Tsumeb
The Namibia Chamber of Commerce and Industry’s (NCCI) Tsumeb branch is on the brink of closure as membership has drastically declined to a mere 20 paid-up members.
If membership falls below 15 members the branch will have to close, as stipulated in the chamber regulations.
The branch, which won an award three years back for being the most improved branch in coining members, is now in dire straits financially whereby it is unable to operate efficiently.
In fact, the local chamber has been limping along since the Tsumeb Municipality’s withdrawal of its funding a few years back and it only somewhat got back on its feet when Dundee Precious Metals intervened through its Community Trust Fund.
Despite Dundee’s lump sum pay-outs as a member, NCCI Tsumeb still struggles as its money is mostly invested in boosting small and medium enterprises (SMEs) and it eventually ends up with nothing much in its coffers.
NCCI members are obligated to pay an annual fee of N$460 while grant recipients pay 10 percent back, but this has not been the case. This was brought to light on Tuesday at the annual general meeting.
The local chamber’s 2015 financial report for January to December indicates that its opening balance was N$8 775.95 and it only had income when Dundee paid a grant of N$825 000 followed by a 10 percent repayment of N$2 000 from grant recipients.
Other sources of income for the local chamber included a sponsorship of N$6 732, Dundee membership fee of N$65 000, N$1 600 raised from a gala dinner and bank interest of N$475, bringing the total to N$993 517.31 with expenses which stood at N$869 846.89.
The branch closed with a cash amount of N$132 446.37. However the first quarter for 2016 financial report projects a cash deficit.
According to NCCI Executive Committee member, representing Dundee, Andre Struwig, who presented the report, since January NCCI generated N$7 370 from the 10 percent repayment and N$7 765 from members and an additional N$70 000 from Dundee membership. Meanwhile expenses stood at N$177 922.62, which leaves cash of N$40 098.15.
Struwig further stated that the amount is likely to fall into the red if they happen to pay an amount ranging from N$60 000 to N$65 000 to NCCI head office. This means NCCI Tsumeb branch will incur a cash deficit of N$24 901.85.
“That’s the only money which NCCI has now to use for operations until the end of the year but from the look of things this will not take us anywhere. The institution will eventually close if nothing is done,” stressed Struwig.
He emphasised that the system on which the NCCI has been running should change, while highlighting that he has taken the initiative to do a monthly record-keeping to keep finances on track.
Struwig noted with great concern that most of the grant recipients are doing well for their own pockets instead of investing in the growth of their businesses in order to pay back. The 10 percent repayment is done over two years.