Boost for construction
The Namibia Chamber of Commerce and Industry (NCCI) Windhoek branch earlier this week signed a Memorandum of Understanding with Arch Risk Services on Performance Guarantees for Small and Medium Enterprises (SME’s) in the construction industry who are chamber members.
It is intended with this Memorandum of Understanding that services to SMEs in the construction industry will be improved so that they can grow into successful businesses.
Parastus Nepolo, Chairperson of the NCCI Windhoek branch said the MOU will provide access to financing, training, construction related guarantees and insurance for NCCI Emerging Contractor members who are tendering or who have been awarded government tenders. These also apply to tenders for state-owned enterprises, regional councils, local authorities and municipalities. “The collateral-free arrangement can only work for the above mentioned employers and not private employers, but we will look at extending it to the private sector and to other branches of the NCCI in the near future,” he added.
Justus Hausiku, Chairman of Arch Risk Services elaborated that NCCI members will get collateral-free guarantee facilities and advanced payments will be done which will be backed by Advance Payment Guarantees (APG). “Part of the APG conditions is to own an account in the offices of Arch Risk Services and the members’ pre-negotiated prices, payments and credit terms will be backed by surety,” he emphasised.
“We have the technical expertise in the construction industry to provide the necessary best practices for project management, supervision and training with access to financial institutions for the essential services and products required,” concluded Hausiku.