Content
Due to its small market size, dependence on South Africa and the dominance of mining, raw material exports and agriculture, Namibia’s economy is not well diversified. As a result, global developments – such as the COVID-19 pandemic and Russia’s war of aggression against Ukraine – have a particularly strong impact on the economy. This affects the roughly 71,000 micro, small and medium-sized enterprises (MSMEs) above all. Namibia’s private sector comprises a small formal segment and a large informal segment that is made up mainly of micro-enterprises. Low productivity and uncoordinated funding also impact economic performance, with a lack of effective coordination between public and private institutions.
The newly established Namibia Investment Promotion and Development Board (NIPDB) can help with creating a straightforward, transparent business environment and with coordinating funding for MSMEs.
Objective
The long-term competitiveness of micro, small and medium-sized enterprises in Namibia with growth potential is supported.
Approach
The project works with NIPDB to optimise existing funding programmes and initiate new ones. These help Namibian MSMEs to improve their competitiveness over the long term. The project focuses on two main areas:
1. One is to establish an MSME fund in cooperation with NIPDB. This will enable the provision of needs-based, gender-sensitive financial support from NIPDB for MSMEs with growth potential. The project also assists with tender procedures for the funding programmes.
2. In parallel, the project advises NIPDB on expanding existing MSME funding programmes as well as developing new programmes and integrating them sustainably into NIPDB’s structures.
Last update: August 2024