Private equity and venture capital for SMEs in demand
The Deputy Minister of Trade and Industry, Hon Tjekero Tweya, represented by Nghidinua Daniel, Deputy Permanent Secretary, launched the findings of a research study entitled: “Assessing market demand for private equity and venture capital for emerging small- and medium-sized enterprises in Namibia” at a breakfast function held in Windhoek on 27 February 2013.
The in-depth market analysis was a joint research project commissioned by Business Financial Solutions (BFS) and supported by its project partners: Bank Windhoek, The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Government and the Global Compact Network Namibia (GCNN), with the support of the Namibian Employers Federation. The study was conducted by an economist, Mr Robin Sherbourne on behalf of the partners. Research findings were however presented by Mr Graham Hopwood, Director of Institute of Public Policy and Research, to various stakeholders in the financial sector.
The study included a desk review and expert interviews to investigate the policy and regulatory environment, the current market offering and the existing private equity and venture capital models in Namibia. Secondly, a survey in which 100 businesses throughout the country were interviewed was conducted to assess the demand for private equity and venture capital for SMEs in Namibia. The research findings suggest that there are good grounds for assuming that a demand for such finance exists in Namibia. “Traditionally, private equity and venture capital finance are supposed to be the critical components of any financial sector since they provide skills development and support business ventures to develop which would generally be too risky for commercial banks to support. I urge private financial institutions to consider investing in our local SMEs”, read the statement of Hon. Tjekero Tweya, delivered by Nghidinua Daniel, Deputy Permanent Secretary of the Ministry of Trade and Industry.
Kauna Ndilula, Managing Director of Business Financial Solutions (BFS) said, “As a small player in the financial market, BFS is committed to the development of the financial market in Namibia and continues to play a catalytic role. BFS however recognises the fact that it cannot have the desired impact on its own and as such strives to work with like-minded and pioneering stakeholders such as GIZ, Global Compact and Bank Windhoek, institutions that have made significant contributions in SME development territory in their own right. Similarly, in understanding the needs for alternative finance to SMEs, BFS commissioned the study on equity finance for emerging enterprises and profoundly appreciate the support by Bank Windhoek and GIZ and Global Compact Network to co-finance this study”.
The partners will share the key findings and data with Namibia Financial Institution Supervisory Authority, the Bank of Namibia, the general public and other stakeholders in order to support the financial inclusion initiatives of Government and the Bank of Namibia.