Africa-Press – Namibia. NEDBANK Namibia, in collaboration with OMDis and Uconomy Namibia, have completed a small and medium-sized enterprises (SMEs) and economic development pilot project aimed at diversifying the economic activities of Oranjemund.
This project, aimed to support and uplift SME development, was initiated by Nedbank Namibia, OMDis and Uconomy Namibia in November last year, and has since delivered designs that are expected to diversify the economy of Oranjemund.
These designs include an online marketplace, business listings and profiles, blog functionality, a labour desk, a ticketing system, project- and task-tracking, and a member login access level.
At least 53 SMEs across 16 industries have gone through this process to integrate, familiarise themselves and benefit from the products and services the project offers.
Out of 53 SMEs, only two of the businesses have their own websites. The system Nedbank Namibia, OMDis and Uconomy Namibia implemented is set to change this, as SMEs will have website hosting an online marketplace that caters to their products and services.
The new project will also cater to automated governance and registration guidance as the pilot project found a need for accounting and tax support.
Nedbank’s communications manager Selma Kaulinge says, “As a source of innovation and an economic engine, the success of micro, small and medium-sized enterprises (MSMEs) can fuel economic recovery due to their innovative and opportunity-seeking nature. However, they need supplementary support. We recognise that this attempt at collaboration is still in its infancy, but evidence delivered by the pilot project so far, may lead to its implementation in other regions of Namibia.”
The initiative also aims to bridge the expertise gap by providing SMEs an opportunity to access a network of local suppliers and clients, as well as development support.
“It is equally important to make investments in long-term structural reforms such as digital and financial inclusion, as well as the development of entrepreneurial skills capacity,” Kaulinge noted.
SME CONTRIBUTION
SMEs play an important economic role in many developing and developed countries. In Namibia, for example, the SME sector contributed over 13% of the gross domestic product in 2012, according to the Namibia Statistics Agency (NSA) report.
A March 2022 NSA census of business establishment report, based on a pilot study which looked at 61 502 establishments between October 2019 and April 2021, confirms that SMEs play an important role in the country.
The census aimed to provide detailed information about the structural and demographic characteristics of business establishments.
The results reveal that most establishments, about 55 800 (90,7%), are categorised as micro establishments, while over 3 900 (6,4%) are classified as small establishments and over 1 400 (2,3%) as medium-sized establishments.
Only 345 (0,6%) of the establishments are considered large.
Despite a high presence of SMEs in Namibia, they are facing significant challenges brought by the scarcity of capital, poor economic conditions, Covid-19 and a lack of access to information.
Local businesses are largely self-funded and show an appetite for growth funding.
According to the Southern African Business Review, SMEs in Namibia suffer from a high failure rate, with the likelihood of business discontinuation four times higher than the rate of established business activity, as defined by the Global Entrepreneurship Monitor.
Projects such as the Oranjemund initiative are, therefore, vital in assisting local businesses escape their restricted market niches.
The initiative will help SMEs expand to satisfy the demands of servicing emerging markets.
This project, aimed to support and uplift SME development, was initiated by Nedbank Namibia, OMDis and Uconomy Namibia in November last year, and has since delivered designs that are expected to diversify the economy of Oranjemund.
These designs include an online marketplace, business listings and profiles, blog functionality, a labour desk, a ticketing system, project- and task-tracking, and a member login access level.
At least 53 SMEs across 16 industries have gone through this process to integrate, familiarise themselves and benefit from the products and services the project offers.
Out of 53 SMEs, only two of the businesses have their own websites. The system Nedbank Namibia, OMDis and Uconomy Namibia implemented is set to change this, as SMEs will have website hosting an online marketplace that caters to their products and services.
The new project will also cater to automated governance and registration guidance as the pilot project found a need for accounting and tax support.
Nedbank’s communications manager Selma Kaulinge says, “As a source of innovation and an economic engine, the success of micro, small and medium-sized enterprises (MSMEs) can fuel economic recovery due to their innovative and opportunity-seeking nature. However, they need supplementary support. We recognise that this attempt at collaboration is still in its infancy, but evidence delivered by the pilot project so far, may lead to its implementation in other regions of Namibia.”
The initiative also aims to bridge the expertise gap by providing SMEs an opportunity to access a network of local suppliers and clients, as well as development support.
“It is equally important to make investments in long-term structural reforms such as digital and financial inclusion, as well as the development of entrepreneurial skills capacity,” Kaulinge noted.
SME CONTRIBUTION
SMEs play an important economic role in many developing and developed countries. In Namibia, for example, the SME sector contributed over 13% of the gross domestic product in 2012, according to the Namibia Statistics Agency (NSA) report.
A March 2022 NSA census of business establishment report, based on a pilot study which looked at 61 502 establishments between October 2019 and April 2021, confirms that SMEs play an important role in the country.
The census aimed to provide detailed information about the structural and demographic characteristics of business establishments.
The results reveal that most establishments, about 55 800 (90,7%), are categorised as micro establishments, while over 3 900 (6,4%) are classified as small establishments and over 1 400 (2,3%) as medium-sized establishments.
Only 345 (0,6%) of the establishments are considered large.
Despite a high presence of SMEs in Namibia, they are facing significant challenges brought by the scarcity of capital, poor economic conditions, Covid-19 and a lack of access to information.
Local businesses are largely self-funded and show an appetite for growth funding.
According to the Southern African Business Review, SMEs in Namibia suffer from a high failure rate, with the likelihood of business discontinuation four times higher than the rate of established business activity, as defined by the Global Entrepreneurship Monitor.
Projects such as the Oranjemund initiative are, therefore, vital in assisting local businesses escape their restricted market niches.
The initiative will help SMEs expand to satisfy the demands of servicing emerging markets.
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