self-employment is created and a generation of income to the previously disadvantaged people of Namibia.”In his adress, Gobabis CEO Sinclair Aspara said the town, was grappling with the need for change admitting there were challenges to be faced.”At the root of these pressures are conflicting political and economic interests…which are seriously undermining development opportunities; a fragmented society wide inequalities and profound social disintergration of two economies…”He, however, assured the business community that the new council would address promoting of investment, economic growth and job creation.According to Nepru, there are currently an estimated 30 000 SMEs in the country, who last year contributed 10,74 per cent to the Gross Domestic Product compared to 8,43 per cent in 2002.NEPRU’s senior researcher Dr Christoph Stork said SMEs labour force working fulltime in the SME sector was up to 19,8 per cent from 15 per cent previously.