{"id":69940,"date":"2024-05-29T17:01:26","date_gmt":"2024-05-29T17:01:26","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth"},"modified":"2024-05-29T17:25:32","modified_gmt":"2024-05-29T17:25:32","slug":"boosting-smes-to-drive-economic-growth","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth","title":{"rendered":"Boosting SMEs to drive economic growth"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>In the face of a recovering economy, soaring inflation and high interest rates, small business owners in Namibia are navigating challenging times. Now more than ever, supporting Small and Medium Enterprises (SMEs) is imperative, given their significant contribution to the Namibian economy. It is estimated that there are over<\/p>\n

40 000 SMEs in Namibia, supporting the livelihoods of more than 200 000 people and contributing approximately 12% to the country\u2019s GDP. These enterprises, defined as having between one and 100 employees and an annual turnover of up to N$10 million, are a source of innovation and job-creation, particularly in rural areas where formal employment opportunities are limited.<\/p>\n

Having assumed the role of Head of SME Banking at Nedbank Namibia in June 2023, Sam Ikela highlights the bank\u2019s alignment with the government and the broader financial services industry\u2019s vision to support the economy\u2019s recovery from the Covid-19 pandemic.<\/p>\n

\u201cWith the spotlight increasingly on the SME sector, widely acknowledged as a pivotal driver for recovery, we\u2019re committed to supporting its resurgence,\u201d he emphasised.<\/p>\n

A significant hurdle hindering SME growth globally is the surge in inflation, exacerbated by the lack of access to finance. During the fourth quarter of 2023, more than half of US-based small businesses cited inflation as their biggest challenge, underscoring the pressing need for financial support and stability in the SME sector.<\/p>\n

\u201cThe trend is similar locally,\u201d said Ikela. \u2018Tailored lending solutions and fast-tracking<\/p>\n

of application processes could provide a crucial lifeline to cover operational expenses such as salaries, rent, lease agreements and contracts with suppliers.\u201d<\/p>\n

He highlights two key initiatives supporting SMEs: the SME Economic Recovery Loan Scheme, a government-backed initiative in partnership with local banks, providing N$500 million to SMEs for improved financial access, covering operational expenses like salaries and rent. Additionally, the Credit Guarantee Scheme, NASRIA offers 60% collateral cover after a successful assessment of an SME\u2019s bankability and lack of collateral.<\/p>\n

As an industry partner, Nedbank Namibia supports these initiatives ,and is expanding its financing portfolio within the SMEs market, offering a wider array of tailored financial products.<\/p>\n

\u201cOne issue we\u2019ve identified is SMEs looking to level up and take on bigger jobs, such as tenders, but lacking the capital to do so,\u201d added Ikela. \u201cOur contract financing solution has emerged as a viable option, providing businesses with funds against tender documents, purchase orders, or project agreements,\u201d he elaborates.<\/p>\n

Certainly, while improved access to finance addresses a significant challenge, it is just one part of the equation for businesses. Given that Namibia\u2019s digital population has exceeded 51%, it has become imperative for SMEs to accommodate an increasingly tech-savvy consumer base.<\/p>\n

Moreover, the implementation of the African Continental Free Trade Area (ACFTA) in January 2021 presents a significant opportunity for Namibian businesses. This agreement has expanded the African e-commerce ecosystem, potentially enabling SMEs to reach approximately 1.2 billion people. Consequently, local SMEs will be able to sell goods and services to participating member countries on more favourable terms.<\/p>\n

\u201cIn response to these developments, Nedbank has introduced Avo Supershop, an e-commerce platform that enables SMEs to market their products and services online,\u201d said Ikela. \u201cThis initiative aims to assist businesses in capitalising on the opportunities presented by the ACFTA and the growing digital landscape.\u201d<\/p>\n

With the burgeoning opportunities for growth, managing risks becomes increasingly crucial for SMEs worldwide, yet it\u2019s often overlooked. According to a survey by Wakefield Research, 90% of small business owners worry that their companies might not have enough insurance coverage. This concern is echoed by Ikela, noting local SMEs\u2019 lack of preparedness for disasters, especially highlighted by the Covid-19 pandemic, which resulted in over 800 business closures.<\/p>\n

By focusing on the collective effort to support SMEs, stakeholders like Nedbank Namibia aim to be a trusted financial services partner, providing the support and confidence that businesses need to scale, innovate and maintain their vital role in the economy.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. In the face of a recovering economy, soaring inflation and high interest rates, small business owners in Namibia are navigating challenging times. Now more than ever, supporting Small and Medium Enterprises (SMEs) is imperative, given their significant contribution to the Namibian economy. It is estimated that there are over 40 000 SMEs […]<\/p>\n","protected":false},"author":84,"featured_media":69939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,236,233],"class_list":["post-69940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nBoosting SMEs to drive economic growth - Namibia<\/title>\n<meta name=\"description\" content=\"In the face of a recovering economy, soaring inflation and high interest rates, small business owners in Namibia are nav ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boosting SMEs to drive economic growth\" \/>\n<meta property=\"og:description\" content=\"In the face of a recovering economy, soaring inflation and high interest rates, small business owners in Namibia are nav ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-29T17:01:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-05-29T17:25:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2024\/05\/sm_1716990591.686881.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"479\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Boosting SMEs to drive economic growth\",\"datePublished\":\"2024-05-29T17:01:26+00:00\",\"dateModified\":\"2024-05-29T17:25:32+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\"},\"wordCount\":657,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2024\/05\/sm_1716990591.686881.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/boosting-smes-to-drive-economic-growth\",\"name\":\"Boosting SMEs to drive economic growth - 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