KATIMA MULILO – There is discontent among SMEs in the Zambezi Region that they do not benefit from development projects in the region.
This sentiment was expressed during a meeting held between the Namibia Chamber of Commerce and Industry (NCCI) Zambezi Branch and its members on Thursday.
The meeting was aimed at identifying challenges faced by SMEs, as well as reviewing the SME policy and making recommendations.
Local business people felt big companies particularly those into construction are often awarded tenders and in turn do not subcontract some of the work to local SMEs.
“We don’t know what is happening in this region. In other regions, regional councils and the town council take care of their people by awarding them tenders and making sure that they get subcontracted work but here it is not the case. When they give tenders to a local they give to the same person over and over,” complained one local SME.
However, Cletius Mubita from the Zambezi Regional Council who formed part of the meeting noted that the regional council has tried to empower SMEs through annual tenders and other jobs.
He however stated that the budget for annual tenders is limited and this results in some of the SMEs not profiting from these tenders.
“We have tried our level best at the regional council to empower our SMEs. We have an annual tender and so far we have about 59 companies. This tender comes out yearly and we make sure that we give work to SMEs based on whether they qualify. However our budget is very limited,” explained Mubita.
On concerns SMEs from outside the region were benefitting at the expense of locals, he said every Namibian qualifies for a tender in any part of the country, and therefore it depends on the competences of companies bidding for tenders.
“Namibia is a unitary state. Coming from Oshakati does not mean you cannot get a tender in Zambezi. But sometimes we have what we call closed tenders that are targeted for locals. A lot of business people here have benefitted,” he said.
The Katima Mulilo Town Council was not available for comment.
According to the NCCI Zambezi Branch Chairperson Ace Mutelo one of the pertinent issues the NCCI was looking to address is the SME policy formulated in 1997 that requires a review.
“Apart from looking at the challenges faced by our members we are required to look at the SME policy and make recommendations. It talks about who qualifies for SME status and the incentives thereof and since it was formulated in 1997, we would want it to address our present situation,” stated Mutelo.
He noted as part of addressing the needs of its members the NCCI invited relevant government institutions to make presentations.
“We have invited government institutions such as the regional council, the Ministry of Trade and Industry, the Ministry of Finance and the town council to make presentations. We are also looking at approving a strategic plan at the end of the meeting,” Mutelo informed New Era.
According to Mutelo NCCI membership in the region has grown tremendously attesting to the renewed commitment from local business people.
“In the past we had challenges with membership but that has changed. The number has increased and we have old members renewing their membership. Those that are not part of the NCCI are losing out and we call on them to register immediately,” urged Mutelo.
At one of its meetings last year, the NCCI Zambezi Branch identified concerns such as lack of financing, financial skills and management and collateral as some of the biggest obstacles.