Patience Makwele
Young entrepreneurs and small businesses across Namibia will have access to an N$18 million grant fund aimed at helping them formalise, expand and create jobs, with the first application round closing on 24 July.
The funding forms part of the Pro-SME Project, a joint initiative between the Namibian and German governments implemented through the National Planning Commission, the Namibia Investment Promotion and Development Board (NIPDB) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Speaking during an information-sharing session on access to finance for youth in Windhoek on Tuesday, Khomas Governor Sam Nujoma urged young entrepreneurs to take advantage of available funding opportunities, saying access to capital remains one of the biggest obstacles to business growth and job creation.
“Talent without capital remains only a promise. An idea that cannot be financed cannot create opportunities for anyone,” Nujoma said.
He said Namibia’s youth represent the country’s greatest reservoir of talent, ambition and entrepreneurial potential but many promising business ideas fail to grow because entrepreneurs struggle to access finance.
Nujoma described micro, small and medium enterprises (MSMEs) as the backbone of the economy, saying they transform skills into livelihoods, create employment and keep money circulating within local communities.
“No nation has ever defeated unemployment or built a true middle class without a thriving small business sector,” he said.
The governor said businesses such as tailoring, carpentry, welding, fresh produce trading, car washes, recycling and creative enterprises are central to economic development and should receive greater financial support.
Providing an overview of the initiative, GIZ project manager Vistorinah Ilonga said the Pro-SME Project was launched in July 2024 and will run until June 2027, with the possibility of an extension if additional implementation time is required.
She said Germany has committed €2 million to the project, of which €800,000 which is about N$18 million has been allocated to establish the SME Fund managed by the NIPDB.
According to Ilonga, the fund will provide non-repayable grants ranging from N$50,000 to N$1 million to eligible businesses that have been operating for at least one year.
She said the grants are designed to help businesses formalise their operations, improve regulatory compliance, strengthen governance, access new markets and become investment-ready rather than burden entrepreneurs with debt.
In addition to financial support, beneficiaries will receive business mentorship, advisory services, market access support and assistance to improve export readiness and integrate into supply chains.
The project aims to support at least 300 MSMEs across all 14 regions by 2027, while helping at least 175 businesses increase their revenue by a minimum of 5% through financial and non-financial support.
Priority will be given to youth-owned enterprises, women-led businesses and businesses with high growth potential across sectors including agriculture, manufacturing, technology, creative industries and services.
Representatives from the Development Bank of Namibia, Agribank, the Environmental Investment Fund and the NIPDB attended the information-sharing session, which sought to connect aspiring entrepreneurs with available financing opportunities and strengthen partnerships between government and development finance institutions.
