WINDHOEK – In an effort to ensure continuous effectiveness, the Ministry of Trade and Industry, in partnership with the Bank of Namibia, will be reviewing the country’s existing small and medium enterprise (SME) policy and programmes.
According to Minister of Trade and Industry, Calle Schlettwein, shortcomings in the current SME policy include the fact that the current definition of SMEs is too narrow and not inclusive enough of all small business categories that exist in the Namibian economy.
During the launch of the review and a new SME website on Monday, Schlettwein explained that there is also a need for a single or common definition or classification of the various categories of small businesses in the country and the corresponding requisite interventions.
Schlettwein said the current SME policy has also not provided for proper coordination and a monitoring and evaluation mechanism. “As a result, there is multiple and often duplicating SME support initiatives being carried out by various institutions, in government, the private sector and among donors, in an uncoordinated manner. It is my wish to see more synergy and an integrated approach as required under NDP 4 (National Development Plan 4) and our industrial policy to reduce overlaps and wastage of resources,” said Schlettwein.
The review will be spearheaded by a technical ream consisting of technical members from the Ministry of Trade and Industry, other relevant ministries, agencies and the Bank of Namibia assisted by a technical expert. The review is expected to catalogue all shortcomings in the existing SME policy.
“Poverty and unemployment are two of the most serious problems faced by developing countries, including Namibia. Nations, both developed and developing, have come to accept the role of small and medium size industries … as a useful vehicle for creating employment opportunities and self-help economic activities as viable ways of reducing poverty and for bringing about sustained economic growth, a fair distribution of income and wealth and social harmony,” added Schlettwein.
The minister emphasised that SME development is crucial for employment generation, the mobilisation of resources and entrepreneurial skill and can ensure the equitable distribution of income and wealth. “The fourth aspect is that small-scale businesses can help bring about a regional dispersal of industries and balanced development. It is common knowledge that our country is characterized by a massive concentration of industries in the urban centres, and people often migrate from rural and semi-urban areas to the developed urban centres in search of employment and sometimes to earn a better living, which ultimately leads to many undesirable consequences such as over-crowding and creation of slums. This problem, I believe, can be tackled by creating opportunities for small-scale industries in all parts of the country including rural areas that utilise local resources. This will bring about dispersion of industries and promote balanced regional development”, explained Schlettwein.
The minister said SMEs can also support the growth of large industries by providing, components, accessories and semi-finished goods required by them, if the right linkages are developed.
By Edgar Brandt