In a bid to address the issues surrounding small and medium enterprises (SMEs) in Namibia, Popular Democratic Movement (PDM) MP Maximalliant Katjimune tabled a motion aimed at investigating bottlenecks hindering SME financing in the country.
The motion, according to Katjimune, seeks to unlock greater access and economic potential within this vital sector of the economy.
The SME sector, a cornerstone of any nation's economic landscape, stands as a significant contributor to global enterprises, workforce employment, and GDP, with Namibia reflecting these trends.
Despite its pivotal role, research reveals a staggering reality where a substantial number of SMEs face collapse within their ascent years, exacerbated by recent global challenges such as the 2019 coronavirus pandemic and geopolitical tensions.
The motion highlights a critical contradiction between encouraging youth to become job creators through SME ventures and the stark truth that a considerable percentage of SMEs in Namibia do not succeed.
Katjimune highlights that the dissonance underscores the urgency for a thorough investigation into the funding dynamics that sustain SMEs or lead to their downfall.
The motion proposes a series of recommendations for consideration, including tax cuts, regulatory reforms, procurement policy changes, and the transformation of industrial zones into SME hubs to alleviate operational costs.
These measures aim to bolster SME resilience and foster sustainable growth within the sector.
Researcher Arney Tjaronda highlighted concerns similar to those expressed by the MP in the motion tabled. Tjaronda emphasised that while businesses and finances are not the main issues, the lack of funding hampers growth alongside insufficient technological progress. Additionally, regulatory obstacles like the registration administrative process are hindering the advancement of SMEs in the industry.
Katjimune further called upon lawmakers and policymakers to adopt innovative funding mechanisms that can revitalise the SME sector in Namibia. The motion will be debated in Parliament.