SMEs Economic Growth
SMEs for Economic Growth & Job Creation
The Rössing Foundation is aware of the fact that the SMEs are the engine for our economic growth. Currently, the Rössing Foundation's Enterprises development programme empowers both the existing and emerging Namibian Small and Medium Enterprises in the form of businesses advices, training and mentoring. The overall goal of the Rössing Foundation engagement in Enterprise Development is to develop identified enterprises in order to enter the main stream of the Namibian economy; hence it is committed to support the Erongo Development Foundation-Erongo Micro Credit programme.
One of the well known challenge facing Small and Medium Enterprises and upcoming entrepreneurs in Erongo Region and Namibia is access to credit in order to expand their business operation as they do not have collateral, hence the Rössing Foundation is currently supporting the Erongo Micro Credit scheme through a guarantee Fund that is managed by Bank Windhoek. The mentioned fund was set up as a response to the need of SMEs in Erongo region. Since 2008, the fund has supported 49 SMEs to access loans with a repayment rate of above 95%.
During the year 2012, the Fund is supporting 68 Erongo SMEs to access loans from Bank Windhoek amounting to N$ 990, 500. On 19 July 2012, 70 SMEs from Erongo Region have gathered in Swakopmund to sign off their loans with Bank Windhoek as well as to receive their certificates for successfully completing the Business management training. Ten (10) SMEs that performed very well during the initial loan phase that ended last year (2011) were rewarded for their ability to grow their businesses as well as for timely repayment of their loans. These 10 SME have also now qualified for bigger loans from Bank Windhoek' SME's loans products. It is therefore certain that the guarantee fund has successfully built up SMEs to gain credit worthiness and trust. The majority of the beneficiaries are women.