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Access to finance remains headache for business sector

Local producers are ‘unsung heroes’
The Market Access Support Programme (MASP) was launched last week with a focus on capacity building and financial assistance for businesses.
Jemima Beukes
Trade minister Lucia Iipumbu has underlined that despite hard work and dedication, the private sector still faces numerous challenges, particularly with access to finance, technology, capacity building and lucrative markets.

She said such barriers exist mainly due to the high costs involved in sourcing or acquiring technology and inputs, which are often beyond the reach of potential micro, small and medium enterprises (MSMEs) in the country.

“The high costs are not only due to the high direct purchase costs but also the high cost of access to finance from financial institutions and financial development corporations," the minister explained.

"The first industrial policy of 2012 and its implementation strategy, the Growth at Home Strategy (2014), were adopted and launched. The policy and its strategy prioritised access to local and international markets of locally produced products as key to stimulating and enhancing local manufacturing, processing and value addition in the country,” she added.

She made these remarks on Thursday during the launch of the Market Access Support Programme (MASP), which focuses on capacity building and financial assistance. Applicants will undergo a thorough application, screening, and onsite verification process once they are shortlisted.

Empowerment

Iipumbu emphasised that this support is crucial because project promoters and owners need to be empowered to improve product quality and packaging, master digital marketing and e-commerce and ensure that SMEs are well-prepared to meet the demands of modern markets.

“While financial support in the form of grants will provide an opportunity for qualifying projects to have access to finance, that remains one of the biggest hurdles for most categories of entrepreneurs across all the economic sectors and industries. Therefore, through this programme, tailored financial products in the form of a grant will be offered to assist them to invest in new technologies, expand their operations and enhance their competitiveness,” she said.

Unsung heroes

Iipumbu added that a large section of Namibia’s most disadvantaged population is engaged in micro, small and medium enterprises, cooperatives, associations, community projects, producers and farmers’ groups, and individual enterprises across the country.

“Our various local producers at different levels of operation are the unsung heroes who ensure that our fields are productive, our markets are vibrant, and the communities within which they operate are nourished. However, despite their hard work and dedication, they face numerous challenges, particularly access to finance, technology, capacity building, and entering new and lucrative markets.”

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Namibian Sun 2024-11-24

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