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Economic Empowerment : Related News Stories |
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| Partners | News | Success Stories | Links | Updated: 8/28/2006 |
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 FUNDING TO SMEs ENDS: BUT SUPPORT CONTINUES … - 2006/03/15
The USAID-funded SMEs Compete program ended on February 28, 2006. After a slow start, the project became increasingly effective over the past four years, creating over 564 new jobs, providing over 2,386 SMEs with technical assistance, and training 10,764 employees. The program, implemented by Sigma One Corporation in cooperation with the Ministry of Trade and Industry, assisted "client"SMEs to complete 283 new business transactions worth over 3 million US dollars.
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Targeting small firms owned by historically disadvantaged Namibians, core areas of the program included the expansion of market access, SME participation in trade fairs, the development of market linkages, mentoring, and the development of business and marketing plans. Entrepreneurs in targeted industry sectors such as tourism, building construction, apparel and textiles, leather goods manufacturing and woodwork, have been helped to improve business performance and to become part of Namibia’s mainstream economy. More than 20 SMEs benefited from international exposure by participating at international trade promotion events in Angola, South Africa, the U.S.A. and Germany.
The corporate mentorship program has helped scores of entrepreneurs. Using the skills of volunteer business leaders, the program provided SMEs with techniques to diagnose business performance and constraints that will help them to develop remedial strategies and position their enterprises for growth.
The program also provided grants to 32 business support organizations to increase their capacity to provide technical and, in the case of several banking institutions, financial support specifically targeted for the SME sector.
The USAID-funded program comes to a close having institutionalized a Namibian SME support organization. SMEs Compete, once the name of a project is now the name of a registered Namibian NGO. SMEs Compete has established a name and a niche and in so doing has attracted the attention of other donors and the Namibian private sector. Support from these new partners ensures that SMEs will continue to receive quality services to facilitate their continued growth. |
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![John Gariseb [extreme right] owner of Mukorob Clothing and Safety Wear taking the group on a tour of his facility](images/NAWA41bankers.jpg) SME ENTREPRENEURS IMPRESS BANKERS - 2006/01/26
Representatives of financial service providers recently participated in an observational tour organized by the USAID-funded SMEs Compete project to small and medium-sized enterprises (SMEs) operating around the capital city of Windhoek. Included in the group of 17 participants were the Namibian Stock Exchange, the Bank of Namibia, the Government Institutions Pension Fund, various asset management and stock broking firms, a trust focusing on small business development funded by a leading mining company, and the Ministry of Trade and Industry.
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During interaction with owners of SMEs, the question most frequently asked was whether senior management of financial institutions and other service providers in the sector actually know how competitive Namibia`s SME sector has become and of the contribution that is being made to local economic development.
Entrepreneurs expressed their appreciation to the tour participants for their demonstration of commitment and interest in the country`s SME sector. Many said that they hoped introductions will lead to improved understanding of small firms and of the challenges they face, and - equally important - for SMEs to be considered as potential vendors when it comes to the procurement of goods and services.
As SMEs Compete`s general manager Danny Meyer said in the debriefing session, "It is, as many of you have admitted today, your first direct interaction with SMEs, especially with ones located in the high density suburbs of Windhoek". He added, "I know that the tour may for some have been an eye opener but hopefully for all of you it has reinforced that entrepreneurship is thriving in Namibia and that these small firms are worthy of support….not only in your capacity as financiers but also as potential customers |
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 INVESTOR ROAD MAP WELCOMED BY GOVERNMENT AND PRIVATE SECTOR - 2005/10/13
The Government of Namibia is embarking on a program to reverse the trend in Foreign Direct Investment (FDI) flows which declined from US$ 325 million in 2001 to only US$ 84 million in 2003.
Domestic and foreign investors planning to invest in Namibia will soon benefit from a more investor-friendly business climate. A number of recommendations have been proposed that will simplify the investment and regulatory framework and reduce the time and costs incurred by investors in starting businesses in Namibia.
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Recommendations were made in the Namibia Investor Road Map report prepared with technical assistance supplied by the USAID-funded Southern Africa Regional Trade Hub based in Gaborone and presented at a seminar held at in Windhoek on 15 September, 2005.
The Namibia Investor Roadmap is a comprehensive and detailed diagnostic study of individual steps required of investors to establish and operate a business in Namibia. It recommends a number of policy, regulatory and procedural changes that will reduce the time and costs involved in starting a business in Namibia. The recommendations were developed in consultation with Namibian businesses and Government Ministries. The Government is expected to implement the recommendations as soon as possible to create a more investor-friendly business climate that will attract increased foreign investment and will make Namibia more competitive.
Prime Minister Nahas Angula spoke at the occasion, and while thanking USAID for the technical assistance, assured business and industry that the Government will review the recommendations of the report and develop an action plan for implementation. He also observed that in several sectors Namibia needs modern technology and foreign investment to make it competitive, create jobs to fight severe unemployment and increase incomes.
In his remarks, Mr. Gary Newton, USAID Director, observed: "There are a host of good reasons to invest in Namibia and to do business in Namibia; among them, talented people, very good infrastructure, political stability and an emerging —energetic — democracy. That said, competition is fierce. According to this report, there is still a great deal that needs to be done to improve the investment climate and enhance Namibia’s competitiveness. By reducing barriers to investment and improving the environment for business, Namibia could well set the benchmark for competitiveness for the entire Southern African region." |
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 USAID FORGING CONSTRUCTION CONNECTIONS FOR SMEs - 2005/06/29
Suoma Kankondi-Shililifa, the dynamic and assertive co-owner of Shililifa Property Development first approached the USAID-funded SMEs Compete for advice on how to proceed with two major construction contracts secured in Windhoek and Outapi. Suoma is responsible for the business side of the firm while her husband and co-owner, Moses, takes care of the technical and building construction facet of activity.
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Upon investigation it was observed that the absence of a reliable work vehicle hampered business, and Shililifa was advised to approach the bank with supporting letters of intent from clients and letters of recommendation from satisfied clients. This advice was followed and resulted in the business securing a loan to purchase an entry level pre-owned vehicle that would meet the company’s needs.
Filled with enthusiasm following the success with the bank, the indefatigable Suoma again approached SMEs Compete for advice. It was recommended that she attend the "Is Tendering for You"workshop, which she says provided her with useful insight into the tendering process. Shortly after attending the workshop, the business secured a contract for the construction of 30 houses at Eenhana in the Ohangwena Region in the north of Namibia.
By means of a business linkage facilitated by SMEs Compete with a local building materials supply company, Pupkewitz MegaBuild, the construction SME was able to demonstrate the quality of work and building site management that opened up a relationship with this construction material supply company. Shililifa Property Developers had previously failed to obtain a credit facility with this supplier.
With a newly acquired vehicle, enhanced business skills and linkage to a major supplier provided by SMEs Compete, there appears to be no limit for Suoma and Moses Shililifa, as they continue to build upon their success in the industry, with determination, confidence and commitment. |
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 REGIONAL AND INTERNATIONAL TRADE MADE EASIER - 2005/04/28
The Namibian Regional Trade Programme (NRTP), a two-year USAID-funded program implemented by ECIAfrica Consulting in collaboration with the Namibia Chamber of Commerce and Industry, was officially launched on April 15, 2005 at the NCCI Offices by Hon. Bernhardt Esau, Deputy Minister of Trade and Industry and Gary Newton, the Mission Director of the United States Agency for International Development. Its main objectives are to:
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1. Build capacity and competitiveness of small and medium-sized enterprises (SMEs) owned by historically disadvantaged Namibians (HDN) to export into the Southern African region and beyond;
2. Support HDN SMEs in exploiting franchise opportunities; and,
3. Develop and offer business matchmaking and market information services.
The NRTP identifies and selects HDN SMEs with export and high growth potential. Once identified, a needs assessment is carried out, followed by individually targeted assistance interventions. A few SMEs need only limited support, while most SMEs require more substantial assistance ranging from company restructuring, to product and service improvement, and market exposure.
The Training and Technical Assistance Fund (TTAF), a component of the program, is used to cost share with SMEs to help them fund product development, create marketing materials, and participate in trade fairs, as well as undertake business missions within the region and beyond. Most TTAF funds are used to hire local service providers to assist the firms. Further assistance is for business matchmaking, providing marketing information and enabling HDN SMEs to exploit franchise opportunities and access financing.
Since the establishment of NRTP six months ago, 31 SMEs have benefited from its services, enabling them to enhance their capacity and competitiveness in regional and international markets. Assisted SMEs have recorded business transactions worth N$1.2 million within the first seven months of the program.
Synergies have been established with other SME support institutions in Namibia, as well as with the Ministry of Trade and Industry. In addition, the NRTP assisted-SMEs can access ECIAfrica`s network of regional trade specialists in Zambia, Angola, Tanzania and South Africa, as well as link into the USAID-supported Southern African Regional Trade Hub, based in Gaborone. In his concluding remarks, Gary Newton said, "We look forward to continued collaboration with Ministry of Trade and Industry, ECIAfrica, NCCI and development partners in our collective effort to support the growth of small and medium-sized enterprises in Namibia, the engine of private sector growth in Namibia." |
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 SME`S COMPETE MENTORSHIP PROGRAM - 2005/03/10
The value of mentorship has long been recognized by owners of small and medium businesses all over the world. Although a newcomer to business, the diminutive but dynamic entrepreneur, Christel Sandra Pakote, who owns a rapidly growing cosmetic business with two outlets in Windhoek and a branch in Walvis Bay, is set to benefit from business mentoring.
Mentorship is a practical and cost effective way to access expertise, particularly for small and medium enterprises (SMEs), as the owner of that size of business usually has limited resources. Together with four Namibian Rotary clubs, SMEs Compete launched a Voluntary Executive Mentorship program eighteen months ago in 2003. Known by the acronym VEM, the mentoring program now benefits more than twenty SMEs in Windhoek, Otjiwarongo and in the coastal urban areas of Walvis Bay and Swakopmund.
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VEM facilitates access for owners of small businesses to experienced corporate leaders, professionals and to entrepreneurs who possess a proven track record of successfully starting, operating and expanding an enterprise.
SMEs Compete, a USAID-funded project, provides business services to Namibian small and medium enterprises (SMEs) for the purpose of improving business performance, increasing income and creating jobs. On the other hand its VEM partner Rotary, is an international service organization that started in the city of Chicago a century ago in February 1905.
Pakote`s business, Desert Rose Beauty Cosmetics, of which her husband is a non-participating partner, realized the value of mentorship and the likely benefits to be derived. After attending various capacity building activities of SMEs Compete, she asked to be included in the VEM program. Veteran Oil Company executive and Rotarian, Ger Kegge, who hails from the Netherlands, was selected as her mentor. Kegge managed Shell Exploration Namibia prior to his retirement and is now associated with another firm that forms part of the consortium involved in an off-shore gas exploration project.
As most SMEs do not have resources to seek advice from fee-charging professionals when it comes to making strategic business decisions, access to a mentor can provide such expertise. Somewhat like a big brother who can guide and advise when it comes to solving problems that the businesses may be experiencing, whether those are related to finance, marketing or basic management. |
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 TRAINING HELPS WOMAN-OWNED BUSINESS TO EXPAND - 2004/12/20
Kathrine Shimbulu, the owner of Kamwitulwa Electrical & Building Construction (KEBC), operating in a male-dominated industry, is a prime example of how the USAID-funded SMEs Compete program has empowered entrepreneurs. A client of SMEs Compete since 2003, KEBC benefited from training and one-on-one mentorship in business management, marketing and information technology and in specialized construction cost estimating, tendering and subcontracting.
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A year ago, KEBC was operating from the owner`s house without proper equipment and organization. KEBC now has an office, with a computer and a fax machine; it documents its business properly, and pays its employees social security and worker’s compensation. The company, which was recently awarded another large contract, now employs 75 fulltime staff as well as a dozen intermittent workers and generates approximately US$200,000 per annum in revenue.
Small and medium enterprises (SMEs) provide income and employment to approximately one-third of the most disadvantaged Namibians; however, SMEs are constrained by the lack of practical business management, entrepreneurial and technical skills. USAID provided US$9.2 million to assist SMEs owned by historically disadvantaged Namibians to improve their business skills and to develop new markets, thereby increasing their incomes and creating jobs. The program helps entrepreneurs by providing technical assistance, training, market access, trade fair participation, and assistance with the development of market linkages. USAID is also providing grants to business service organizations to implement training, mentoring, business plan development and marketing plans for their SME clients. |
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 POWERFUL ONLINE TOOLS TO SUPPORT BUSINESS COMMUNITY - 2004/11/02
Thanks to a partnership between USAID and the International Trade Center (ITC), a Geneva-based United Nations trade development agency, two online tools for trade analysis, Trade Map USAID and Product Map are now available to users in Namibia. These powerful online tools were introduced at a workshop held October 20-21, 2004 at a Windhoek hotel. The workshop included participants from business, the Chamber of Commerce, trade organizations and research institutions.
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ITC`s Bastiaan Bijl, the workshop facilitator said, "…these tools involved years of development work within ITC, supported by expertise from around the world. They provide quick answers to the questions exporters and trade advisors ask most: What should I export? Who are my customers? Who are my competitors? Which are the best suppliers? At what prices?"
Thanks to a generous grant from USAID, access to both Trade Map USAID and Product Map is freely available to enterprises and trade support institutions in Namibia. Users in Namibia can use these tools to help design trade strategies, develop export marketing plans, promote regional trade, diversify exports, target investments, assess trade performance, and take advantage of trade opportunities like the US-SACU Free Trade Agreement now under negotiation. Similar workshops have been held in Albania, Armenia, Bangladesh, Colombia, Dominican Republic, Ecuador, Ghana, Haiti, Lebanon, Madagascar, Morocco, Panama, Paraguay, and Thailand.
Interested readers can visit http://www.trademap-usaid.org to get a free password to access these tools. They are easy to use and designed specifically to support international business development.
The International Trade Center is the technical cooperation agency of the United Nations Conference on Trade and Development (UNCTAD) and the World Trade Organization (WTO) for operational and enterprise-oriented aspects of international trade development. As the United Nations focal point for technical cooperation in trade promotion, ITC works with developing countries and economies in transition to set up effective trade promotion programs to expand their exports and improve their import operations. More information is available on http://www.intracen.org. |
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 JUNIOR ACHIEVEMENT NAMIBIA WINTER SCHOOL - 2004/05/19
The first ever Junior Achievement Namibia Winter School took place May 10-14, 2004. The event brought together representatives of Junior Achievement companies from all the regions of the country. Students were able to interact, share ideas and to receive the necessary expertise in order for them to run their respective companies. They were exposed to a number of business professionals who gave them a better understanding of the real business environment. Question and answer sessions allowed the students to obtain valuable insight into the challenges they were experiencing in their own companies. Here are some comments after the completion of the Winter School 2004:
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 "This program taught me about teamwork and how challenges can make us take initiative"(Monica Konghola, a grade 12 learner from A. Shipena High School). "This was a great experience, I learned more about business and entrepreneurship. I sincerely hope that events like this will continue to reach the Namibian youth"(Quinton Hampton, M&K Gertze High, Rehoboth).
Junior Achievement Namibia was formed in 2001 through a grant from USAID, and strives to educate and inspire Namibian young people to value free enterprise, develop entrepreneurial skills and, as a consequence, improve the quality of their lives |
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 NAMIBIAN ACHIEVERS JOIN LEARNERS FROM 101 OTHER COUNTRIES - 2003/12/15
Every year Junior Achievement Youth Enterprise (JA/YE) member nations worldwide are invited to select their top performing students to attend the annual Global Trade Institute Conference, a one-week conference, aimed at enhancing the current JA/YE experience of young achievers by engaging them in activities and lectures on international business, ethics, networking and management. In addition to the one-week conference, learners participate in a number of pre-conference activities that will prepare them for this high impact event.
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 Two learners represented Namibia in the 2003 Global Trade Institute (GTI) conference held in Chicago, U.S. Hannelie Heyman represented the Eldorado Secondary School in Windhoek, while Justina Frans represented Oshakati Secondary School in Oshakati. Hannelie and Justina were top performers in the JA Company program in 2003. The conference was attended by representatives from over one hundred countries. Justina and Hannelie had never been outside the borders of Namibia before, and attending the Global Trade Institutes Conference in the U.S. was a major learning and rewarding personal experience.
According to Justina, "three vital aspects to be a successful entrepreneur came to the fore. If you do not have a vision, you won`t focus to achieve goals. It helps you to stay focused and committed. You must be prepared to take risks and risk should be seen as an opportunity. Teamwork involves giving up someone`s independence, but it should not mean giving up your soul or intelligence. Teamwork always wins and makes work perfect."
Hannelie had the following to share on her return: "Not only did I enjoy myself, but I also learned a lot and gained more confidence. We attended workshops and seminars every day presented by business people and it was really an eye opener to see how involved the private sector is in the development of the youth by sharing experiences. I would like to urge the Namibian private sector to become more involved and share experiences with young people through the Junior Achievement Namibia programs. I also learned about the real business out there and what it takes to run your own business. I am going to start my own business after graduating."
See more on what JA/YE is teaching Namibia`s young people by clicking on the speeches JA/YE Managing Directors made at a recent awards ceremony: ../Speeches |
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 LIFE SKILLS TRAINING THROUGH SPORT FOR VULNERABLE YOUTH - 2003/12/11
In January 2003, the Katutura Youth Enterprise Centre (KAYEC) initiated a new "Life Skills Through Sport"Project with support from USAID, provided through the Namibian Institute of Democracy.
In January 2003, the Katutura Youth Enterprise Centre (KAYEC) initiated a new "Life Skills Through Sport"Project with support from USAID, provided through the Namibian Institute of Democracy. KAYEC began the project at the Martti Ahtisaari School, a primary school with children from very impoverished homes. A KAYEC Life Skills and Sports Officer spends four mornings a week teaching cricket and interacting informally with the school children in Grade 7. |
While sport is the initial draw-card, it is not long before bonds of friendship between the children and the trainer become the main motivation for participation. Appropriate discussion opportunities are utilized by the trainer to engage the children on important life skill topics and to listen to their joys concerns and sorrows. Learning and the exchange of information is informal but effective. Topics discussed include sexuality, HIV/AIDS, parents, peer pressure, fashion, religion and much more. The intention is to engage young teenagers in discussions that will cause them to question the world around them and enable them to make non-pressured choices that will be beneficial to their futures.
For the first time ever, the Martti Ahtisaari School was able to enter a team in the regional schools` cricket league. Equipment was made available through a grant from the British High Commission. The participation of girls in the project has been a great surprise, with girls showing more commitment generally than boys.
In September 2003, one more Trainer joined the training team and another two schools in Katutura were included. Thus far, approximately 253 vulnerable children are involved in this popular project.
What began as something of an experiment (since KAYEC has historically not worked directly with school children) may now be upsized into a fully fledged training program during 2004. KAYEC is likely to use the goodwill platform to build cohesive groups of teenagers to revitalize the Namibian chapter of the International Youth Award program, an award program which originated in the UK and recognizes young people in the age group of 14-25 who have done something special to advance their own personal development and that of their communities. |
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 USAID APPROVES NEW NAMIBIA STRATEGY - 2003/08/18
USAID`s Assistant Administrator for Africa, Constance Newman, has approved USAID/Namibia`s Country Strategic Plan (CSP) for the period 2004-2010. The approval followed a year-long process that included a successful request to the Africa Bureau for program extension last August, a six-month in-country strategy design process, and technical and programmatic reviews in Washington in June. Mission Director Diana Swain, Program Officer Kirk Dahlgren and HIV/AIDS Advisor C. Kirk Lazell, represented the Mission at the Washington reviews.
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Under the new strategy, the Mission is authorized to continue working in the five areas in which it is currently engaged, including basic education, CBNRM, HIV/AIDS, democracy/governance, and private sector development. However, based on discussions with the Government of Namibia and other partners, some strategic shifts within these areas are planned. As well, USAID anticipates continued sharp increases in funding for HIV/AIDS programs.
According to Mission Director Swain, the Mission "will be going through an intense process over the months to come to authorize these new programs, to design activities, and to compete and award new contracts and grants."She added that at the same time, the Mission will also be concentrating on wrapping up ongoing activities that support its current strategy. |
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 JUNIOR ACHIEVERS AIM HIGH - 2003/04/09
Namibia`s youngest managing director? A likely candidate would be 17-year old Ndatila Namundjepo, who recently ran a company owned by 16 young shareholders. As a student of the Jan Jonker Secondary School, and a participant in Junior Achievement program, Ndatila and her classmates operated the school`s "tuck"or snack shop over a 15 week period, then liquidated the company and shared the profits. "We learned the basics of running a business and that we should offer what people expect in terms of quality,"said Ndatila at the end of the program. She said the group had gained basic business management skills, including registering a company, drafting financial statements, and operating through a board and executives.
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The Junior Achievement program is implemented through a local registered entity, Junior Achievement Namibia (JAN), which was established in 2001, as a chapter of Junior Achievement International, an 84 year old Colorado-based organization with affiliates in 113 countries worldwide, 14 of which are in Africa. JAN`s aim is to equip young Namibians with skills to establish and manage small businesses, and through the process, develop an entrepreneurial culture among students and out-of-school youth. Participants also learn how a market-driven economy functions as well as the role business plays in the global economy.
JAN`s start-up is being jointly funded by USAID/Namibia and the United States Government`s Education for Development and Democracy Initiative. This assistance will be phased out in three years time, as the Namibian private sector increasingly takes on responsibility for support of the activities. A local board, composed mainly of private sector representatives, was established in 2002 to provide program leadership.
Programs are running at ten schools in Windhoek and in the northern part of the country. Although the focus is secondary schools, the program has also been initiated at the Polytechnic and Windhoek Vocational Training College. According to Mr. David Groenewald, JAN`s Education Specialist, the goal over the year ahead is to extend the program to three other schools in the south, one or two others in the west, and to an additional vocational training center. The program is hoping to reach 1000 learners by the end of 2003. |
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JOB CREATION AND MORE INCOME ON THE CARDS - 2002/04/04
In a bid to increase the profitability of Namibian small and medium enterprises (SMEs), enhance the job-creation potential of the SME sector, and strengthen the capacity of Namibian business service organizations so that these institutions can offer a sustainable quality service to their SME clients, the United States Agency for International Development (USAID) and the Ministry of Trade and Industry (MTI) recently awarded an approximately US$9 million contract for implementation of a multi-year program, called the Small and Medium Enterprise Competitive Enhancement Program (SMECEP) to the Sigma One Corporation, a U.S. based contractor.
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Sigma One will partner with several local institutions to deliver training and technical assistance to a projected 50 SMEs owned by historically disadvantaged Namibians in the first 2 years of the program. Participating SME owners and employees will gain vital business management skills and receive input on how to exploit business and trade opportunities locally, regionally and internationally by forming industry clusters that will support each other for increased effectiveness, and through joint ventures and other business mechanisms.
Other aspects of the program will include an assessment and identification of niche export markets for Namibian small-scale manufactured products, as well as support provided to the Namibia Chamber of Commerce and Industry to establish a volunteer executive mentoring program.
The program will be implemented in a way that will encourage participation from SMEs in the rural areas. Women-owned and/or —managed businesses will also be targeted for participation in SMECEP activities.
SMECEP is one of three USAID-funded private enterprise development programs, which are all geared towards the economic empowerment of historically disadvantaged Namibians. The other two programs focus on entrepreneurship development among Namibian youth and high school drop-outs (Junior Achievement Namibia) and on the facilitation of business linkages between Namibian businesses and other businesses in the Southern African region, as well as the United States. |
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USAID SUPPORT LEADS TO US$6 MILLION COTTON JOINT VENTURE - 2002/02/26
A US$6 million joint venture agreement was signed between the Namibian company, Jireh Ginning Namibia (Pty) Ltd. and its U.S. counterpart, Chihuahua Cotton & Cattle, Inc. The agreement, which will establish Namibia’s first cotton ginning operation and create value-added products, marks the first successful deal signed under USAID’s Global Technology Network (GTN) activity. The agreement was negotiated with a view to supply cotton lint and other byproducts from the ginning process to export and local markets. The joint venture has been set up as a 40% U.S. owned 60% Namibian owned corporation, which plans to set up the first gin near Grootfontein. The gin will process long fiber seed cotton purchased from farmers throughout northern Namibia and process this seed cotton into high quality cotton lint. Cottonseed, a byproduct of the ginning process, will be sold back to the farmers for planting in the next season.
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Since Independence, Namibia’s production of cotton has increased markedly and is expected to grow to 15,000 tonnes by 2004. Currently, all of this production is exported to South Africa where it is ginned into cotton lint that is then sold to textile mills there and elsewhere. Namibian farmers then purchase their cottonseed for the next year’s crop from those cotton gins. This has two potential exposures for Namibia. First, the country is losing out on the value added contribution of the ginning process and, second, Namibia has no control over the quality of seeds made available from South Africa.
The joint venture deal requires 30% shareholding by Namibian farmers and US$500,000-700,000 to be spent on training and technical assistance to be provided to more than 1000 participating communal farmers, and includes a provision that 3% of profits will go into a communal trust for scholarships and community development activities.
Global Technology Network (GTN) provided support in identifying the Namibian company’s business needs and then provided trade leads through their GTN system. It also provided a GTN Travel Grant in order for the two companies to meet, as well as facilitated the JV negotiations.
USAID/Namibia is involved in setting up national consultative workshops with various stakeholders in the project. The African Development Foundation has expressed interest in funding related grassroots community development with a grant of up to US$200,000. The U.S. Embassy Economic/Commercial Section in Namibia provided advice and counseling to the U.S. partner, Chihuahua Cotton & Cattle, Inc. |
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 JUNIOR ACHIEVEMENT - 2001/10/16
USAID/Namibia, under a partnership agreement with the Ministries of Higher Education, Training and Employment Creation and Trade and Industry, signed on September 26 a US$ 1 million Cooperative Agreement with Junior Achievement International to establish a chapter in Namibia to be called Junior Achievement Namibia (JAN). |
This program will strengthen Namibian vocational education programs and, in addition, introduce activities that develop entrepreneurial skills and attitudes among youth. Support is to be provided to Namibian institutions serving youth, particularly in rural areas. School-going as well as out-of-school youth will be provided opportunities to start and manage their own businesses, and in the process acquire vital hands-on business management skills.
Junior Achievement Namibia will be marketed to the private sector as a program that will cultivate entrepreneurs and groom business executives for tomorrow. So, although the program will initially be funded by USAID, it will be designed in such a way that the private sector will provide the bulk of the funding from the third year of implementation. The Government of Namibia’s contribution will be mainly through in-kind contributions.
The Junior Achievement (JA) model educates and inspires young people to value free enterprise, business, and economics to improve the quality of their lives. The mission of JAN will therefore be to ensure that every child in Namibia has a fundamental understanding of the free enterprise system. The JA model has key programs that span grades K-12, with age-appropriate curricula designed to teach elementary students about their roles as individuals, workers, and consumers and to prepare middle grade and high school students for key economic and workforce issues they will face. In addition to bringing the free enterprise system to life in the classroom, Junior Achievement programs teach young people the importance of staying in school. Junior Achievement International reaches more than 5.75 million students each year in 113 countries and has chapters in Botswana, South Africa and Zambia. |
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 FIRST VENTURE CAPITAL SEMINAR IN NAMIBIA - 2001/06/18
USAID/Namibia, in partnership with USAID/Washington`s Office of Credit and Investment, hosted a two-day Southern African regional seminar on Venture Capital for Small and Medium Enterprises (SMEs) in Windhoek, May 30-31, 2001. |
| The Seminar, officially opened by the Minister of Trade and Industry, Hon. Hidipo Hamutenya and USAID/Namibia Director, Diana Swain, was well attended by representatives from the private sector, government, donor agencies and NGOs from Namibia, South Africa, Botswana and Zambia. According to the seminar presenter and facilitator, Tom Gibson, of the Washington DC-based Institute of SME Finance, venture capital is an important financing instrument for new, attractive and innovative businesses, particularly in the SME sector, as it brings both financial and management resources, skills and expertise which the entrepreneur may otherwise not posses or access from the normal commercial banking sector. One of the important lessons learned from the seminar is the understanding of the role of government and private equity fund institutions in the establishment of venture capital funds. It was noted that venture capital industries flourish more and succeed if government puts up the initial support (puts up own money at risk) and this is then used to leverage private monies, thereby making investment more attractive for the private sector. The feedback received from the seminar participants has been positive. We hope that a discussion on venture capital in Namibia will continue between government and the private sector and, beyond that, lead to the establishment of a venture capital industry to benefit the SME sector in Namibia. Our thanks to local co-sponsors: Bank Windhoek, NIB-Namibia and the Institute of Bankers. |
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