Purpose-eating allocation for trade
Ndama Nakashole - There are no funds allocated towards the government’s equipment aid scheme this year, whose aim is to provide production machinery and equipment to needy SME operators.
The minister of trade, industrialisation and SME development, Tjekero Tweya, this week described the non-allocation of funds to his ministry’s equipment aid scheme for SMEs as “a pity to destroy the gain” derived from this scheme.
Motivating his ministry’s N$347.7 million budget in parliament on Wednesday, Tweya said the equipment aid scheme, which was allocated N$3 million in 2017/18 managed derived success stories. Among them is assisting five entrepreneurs with production in sectors of hair production, fashion design, meat processing, automotive servicing and youth in tourism projects.
“Since inception, the [equipment aid] scheme has helped to sustain and create new jobs in the budding SME sector,” he said.
Dysfunctional
Tweya’s ministry’s overall budget was cut by about 40%. In the development budget estimates for this year, Tweya said there were no allocations in “very critical” areas of the ministry, including support services to SMEs. He further said there is no provision to all commercial offices and SMEs resorting under the ministry.
“This state of affairs will undoubtedly lead to [a] dysfunctional ministry, SOEs and commercial offices,” he said.
SME victory
Tweya said that his ministry, trough the implementing agency, the Namibia Development Corporation (NDC), has to date constructed over 49 SME and industrial parks throughout the country. These business parks accommodate 676 business operators. These operators, according to Tweya, have created jobs for over 5 000 people on a permanent basis and during the construction of these parks, over 7 000 jobs were created.
“It is evident that the costs of acquiring business premises have increased over the years and though SMEs are regarded to be the main drivers of wealth creation, funding institutions are reluctant to lend to them,” he said.
He said this led to the demand for operating space to increase dramatically, and Tweya said the ministry is in the process of constructing additional parks countrywide.
The minister of trade, industrialisation and SME development, Tjekero Tweya, this week described the non-allocation of funds to his ministry’s equipment aid scheme for SMEs as “a pity to destroy the gain” derived from this scheme.
Motivating his ministry’s N$347.7 million budget in parliament on Wednesday, Tweya said the equipment aid scheme, which was allocated N$3 million in 2017/18 managed derived success stories. Among them is assisting five entrepreneurs with production in sectors of hair production, fashion design, meat processing, automotive servicing and youth in tourism projects.
“Since inception, the [equipment aid] scheme has helped to sustain and create new jobs in the budding SME sector,” he said.
Dysfunctional
Tweya’s ministry’s overall budget was cut by about 40%. In the development budget estimates for this year, Tweya said there were no allocations in “very critical” areas of the ministry, including support services to SMEs. He further said there is no provision to all commercial offices and SMEs resorting under the ministry.
“This state of affairs will undoubtedly lead to [a] dysfunctional ministry, SOEs and commercial offices,” he said.
SME victory
Tweya said that his ministry, trough the implementing agency, the Namibia Development Corporation (NDC), has to date constructed over 49 SME and industrial parks throughout the country. These business parks accommodate 676 business operators. These operators, according to Tweya, have created jobs for over 5 000 people on a permanent basis and during the construction of these parks, over 7 000 jobs were created.
“It is evident that the costs of acquiring business premises have increased over the years and though SMEs are regarded to be the main drivers of wealth creation, funding institutions are reluctant to lend to them,” he said.
He said this led to the demand for operating space to increase dramatically, and Tweya said the ministry is in the process of constructing additional parks countrywide.
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