More venture capital needed for Namibian SMEs

Namibia has about 40 000 small and medium-sized enterprises (SMEs) employing close to 200 000 people. However, financial access for starting or expanding a businesses is a challenge.

Speaking at the event ‘Investing in Potential: How Venture Capital & Private Equity Can Drive Namibia’s Economic Transformation’ in Windhoek on Tuesday, Manta Ventures director Nicole Maske said the start-up sector needs venture capitalists and angel investors.

She said although the sector contributes 12% to the gross domestic product, several barriers continue to hold back entrepreneurs.

“Challenges include capital, ecosystem depth, perception and policy friction. We need to mobilise local capital, support incubators and angel networks, and ensure government support to align incentives and remove barriers,” Maske said.

In 2024, Namibia’s start-up ecosystem ranked eighth in Africa and 87th globally.

She added that Namibia is not too small, it is just untapped.

Economic Association of Namibia (EAN) vice president Jesaya Hano-Oshike says venture capital and private equity can be used to grow the industry and fill the funding gap.

He says across the world, venture capital and private equity have proven to be powerful engines for innovation, job creation and inclusive growth.

“In Namibia, where SMEs form the backbone of the economy and access to capital remains limited, venture capital and private equity fill the void by providing funding, strategic guidance, governance and networks,” adds Hano-Oshike.

Venture capital is a form of private equity investment where investors provide funding to early-stage, high-potential start-up companies.

These investments are typically made in exchange for equity or ownership stakes in the company.

Ino Harith Capital director Ferdinand Nghiyolwa says Namibia is well-positioned to attract investment if its potential is harnessed effectively.

“Namibia is a growing economy with large untapped domestic savings, an infrastructure gap across energy, logistics and digital connectivity, a young population and rising entrepreneurial activity.

These are strong reasons for venture capital and private equity investment,” says Nghiyolwa.

The event was hosted by EAN, in partnership with the Hanns Seidel Foundation.

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