N$2.5 million in grants for entrepreneurs
ELLANIE SMIT
WINDHOEK
A total of 32 entrepreneurs received N$2.5 million worth of funding through the recently launched Sustainable Development Goals Impact Facility (SDGIF).
The CEO of the Environmental Investment Fund (EIF) Namibia, Benedict Libanda, said at this first grant handover that the SDGIF is a multi-stakeholder financial and capacity building platform, which bridges social innovation and blended capital to create sustainable economic and social returns.
He said the grant handover ceremony follows the first of three calls for proposals which will be issued during the first phase of the SDGIF. The current window focuses on companies in agriculture, nutraceuticals and artisans. The second window will focus on manufacturing and sustainable tourism and the third will focus on renewable energy and IT, which will be launched in March and July respectively.
Dr Armstrong Alexis, deputy resident representative for the United Nations Development Programme (UNDP), spoke about the importance of micro, small and medium-sized enterprises (MSMEs) and the significant role they play in the attainment of the Sustainable Development Goals (SDGs), especially in the areas of ending poverty and reducing inequality.
“The SDGIF has a resource base of N$8 million that can be accessed by entrepreneurs with sustainable, environmentally friendly business ideas.”
Alexis said it is anticipated that the facility will support between 100 and 120 businesses.
He said the SDGIF will offer grants to MSMEs that cannot meet the requirements of lending institutions, but will also support those that show promise and can secure loans.
Two tiers
“This two-tier system is deliberately designed to leave no one behind.”
According to him in Tier One, successful MSMES will receive a one-off, limited duration grant, typically covering up to 50% of project costs (or up to N$650 000 as appropriate) with the remainder to be matched by the entrepreneur's own contribution or a loan from a financial institution.
In Tier Two, vulnerable MSMEs that are unable to secure a loan will receive a one-off, limited duration grant, usually covering up to 90% of project costs (or up to N$50 000 as appropriate) with the remaining 10% to be matched by the entrepreneur's own in-kind contribution.
During the call for proposal for window 1 the facility received over 150 proposals from Tier 1 and Tier 2.
From the 150 grant applications, the committee approved 6 Tier 1 grants totalling N$1.8 million and 26 Tier 2 grant applications consisting of formal and informal sector operators and totalling N$750 000.
“It is important to note that 50% of Tier 1 grant awardees are female and 66% young people. The leading economic sector that received the most grant applications under Tier 1 was the agriculture sector followed by artisans and nutraceuticals,” said Alexis.
Under Tier 2, 65% of the awardees are female and 85% Youth. The leading economic sector that received the most grant applications under Tier 2 came from the artisans' sector followed by agriculture.
The SDGIF was created in partnership with the trade ministry and UND Namibia and supported by the finance partner Standard Bank Namibia and grant facility manager EIF.
The grant funding is provided by UNDP and it is intended to incentivize financial institutions to provide affordable long-term loans so that funding becomes more easily available to enterprises. The SDG Impact Facility is coupled with business development support services offered by Empretec Namibia under the trade ministry.
WINDHOEK
A total of 32 entrepreneurs received N$2.5 million worth of funding through the recently launched Sustainable Development Goals Impact Facility (SDGIF).
The CEO of the Environmental Investment Fund (EIF) Namibia, Benedict Libanda, said at this first grant handover that the SDGIF is a multi-stakeholder financial and capacity building platform, which bridges social innovation and blended capital to create sustainable economic and social returns.
He said the grant handover ceremony follows the first of three calls for proposals which will be issued during the first phase of the SDGIF. The current window focuses on companies in agriculture, nutraceuticals and artisans. The second window will focus on manufacturing and sustainable tourism and the third will focus on renewable energy and IT, which will be launched in March and July respectively.
Dr Armstrong Alexis, deputy resident representative for the United Nations Development Programme (UNDP), spoke about the importance of micro, small and medium-sized enterprises (MSMEs) and the significant role they play in the attainment of the Sustainable Development Goals (SDGs), especially in the areas of ending poverty and reducing inequality.
“The SDGIF has a resource base of N$8 million that can be accessed by entrepreneurs with sustainable, environmentally friendly business ideas.”
Alexis said it is anticipated that the facility will support between 100 and 120 businesses.
He said the SDGIF will offer grants to MSMEs that cannot meet the requirements of lending institutions, but will also support those that show promise and can secure loans.
Two tiers
“This two-tier system is deliberately designed to leave no one behind.”
According to him in Tier One, successful MSMES will receive a one-off, limited duration grant, typically covering up to 50% of project costs (or up to N$650 000 as appropriate) with the remainder to be matched by the entrepreneur's own contribution or a loan from a financial institution.
In Tier Two, vulnerable MSMEs that are unable to secure a loan will receive a one-off, limited duration grant, usually covering up to 90% of project costs (or up to N$50 000 as appropriate) with the remaining 10% to be matched by the entrepreneur's own in-kind contribution.
During the call for proposal for window 1 the facility received over 150 proposals from Tier 1 and Tier 2.
From the 150 grant applications, the committee approved 6 Tier 1 grants totalling N$1.8 million and 26 Tier 2 grant applications consisting of formal and informal sector operators and totalling N$750 000.
“It is important to note that 50% of Tier 1 grant awardees are female and 66% young people. The leading economic sector that received the most grant applications under Tier 1 was the agriculture sector followed by artisans and nutraceuticals,” said Alexis.
Under Tier 2, 65% of the awardees are female and 85% Youth. The leading economic sector that received the most grant applications under Tier 2 came from the artisans' sector followed by agriculture.
The SDGIF was created in partnership with the trade ministry and UND Namibia and supported by the finance partner Standard Bank Namibia and grant facility manager EIF.
The grant funding is provided by UNDP and it is intended to incentivize financial institutions to provide affordable long-term loans so that funding becomes more easily available to enterprises. The SDG Impact Facility is coupled with business development support services offered by Empretec Namibia under the trade ministry.
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