The Namibian ministry of industries, mines and energy has approved 70 micro, small and medium enterprises (MSMEs) for equipment aid under the Equipment Aid Scheme (EAS) for the 2024/25 financial year. A total of 1,564 applications were submitted, but only a small fraction were successful. The EAS provides production machinery and equipment to MSMEs to increase production capacity, improve product quality and competitiveness, create jobs and contribute to national economic growth.
The Industrial Upgrading Modernisation Programme (IUMP) for the 2025/26 financial year has also seen a low approval rate. Out of 461 applications received, only 36 were approved, with assistance amounting to N$3.2 million. The programme targets existing medium-level enterprises to improve productivity and competitiveness in local and international markets. Support includes production equipment, training, branding, packaging and assistance with meeting standards and improving access to markets.
The IUMP was developed from a Southern African Development Community-wide initiative. The programme aims to support MSMEs in improving their operations and accessing new markets. The low approval rate has raised concerns about the accessibility of funding for MSMEs in Namibia. The ministry has not provided reasons for the low approval rate, but it is expected to provide more information in the future.
The ministry is implementing several projects to provide operating space and support services for businesses across the country. One of the completed projects is the Opuwo Industrial Park, which has tenants, including MSMEs. The facility has been fully occupied, with retention fees for the project having been paid. This project is expected to support the growth of MSMEs in the region.
Other industrial parks are under development, including the Tsumeb Industrial Park, which also aims to provide operating space for MSMEs. The retention fees for the project have been paid, and the facility is expected to be operational soon. The Omaruru Trade and Industrial Park is 80% complete and is expected to provide operating space for MSMEs, alongside a tourism and fuel centre and support services.
Renovations are also underway at several business parks, including the Epako SME Park, which is 80% complete. The project is expected to be completed in the next financial year. At the !Nara Namib Industrial Park, bulk sewer works and water reticulation have commenced and are about 50% complete. The works are expected to be finalised in the next financial year.
The ministry is also upgrading the Biomass Park under the Global Accelerator Programme. The project aims to demonstrate the commercial production of animal feed, packaged charcoal and char from the utilisation of Namibia's extensive invader bush resources. This project is expected to create new opportunities for MSMEs in the biomass sector.
Key points
- Only 70 out of 1,564 MSME applications were approved for equipment aid under the Equipment Aid Scheme for 2024/25.
- The Industrial Upgrading Modernisation Programme approved 36 applications out of 461 received, with assistance amounting to N$3.2 million.
- The ministry is developing several industrial parks and business parks to provide operating space and support services for MSMEs across the country.
