Slow progress for Growth at Home
The need to revise the previous business services support scheme came to light after none of the business plans produced gained approval from local commercial banks.
Augetto Graig – Implementation of the Growth at Home strategy for economic development introduced in 2015 has seen some progress to date.
Ten sector growth strategies have been finalised and 10 industrial facilitators appointed to facilitate the work while the Namibia Trade Forum gets up to speed.
Deputy industrialisation permanent secretary Dr Michael Hamuvindu was the last-minute stand-in for the finance minister when he spoke at the annual general meeting of the Namibian Manufacturers Association yesterday morning, and chose the occasion to present an update on progress made with the implementation of the government’s Growth at Home strategy.
Other milestones reached include the finalisation of a monitoring tool for the evaluation of progress made implementing the strategy. Once ministerial approval is attained, this tool will result in the publishing of progress reports on a quarterly bases, according to Hamuvindu. According to him this is key to efforts to integrate fragmented support schemes for business development currently scattered throughout various ministries, offices and government agencies.
Government has, in principle, decided to follow the example of Ghana and other African countries in implementing the UNDP franchise Empretec programme for training potential entrepreneurs. This flagship programme focuses on teaching behavioural aspects of entrepreneurship proven to be more impactful than previous approaches which focused on knowledge and skills only.
Most attractive is that Empretec in Ghana has become a self-sustaining entity independent of the government budget, which is why Ghanaian experts will be brought in to guide the first six months of implementation and to train Namibian trainers for the future, he said. Final approval is expected in due time after the relevant cabinet committee has satisfied itself that this is the best option, he said.
The need to revise the previous business services support scheme came to light after none of the business plans produced gained approval from local commercial banks. “The quality of our business advisors was not up to scratch,” he said.
According to Hamuvindu, no one can deny that Namibia has the skills to provide quality business development advice and skills but, “the evidence is clear. Since 2009, we have been contracting consultants and advisors but there has been a low acceptance rate of business plans from commercial banks.” He says that efforts have been hampered by, “low- and medium-skilled Namibians plying their skills,” in this field for the government.
Slow progress has also been made in efforts to set up the Namibia Industrial Development Agency (NIDA). NIDA will be a merger of the controversial Offshore Development Agency (ODC) and equally contentious Namibia Development Corporation after the establishment of the agency was approved by parliament last year, he said. Hamuvindu is hopeful this will be achieved by March 2018.
The agency will focus on industrial infrastructure development and also equity development finance, he said. Government-owned industrial land will be leveraged to optimise the agency’s balance sheet and limit its reliance on government coffers.
Meanwhile, efforts are also focused on large-scale legacy projects such as the Kavango cattle ranch where meat processing facilities and a small private game reserve, as well as fodder production facilities are to be set up. In line with the new public private partnership (PPP) law, advertising for private operators will take place in due course, he explained. “Also, the establishment of the northern tannery is being moved to the site that the Ondangwa Town Council has given us,” he said.
In the south, government hopes to establish a swakara wool processing plant, while another big project is a pharmaceutical plant. Progress has been made with the Brakwater industrial park which should open by end of November. Other projects include a garment factory for Keetmanshoop, a handicraft hub for Rundu and a charcoal factory for Otjiwarongo in which the Japanese have shown interest, he said.
Ten sector growth strategies have been finalised and 10 industrial facilitators appointed to facilitate the work while the Namibia Trade Forum gets up to speed.
Deputy industrialisation permanent secretary Dr Michael Hamuvindu was the last-minute stand-in for the finance minister when he spoke at the annual general meeting of the Namibian Manufacturers Association yesterday morning, and chose the occasion to present an update on progress made with the implementation of the government’s Growth at Home strategy.
Other milestones reached include the finalisation of a monitoring tool for the evaluation of progress made implementing the strategy. Once ministerial approval is attained, this tool will result in the publishing of progress reports on a quarterly bases, according to Hamuvindu. According to him this is key to efforts to integrate fragmented support schemes for business development currently scattered throughout various ministries, offices and government agencies.
Government has, in principle, decided to follow the example of Ghana and other African countries in implementing the UNDP franchise Empretec programme for training potential entrepreneurs. This flagship programme focuses on teaching behavioural aspects of entrepreneurship proven to be more impactful than previous approaches which focused on knowledge and skills only.
Most attractive is that Empretec in Ghana has become a self-sustaining entity independent of the government budget, which is why Ghanaian experts will be brought in to guide the first six months of implementation and to train Namibian trainers for the future, he said. Final approval is expected in due time after the relevant cabinet committee has satisfied itself that this is the best option, he said.
The need to revise the previous business services support scheme came to light after none of the business plans produced gained approval from local commercial banks. “The quality of our business advisors was not up to scratch,” he said.
According to Hamuvindu, no one can deny that Namibia has the skills to provide quality business development advice and skills but, “the evidence is clear. Since 2009, we have been contracting consultants and advisors but there has been a low acceptance rate of business plans from commercial banks.” He says that efforts have been hampered by, “low- and medium-skilled Namibians plying their skills,” in this field for the government.
Slow progress has also been made in efforts to set up the Namibia Industrial Development Agency (NIDA). NIDA will be a merger of the controversial Offshore Development Agency (ODC) and equally contentious Namibia Development Corporation after the establishment of the agency was approved by parliament last year, he said. Hamuvindu is hopeful this will be achieved by March 2018.
The agency will focus on industrial infrastructure development and also equity development finance, he said. Government-owned industrial land will be leveraged to optimise the agency’s balance sheet and limit its reliance on government coffers.
Meanwhile, efforts are also focused on large-scale legacy projects such as the Kavango cattle ranch where meat processing facilities and a small private game reserve, as well as fodder production facilities are to be set up. In line with the new public private partnership (PPP) law, advertising for private operators will take place in due course, he explained. “Also, the establishment of the northern tannery is being moved to the site that the Ondangwa Town Council has given us,” he said.
In the south, government hopes to establish a swakara wool processing plant, while another big project is a pharmaceutical plant. Progress has been made with the Brakwater industrial park which should open by end of November. Other projects include a garment factory for Keetmanshoop, a handicraft hub for Rundu and a charcoal factory for Otjiwarongo in which the Japanese have shown interest, he said.
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