Namdeb throws weight behind SME development

THE country’s mining giant, Namdeb, has thrown its weight behind the small and medium enterprise (SME) sector by setting up a wholly owned subsidiary that will deal solely with the requirements of this often marginalised sector of the economy.

The company, which goes by the indigenous name of Oshipe, was created in 2005 but only became operational in February 2006. According to Oshipe Chairman Paulo Shipoke, who is also Namdeb’s Group Business Services Manager, the Oshipe Development Fund “aims to promote entrepreneurship and SME development through investment in commercially viable businesses in Namibia.”The fund targets SMEs, preferably owned by previously disadvantaged Namibians, and successful applicants are provided with both financial assistance and professional business support.Oshipe aims at slightly bigger projects, which the company believes would make a positive impact in the economy, as target investments are from N$500 000 and not exceeding N$1 million.If successful applicants require funding of more than N$1 million, Oshipe would work with its other funding partners – the commercial banks – to supply the required capital.Loans would be repayable over a period of between three and five years, at a prime-linked, market-related interest rate.Oshipe Business Development Manager Janita von Wielligh emphasised that the fund is not for micro-lending and would primarily sponsor SMEs with commercially viable businesses, which could also become part of the Namdeb supply chain.She said Oshipe would take between 26 and 49 per cent of shareholding in approved projects, but would cut ties with the SME when the business proves to be self-sustainable and that there was sufficient skills transfer.”Oshipe is there for development.We don’t want to be an equal-share partner nor a majority-share partner,” clarified von Wielligh.She added that it was common knowledge that SMEs had difficulties in obtaining loans from commercial banks because of a lack of collateral, hence the Oshipe initiative which would use a different and much easier collateral system to make loans more accessible.Since last year, Oshipe has funded six SMEs across the country – three start-up and three existing businesses – and the total investment to date is N$3,7 million; creating some 120 jobs in the process.The funded projects include vegetable production, garment and furniture manufacturing.Von Wielligh said Oshipe would not consider ‘sin industries’ for sponsorship.These include gambling houses, businesses where alcohol and/or tobacco are the main trade and sex shops.According to Oshipe Chairman Paulo Shipoke, who is also Namdeb’s Group Business Services Manager, the Oshipe Development Fund “aims to promote entrepreneurship and SME development through investment in commercially viable businesses in Namibia.”The fund targets SMEs, preferably owned by previously disadvantaged Namibians, and successful applicants are provided with both financial assistance and professional business support.Oshipe aims at slightly bigger projects, which the company believes would make a positive impact in the economy, as target investments are from N$500 000 and not exceeding N$1 million.If successful applicants require funding of more than N$1 million, Oshipe would work with its other funding partners – the commercial banks – to supply the required capital.Loans would be repayable over a period of between three and five years, at a prime-linked, market-related interest rate.Oshipe Business Development Manager Janita von Wielligh emphasised that the fund is not for micro-lending and would primarily sponsor SMEs with commercially viable businesses, which could also become part of the Namdeb supply chain.She said Oshipe would take between 26 and 49 per cent of shareholding in approved projects, but would cut ties with the SME when the business proves to be self-sustainable and that there was sufficient skills transfer.”Oshipe is there for development.We don’t want to be an equal-share partner nor a majority-share partner,” clarified von Wielligh.She added that it was common knowledge that SMEs had difficulties in obtaining loans from commercial banks because of a lack of collateral, hence the Oshipe initiative which would use a different and much easier collateral system to make loans more accessible.Since last year, Oshipe has funded six SMEs across the country – three start-up and three existing businesses – and the total investment to date is N$3,7 million; creating some 120 jobs in the process.The funded projects include vegetable production, garment and furniture manufacturing.Von Wielligh said Oshipe would not consider ‘sin industries’ for sponsorship.These include gambling houses, businesses where alcohol and/or tobacco are the main trade and sex shops.