The Namibia Investment Promotion and Development Board (NIPDB) is urging eligible Namibian micro, small and medium enterprises (MSMEs) to apply for funding assistance through the N$18 million SME Fund.
This is a funding programme under the Promotion of Small and Medium Enterprises Development in Namibia project, a partnership between the National Planning Commission, NIPDB and GIZ.
The project is fully funded by the German federal ministry for economic cooperation and development.
According to a statement issued by NIPDB spokesperson Catherine Shipushu, close to 200 applications had been received from entrepreneurs across the country since applications opened on 10 June.
“This is an indication of the demand for funding among businesses looking to grow beyond their current capacity,” she says, adding that access to finance remains one of the biggest constraints preventing local businesses from scaling, expanding into new markets and creating jobs.
She, however, adds that the applications for the first funding cycle which opened will close tomorrow.
Shipushu says the fund provides grant funding of between N$50 000 and N$100 000, including pitch coaching, business advisory services and access to local and international showcasing platforms, to successful Namibian-registered MSMEs with strong growth, export and investment potential.
“Priority for funding consideration is given to youth-owned businesses – whose owners are aged 18 to 34 years – women-owned businesses, social enterprises and cooperatives, and export-ready businesses operating in sectors such as agriculture and agro-processing, artisanal mining, the blue economy, the circular economy, creative industries, financial services, health and wellness, information and communication technology, manufacturing, and tourism and hospitality,” she says.
She says through engagements with the business community, the NIPDB had noted a growing number of viable businesses in the country, but many lacked the capital to scale production, enter new markets or invest in the systems needed to compete both locally and internationally.
“The SME Fund is designed to close that gap as it provides more than just grant capital and it is also about equipping business owners with the coaching, market access and partnerships they need to compete and grow sustainably,” Shipushu says.
The NIPDB, therefore, encourages all eligible businesses, including women and youth-owned enterprises, to take advantage of this opportunity and apply before applications close, she says.
Shipushu says businesses interested in applying for funding must be Namibian-registered, with at least 51% Namibian ownership and control, registered on the NIPDB MSME database, compliant with the Business and Intellectual Property Authority, the Namibia Revenue Agency and Social Security Commission, and able to submit a business profile and pitch deck.
“They can apply and access full eligibility requirements and application guidelines at smefund.nipdb.com,” she says.
Dynamic Informal Traders Association executive director Tangeni Shindondola, whose organisation is fighting for the recognition of the informal economy, welcomes the funding initiative as it is a grant instead of a loan.
In addition, Shindondola says the amount given is substantial and can allow meaningful growth of small businesses.
“However, some of the requirements are so stringent that they are not pro-growth of SMEs. We need to develop a criteria that benefits the current business climate in the country because currently many regulations need a lot of money which SMEs do not have,” she says.
– email: matthew@namibian.com.na
