The Seed Capital Fund of Namibia (SCFN), a non-governmental organisation dedicated to providing essential seed capital to Namibian start-ups, recently hosted a successful stakeholders engagement in Windhoek. 

The event marked the official launch of the SCFN’s fundraising campaign to raise N$2 million by March 2025, aimed at supporting Namibian entrepreneurs, and driving sustainable economic growth.

Founded in 2018, initially as the Namibia Investment Fund, the SCFN stated that it addresses the critical funding gap faced by early-stage businesses in Namibia. 

Since its inception, the fund has raised over N$380 000 through donations from individuals and institutions, both locally and globally. 

The fund seeks to significantly scale up its impact with this new campaign, as noted by its founder Protasius Aluvilu.

“It is important to note that the SCFN is not an investment fund, where the beneficiaries stand to gain personal returns on their donations. Rather, the donated funds will provide pre-seed or seed capital to Namibian startups. The donors are expected to donate preferably N$200 or more at whatever frequency they can consistently commit to. 

“We have witnessed the fund grow, proving that the donation model works. However, for it to be substantially meaningful to the Namibian startup ecosystem, donations need to reach at least N$1 million per year and more,” he said.

In a statement, the SCFN noted that it is a symbol of hope for Namibian entrepreneurs eager to unleash their entrepreneurial spirit but are often hindered by financial constraints and mentorship.

 “By providing much-needed seed capital to start-ups and innovative groups, this initiative will empower entrepreneurs to turn their innovative ideas into sustainable businesses, and contribute to job-creation and economic prosperity,” the fund stated.  

It continued that one of its key objectives is to strengthen the empowerment narrative among Namibian business-minded individuals and entrepreneurs to evolve their initiatives until they become economically-viable. 

This will be achieved by offering “patient cash” and mentorship opportunities, thus fostering a culture of entrepreneurship and instilling confidence and self-reliance into the entrepreneurs, paving the way for a higher success rate.

Moreover, the SCFN it serves as a remedy to the employment struggles faced by many Namibians. 

“With traditional job opportunities becoming increasingly limited, entrepreneurship presents a workable alternative for those seeking to chart their path. By investing in these businesses, the fund therefore aims to facilitate new avenues for employment and economic participation, reducing dependence on traditional job markets,” the fund stated. 

Some of these targeted sectors include innovative technologies, agriculture, manufacturing, creative industries, green innovations and fintech.

“The SCFN will employ a strict selection process to identify and support deserving beneficiaries who demonstrate innovative ideas and potential for growth. A team of experienced professionals, including members of the SCF board and external advisors, will review all submitted applications. 

“They will assess each proposal based on predetermined criteria, such as feasibility, scalability, innovation, market potential, social impact and alignment with the Fund’s objectives. This process aims to shortlist entrepreneurs who will pitch their ideas for final selection fund allocation,” Aluvilu added.

The fund further stated that it has the opportunity to become a leading force by reshaping the traditional understanding of seed funding, as well as its role in driving innovation and economic growth. 

“Unlike conventional approaches to seed funding, which often focus solely on financial support, the SCFN adopts a comprehensive approach that covers mentorship, networking and capacity-building. This holistic thinking not only provides crucial funding to start-ups and innovative ideas, but also provides entrepreneurs with the tools, resources and support they need to survive and thrive in the competitive business environment,” the statement added.