New SME fund from Bidvest
Deputy Minister of Trade and Industry, Hon. Tjekero Tweya heaped praises on Bidvest Namibia’s executive management at the launch of its development fund geared to small and medium enterprises. Launching the N$20 million fund earlier in the week in the capital, Tweya was pleased to note that the private sector heeded government’s call to spur economic growth and development. Said Tweya “I want to applaud Bidvest Namibia’s initiative in supporting Small and Medium Enterprises. Bidvest Namibia’s success stems from its perseverance in pursuing growth through innovation. I am pleased to see that Bidvest Namibia has heeded government’s call for the private sector to partner with government in the major area of national development.” According to Tweya, a report released in 2005 by his ministry found that small and medium enterprises accounted for about 20% of employment and contributed 12% of gross domestic product.
He said “At present, I am quite sure that the small and medium enterprise contribution has increased, due to the fact that numerous interventions have been made to facilitate their success.” Tweya believes that the fund can grow substantially to N$80 million per annum, based solely on the positive effect the multiplier will have on the fund. He said, “The fund can be turned around four times a year and because of the multiplier effect it could equate to a N$80 million facility per year.” Bidvest Namibia Holdings CEO Sebby Kankondi described the fund as a two-dimensional growth mechanism. He said, “Bidvest Namibia remains committed to offering high quality products and services that stimulate mutual benefits for growth.” The Bidvest Namibia Enterprise Development fund will be administered by the Namibia Procurement Fund’s (NamProfund) administrators, and Business Financial Solutions (BFS). Prospective small and medium enterprises are urged to apply for funding. To qualify, SMEs must produce a tender contract that was awarded to them by a large organisation. A further condition is that SMEs must use the loan to buy the supplies needed for the tender from any of the participating Bidvest Namibia entities. The participating entities include Waltons Namibia, Voltex Namibia, Bidvest Namibia Steiner, Kolok Namibia, Konica Minolta and Cecil Nurse.