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A Guide to Mentorship, Training, and Financial Assistance in Namibia
Namibia is taking steps to support its young entrepreneurs and give them the financial assistance (sme funding in namibia) they need to succeed. In this blog post, we will introduce Mentorship, Training, and financing opportunities available to young entrepreneurs in Namibia
The Namibian government, as well as private banks, offer various resources and services for SMEs and startups looking to establish or grow their businesses. Small and medium-sized enterprises (SMEs) play a significant role in driving the economy of Namibia. However, starting and growing a business can be challenging, especially for those who lack the necessary resources and skills. This blog post outlines some of the mentorship, training, and financial assistance options available to SMEs in Namibia. Here are some of the main options:
Namibia Chamber of Commerce and Industry (NCCI)
The NCCI offers enterprise development services through its 17 branches countrywide. SMEs can take advantage of its SME Development, Trade and Facilitation, Information and Networking, and Advocacy services. NCCI caters to various types of businesses, including Micros, SMEs, Startups, and those with a legal entity. (sme funding in namibia)
Ministry of Gender Income Generating Activity Grant (IGA)
The Income Generating Activity Grant is a grant in the form of materials and equipment given to small community members to start small businesses or projects. Women are especially encouraged to apply, with 75% of all grants going to female applicants. The minimum grant is N$5,000 and the maximum is N$30,000.
Standard Bank SME Portfolio (sme funding in namibia)
Standard Bank’s SME Division caters to SMEs with a turnover of 0-10 million N$. The bank offers various financing options, including a Business Current Account with Overdraft, Business Revolving Credit Plan, Property Finance or Business Mortgage Loans, Vehicle and Asset Finance, and debt loans. Standard Bank also offers mentoring and training.
FNB SME Portfolio (sme funding in namibia)
FNB’s SME Division caters to SMEs with a yearly turnover of 3-10 million Namibian dollars. It offers term loans, asset-based finance, overdraft facilities, and contract and tender financing. FNB also provides training and mentoring in cooperation with SMEs.
MINISTRY OF INDUSTRIALIZATION, TRADE AND SME DEVELOPMENT (MITSMED) Equipment Aid Scheme
The MINISTRY OF INDUSTRIALIZATION, TRADE AND SME DEVELOPMENT offers an Equipment Aid Scheme to assist SMEs with purchasing necessary equipment. The scheme provides financing through grants, loans, or a combination of both.
MITSMED Rental Services Programme
The Ministry of Industrialization, Trade and SME Development (MITSMED) provides a Rental Services Programme aimed at assisting new or expanding businesses in Namibia. The programme covers the rental costs for a period of 12 months to help boost the competitiveness of the business in its early stages. This programme is available to businesses in various sectors such as renewable energy, agriculture, environment, equipment/infrastructure, growth/expansion, innovation/research, and other target areas. The beneficiaries of the programme include micros, startups, and businesses with a legal entity.
MITSMED Site and Premises Programme
The Ministry of Industrialization, Trade and SME Development (MITSMED) has established the Site and Premises Programme, which is implemented by the Namibia Development Cooperation. This programme is aimed at supporting the growth and development of SMEs in Namibia. The programme provides land for business development and creates infrastructure for lease at affordable rental rates. This will create a best practice model for SMEs to grow and create jobs, contributing to the growth of the economy. The beneficiaries of the programme include micros, startups, and businesses with a legal entity.
Development Bank of Namibia (sme funding in namibia)
The Development Bank of Namibia (DBN) is a financing institution that provides funding for sustainable initiatives and viable enterprises in Namibia. The bank offers several loan facilities to help businesses start or expand operations. These facilities include Franchise Finance, Contract-based Finance, Project Finance, Enterprise Development Finance, and Trade Finance. The beneficiaries of the programme include big corporates, SMEs, startups, and businesses with a legal entity. The types of financing offered by DBN include debt (loans), equipment, equity, and mentoring/training (BDS).
Trustco Bank Namibia (sme funding in namibia)
Trustco Bank Namibia provides financing to SMEs through its branch network in Namibia. The bank mostly offers commercial loans with a repayment period of 60 months for individuals and 120 months for non-individuals. The repayment period does not have a minimum requirement. The loan approval process includes cashflow requirements, collateral requirements, credit references, credit approval, and interest capitalization dependent on payment frequency. The insurance requirements for the loan include life insurance (Yambu Life) and/or own credit life. The beneficiaries of the programme include micros, startups, and businesses with a legal entity. The type of financing offered is debt (sme funding in namibia).
Bank Windhoek’s ESME Product Portfolio (sme funding in namibia)
The Emerging Small and Medium Enterprises (ESME) division of Bank Windhoek is dedicated to supporting SMEs with a range of products and services. These include SME Transaction Accounts, ESME Savings and Investment Products, Equipment Finance, Commercial Property Finance, Term Loan/Commercial Loan, Co-operative Finance, and Guarantee services. The range of savings and investment options available to ESME clients include Call Deposits, Fixed Deposits, and Notice Deposits. The commercial property finance option is long-term finance provided for the purchase, construction, extension or renovation of commercial property. The co-operative finance product is tailored for clients who are registered and operating as Non-Agricultural co-operatives and are registered with the Co-operatives Division in the Ministry of Agriculture, Water and Forestry.
Agribank: A State-Owned Financial Institution Promoting Agriculture
Agribank is a state-owned financial institution in Namibia, dedicated to advancing money for agriculture and related activities. It operates under the Agricultural Bank of Namibia Act, No. 5 of 2003. The bank offers various loan products for short-term (1-5 years), medium-term (5-8 years), and long-term (10-25 years) periods.
Short-term loans: ( Agribank sme funding in namibia)
- Production Loan: to finance livestock, horticulture, and cereal crop production. Repayable in 1 year and can be extended for 5 years. Available to full-time and part-time farmers.
Medium-term loans: (Agribank sme funding in namibia)
- Livestock Loan: for purchasing livestock to stock or restock the land. Repayable over 6-8 years.
- Infrastructure & Implement Loan: for acquiring new equipment and implements, such as irrigation equipment and boreholes.
- Vehicle and Tractor Loan: for purchasing new or second-hand vehicles and tractors.
- Improvement Loan: for improving or repairing existing infrastructure and implements.
Long-term loans: (sme funding in namibia)
- Purchase of Farmland: for well-established commercial farmers to purchase and utilize the land for food security and job creation. Repayable over 20-25 years with collateral required.
- Loan Consolidation Facility: combines multiple Agribank loans into one loan. Requires collateral.
- Bush Control and Utilization: to reduce bush density and increase land productivity and income.
Specialized Loans:
- Aquaculture: to finance freshwater and marine aquaculture projects. Available in short, medium, and long-term periods.
- Solar Energy: for purchasing and installing alternative energy sources, such as solar electricity.
- No Collateral Loan Product: for salaried communal and commercial farmers to purchase seasonal inputs, livestock, etc. without collateral.
- Agro-Processing Loan: for value-addition and processing in the food, beverage, and forestry sectors.
- Financial Intermediaries Loan: to provide loan facilities to financial intermediaries that will on-lend to primary and secondary agricultural industries.
Agribank also offers special schemes:
- Affirmative Action Loan Scheme (AALS): enables emerging farmers from disadvantaged communities to acquire farms. Repayable in 25 years with free interest and capital repayment for the first 3 years for full-time farmers.
- Draught Animal Power Acceleration Program (DAPAP): to finance cattle, donkeys, and horses for agricultural purposes.
- Labourers’ Housing: for building labourers’ houses with a 4% interest rate.
Business Financial Solutions: NamPro Fund
Namibia Procurement Fund offers bridging finance solutions to high-growing SMEs in need of short term finance to meet contract obligations. It offers short term working capital finance (sme funding in namibia), operating finance leases, asset backed finance leases, and performance guarantees. It targets SMEs with legal entity and covers sectors such as agriculture, equipment/infrastructure, exports, growth/expansion, innovation/research, restructuring/merger, debt (loans), equipment, and mentoring/training (BDS).
Credit for Youth In Business (CYB)
CYB, hosted by the National Youth Council of Namibia, is a loan guarantee program for young Namibians between 18 and 35 years who lack collateral for loans from commercial banks. It offers loans from N$3,000 to N$20,000, with 10% contribution from the beneficiary, mandatory training, and is implemented by Bank Windhoek. It covers debt (loans), mentoring/training (BDS), micros, SMEs, startups, with or without legal entity.
Erongo Development Foundation (sme funding in namibia)
The Erongo Development Foundation (EDF) through the implementation of the Erongo Micro Credit Scheme offers micro loans to micro, small, and medium-sized enterprises (MSMEs) operating in the Erongo region of Namibia. The loan amount can range from N$ 10,000 to N$ 200,000, depending on the business needs. Target Area
• Agriculture • Equipment/Infrastructure • Exports • Growth/Expansion • Innovation/Research • Restructuring/Merger
Beneficiaries
• Micros • SME • Startups • With legal entity • Without legal entity
Type of financing (sme funding in namibia)
• Debt (Loans) • Mentoring/Training (BDS) Location
Small Business Support in Namibia: Regional Councils Making a Difference
The Ministry of Urban and Rural Development is partnering with a few regional councils in Namibia to support small businesses through micro finance and regional specific action plans.
Small businesses play a crucial role in the development of local economies and job creation. The Regional Councils are working to support and foster the growth of these businesses through various initiatives. We will take a look at programs like the Kavango-West Regional Council’s One Region, One Initiative (OROI), the Erongo Regional Council’s Micro Finance Scheme (sme funding in namibia), and the Zambezi Regional Council’s Cash-for-work/Food-for-work (CFF/W) Program.
Omusati Regional Council
The Omusati Regional Council is offering assistance through its Micro Finance Programme, aimed at private individuals, start-ups, micro businesses and group submissions in the Omusati region. The program provides financing for agriculture, equipment/infrastructure, other targeted areas, and starting a company.
Kavango West Regional Council
The Kavango West Regional Council is offering assistance through its Regional Specific Action Plan (RSAP). This program provides financing for equipment, mentoring/training (BDS) for startups and micro businesses, and supports growth and expansion in the equipment/infrastructure sector and starting a company. Group submissions are accepted in this program as well.
These programs aim to help small businesses grow and thrive in their respective regions and offer valuable resources to entrepreneurs looking to make a difference in their communities.”
Zambezi Regional Council: Rural Status Scheme
The Zambezi Regional Council has established the Rural Status Scheme to create employment opportunities for unemployed individuals residing in rural Zambezi. The scheme provides financing for equipment and mentoring/training (BDS) for micros. The target area includes equipment/infrastructure and training and is located in Zambezi.
Zambezi Regional Council: Constituency Development Fund
The Zambezi Regional Council has established a Constituency Development Fund to generate income and create employment opportunities for locals within the region. The target areas are agriculture and equipment/infrastructure. Startups are the primary beneficiaries, and financing is provided for equipment. The location of the fund is in Zambezi.
Omusati Regional Council: RSAP
The Ministry of Urban and Rural Development in collaboration with the Omusati Regional Council provides assistance to businesses in the Omusati Region through its Regional Specific Action Plan (RSAP). The equipment and infrastructure financing is available for private individuals, startups, micros, and SMEs. The location is in the Omusati region.
Otjozondjupa Regional Council: One Region, One Initiative (OROI)
OROI promotes innovation and value addition of local resources and enhances income generation opportunities for rural communities through SME development. It offers equipment, mentoring/training (BDS), equipment/infrastructure, innovation/research, to micros and startups in the Otjozondjupa region.
Otjozondjupa Regional Council: Micro Finance Scheme
This funding scheme provides financing to SMEs and startups in the Otjozondjupa region for initiatives in agriculture, equipment/infrastructure, growth/expansion, and other target areas. It offers grants and is open to SMEs.
Hardap Regional Council Micro Financing Scheme (sme funding in namibia)
The Hardap Regional Council provides support to SMEs within the region through its Micro Financing Scheme. The scheme offers financing in the form of grants to SMEs and startups with a legal entity in the Hardap area.
Kavango East Regional Council Income Generating Projects
The Ministry of Urban and Rural Development, in collaboration with the Kavango East Regional Council, provides assistance to businesses in the region through its Rural Development and Income Generating Projects. The programme helps businesses with equipment/infrastructure, growth/expansion, and starting a new company. The beneficiaries of the programme include micros, SMEs, startups, and businesses with or without a legal entity.
Ohangwena Regional Council Micro-Finance Scheme (sme funding in namibia)
The Ohangwena Regional Council provides assistance to SMEs in the region through its Micro-Finance Scheme. The beneficiaries of the programme include micros and SMEs. The type of financing offered by the programme is equipment and equipment/infrastructure to help businesses with growth and expansion. The location of the programme is in Ohangwena.
Kavango-West Regional Council: One Region, One Initiative (OROI)
The Kavango-West Regional Council is committed to improving the livelihood of people within the region through its OROI program. This initiative provides financing and mentoring/training (BDS) support to micros, startups, and businesses without a legal entity in the areas of equipment and innovation/research. The aim is to create employment and enhance the capacity of these businesses to grow and thrive.
Erongo Regional Council: Micro Finance Scheme (sme funding in namibia)
The Erongo Regional Council is supporting small business owners in the Daures, Karibib, and Walvisbay constituencies through its Micro Finance Scheme. This initiative provides financing in the form of equipment, grants, and mentoring/training (BDS) to micros, SMEs, startups, and businesses without a legal entity in the areas of agriculture, equipment/infrastructure, growth/expansion, and starting a company.
Zambezi Regional Council: Cash-for-work/Food-for-work (CFF/W) Program
The Zambezi Regional Council is working to create employment and develop rural infrastructure through its CFF/W program. This initiative provides financing and mentoring/training (BDS) support to micros in the form of equipment. The program also accepts group submissions, allowing for increased collaboration and support within the community.
Zambezi Regional Council’s Micro Finance Scheme (sme funding in namibia)
The Zambezi Regional Council is committed to creating employment opportunities for unemployed individuals residing in rural areas. The Micro Finance Scheme is an initiative that provides financing (sme funding in namibia) for equipment and mentoring/training services to support the development of small businesses. The target areas for this initiative include equipment/infrastructure and training. The location of the scheme is the Zambezi Region.
Omaheke Regional Council: Rural Employment Scheme
This scheme aims to create employment opportunities for young people in Rural Omaheke, through support in agriculture, equipment/infrastructure, growth/expansion, and other target areas. It offers grants to micros, SMEs, and startups.
Zambezi Regional Council: Food Security and Nutrition Programme
This programme aims to uplift the living standard of unemployed individuals in Rural Zambezi through employment opportunities and support for growth/expansion.
It offers equipment and mentoring/training to micros.
Kavango West Regional Council Micro Finance: (sme funding in namibia)
The Kavango West Regional Council has established the Micro Finance Scheme and Rural Employment Scheme to generate income and create employment in the region. The scheme provides equipment, mentoring and training to start-ups and micro businesses.
The Regional Councils in Namibia are actively working to support small businesses and improve local economies. By providing financing and mentoring support, these initiatives aim to help businesses grow and succeed. If you are a small business owner in Namibia, we encourage you to explore these programs and take advantage of the resources they offer.”
Namibia Business Innovation Institute
The Namibia Business Innovation Institute (NBII) is a department of the Namibia University of Science and Technology (NUST) that offers training, mentoring, and business support services to entrepreneurs and researchers looking to establish or commercialize their innovative technologies. NBII provides the following programs for SMEs:
- Entrepreneurship and Incubation Program
- Mentoring and Coaching
- Entrepreneurship Circles
- Innovation Market Place
- Innovation Challenge
- Outreach Programmes
The Mentoring/Training (BDS) covers SMEs, startups with and without legal entities, and covers growth/expansion, starting a company, and training on a local (Khomas) and national level.
Kongalend (sme funding in namibia)
KONGALEND is a microfinance institution that offers a range of affordable and accessible micro financial Assistance, including loans for small, medium, and micro-enterprises (SMMEs). Kongalend offers five types of loan products:
- SMME Power Loan: to acquire equipment, machinery, or raw materials for small businesses.
- Group Power Loan: for active members of community-based savings groups to generate income through small business activities.
- People Power Loan: for micro-entrepreneurs who are active members of a community-based group of micro entrepreneurs and graduates from Kongalend’s Group Power loans.
- Lima Power Loan: for small-scale farmers engaged in crop production to establish and grow their agri-businesses.
- Solar Power Loan: to finance the acquisition of renewable energy technologies.
Kongalend loans range from N$1,000 to N$250,000 and require a cash security build-up contribution equal to three to eight monthly loan instalments, depending on the loan and term. Repayment periods range from 36 to 48 months.
Namibia Youth Credit Scheme: (sme funding in namibia)
This programme, run by the Ministry of Sports, Youth and National Service, provides small loans and business training to unemployed young people between the ages of 18 and 35. The loans are given to individuals in groups from the same community and are repayable over 36 months.
NEDBANK SME Product Portfolio: (sme funding in namibia)
NEDBANK recently launched its SME division and offers various financing options for SMEs (sme funding in namibia), including business loans, asset-based finance, commercial property finance and contract finance. The loans range from a minimum of N$100,000 to N$5 million.
Development Bank of Namibia Skills-based finance for young artisans:
The Development Bank of Namibia provides finance for young professionals with NQF3 qualifications and above in fields such as boiler making, electrical work, plumbing and more. The financial Assistance is provided as a limited pilot programme (sme funding in namibia).
Development Bank of Namibia Skills-based finance for young professionals:
Similar to the finance for young artisans, this pilot programme provides finance for young professionals with NQF5 qualifications and up. The finance can be used for start-ups or existing enterprises and is provided for the duration of the agreement between the recipient and the Development Bank of Namibia (sme funding in namibia).
Namibia offers a range of resources for SMEs and startups to access mentorship, training, and financial assistance to grow their businesses. It is crucial for entrepreneurs to do their research and explore their options to determine the best fit for their specific needs.
Starting and growing an SME in Namibia can be challenging, but with the mentorship, training, and financial assistance options outlined above, SMEs have access to the resources they need to succeed. Whether it’s through grants, loans (sme funding in namibia), or mentoring, these initiatives provide SMEs with the tools and support they need to thrive in the Namibian economy
