Niël Terblanché
Namibia is moving towards bridging the knowledge and resource gaps that many Namibian Small and Medium Enterprises (SMEs) face, particularly aimed at youth-owned businesses that play an essential role in job creation and poverty alleviation.
In this regard, the Economic Association of Namibia (EAN) hosted a landmark discussion on addressing the funding challenges faced by Namibian startups and SMEs in Windhoek on Monday.
The event brought together key players from government, financial institutions, and business associations to explore practical solutions for creating a more supportive financial ecosystem for Namibia’s growing entrepreneurial sector.
The Deputy Minister of Sport, Youth, and National Service, Emma Kantema-Gaomas, while opening the event reiterated the government’s dedication to strengthening youth-owned enterprises.
She said that SMEs are vital to Namibia’s economic landscape, comprising over 40 000 businesses that support 200 000 livelihoods and contribute approximately 12% to the national GDP.
“SMEs are the backbone of our economy,” she said while stressing that bridging the gap in funding access is crucial for these enterprises, particularly those led by young entrepreneurs.
Kantema-Gaomas said that Namibian SMEs face several barriers, with about 90% of these businesses collapsing within five years due to issues such as limited access to finance, regulatory constraints, and market competition.
“To mitigate these challenges, the government has introduced several initiatives designed to improve funding access and foster SME growth,” she said.
Among these initiatives, the Development Bank of Namibia has introduced a venture capital funding mechanism aimed at high-potential SMEs.
This equity-based investment model enables the bank to provide essential growth capital while taking a stake in the business, giving SMEs the financial flexibility needed to scale operations.
According to Kantema-Gaomas, the bank’s recent rollout of the SMEs Recovery Loan Scheme has allocated nearly N$400 million to over 360 businesses by the end of September, demonstrating a strong commitment to using SMEs as catalysts for Namibia’s economic transformation.
She said that another noteworthy initiative is the Green Credit Facility introduced by the Environmental Investment Fund (EIF).
“This programme specifically targets green SMEs and youth-led enterprises, having already disbursed over N$70 million to 118 businesses,” she said.
The minister added that with an additional N$100 million in funding planned, the programme aims to stimulate environmentally sustainable entrepreneurship.
Beyond funding, Kantema-Gaomas encouraged collaboration between financial institutions, government agencies, and business associations to provide a comprehensive support system for SMEs.
She pointed to the recent Credit Guarantee Scheme as an example, which allows SMEs without collateral to access loans through major commercial banks.
“By reducing traditional barriers, this programme helps emerging businesses secure the funding needed to navigate their early stages,” she said.
Dr. Michael Humavindu, Deputy Executive Director of Industrial Development at the Ministry of Industrialization and Trade, expanded on these efforts, advocating for strategic government investments in capacity-building initiatives.
“By investing in capacity building, Namibia can nurture a generation of entrepreneurs who are equipped not only to run successful businesses but also to mentor others,” he said.
He added that this approach will help build a sustainable culture of entrepreneurship.
Humavindo described the event as a step towards bridging the knowledge and resource gaps that many Namibian SMEs face, particularly youth-owned businesses that play an essential role in job creation and poverty alleviation.
“The EAN is dedicated to providing a platform for stakeholders to discuss and create solutions underlines its commitment to advancing economic empowerment in Namibia,” he said.
At the event, other speakers, including Hellen Amupolo, Chief Investment Officer at the Development Bank of Namibia, and Indileni Nanghonga, Agribank’s Manager of Research and Development, provided insights into sector-specific financing opportunities.