Africa-Press – Namibia. Minister of Works and Transport, Veikko Nekundi, has called for a reform of the government’s approach to empowering Small and Medium-sized Enterprises (SMEs), criticising the current system as severely flawed.
Yesterday, Nekundi met with SMEs in Windhoek, to discuss their challenges in delivering on government projects and collaboratively explore solutions.
The minister emphasised that SMEs are the backbone of Namibia’s economy and should not be overlooked.
“You play a vital role in our economy. You are an SME today, but you could be a major player tomorrow,” he said, encouraging business owners to believe in their growth potential.
Nekundi added that instead of hindering SMEs, the government should support them.
He identified delayed payments to contractors as a key issue that needs to be addressed.
The minister revealed that, upon taking office, he shockingly found invoices overdue for over a decade. He described this as unacceptable and a sign of a lack of commitment to national development.
He mentioned that around N$1 billion in interest on overdue invoices could have been used for building homes, clinics, and other critical public infrastructure.
The minister also criticised a toxic environment in the public sector where officials intentionally complicate contractor issues to terminate contracts and give them to favoured individuals under the guise of emergency procurement. He stated this mentality has created hostility towards SMEs, with some being deliberately frustrated and punished for problems beyond their control.
“As a State, we cannot be responsible for sanctioning SMEs. That’s reckless leadership,” Nekundi warned. Instead of creating more barriers, he urged officials to act responsibly by addressing weaknesses and enhancing capacity.
He stressed that SMEs serve the people of Namibia, not just the government.
Consequently, failing to support SMEs ultimately lets down the entire population.
“We are failing the people of Namibia if we cause you to fail,” he declared.
Nekundi expressed concern that government inefficiencies contribute to unemployment, business closures, poverty and crime.
“We must have the same level of trust in you as you have in your government,” he said.
He pointed out that SMEs need confidence that the government will treat them fairly and pay promptly, while the government must trust contractors’ dedication and quality of work.
He also expressed frustration over the delayed enactment of the long-awaited Construction Industry Bill, which had yet to reach him despite repeated requests over months.
Nekundi committed to advancing the Bill, noting its importance for industry regulation and empowerment.
He highlighted that empowering those who lay Namibia’s foundation is vital for future prosperity.
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