Micro financing scheme empowers rural SMEs

28 Aug 2014 09:50am
SWAKOPMUND, 28 AUG (NAMPA) – Twelve Small and Medium-sized Enterprises (SMEs) from some rural parts of the Erongo Region have received N.dollars 50 000 each to grow their businesses in order to help alleviate poverty in their areas.
The supported projects are involved in gardening, gemstone mining, woodwork, needlework, pottery, tailoring and brick-making.
The beneficiaries included businesses like Opstal Gardening, Kondja Mining Investment, the Kuiseb River Brick project and Khaibasen Tailoring
Representatives of the 12 businesses travelled to Karibib last Friday, where they received confirmation letters from Erongo Regional Council Chairperson Hafeni Ndemula, proving that they have indeed qualified to receive the finances.
The funds have been sourced from the national micro-financing scheme run by the Ministry of Regional, Local Government, Housing and Rural Development (MRLGHRD), which gives a certain amount to Regional Councils every year to support rural development.
The Rural Development Officer at the Erongo Regional Council Siegfried Neshuku, who is tasked with the implementation of the micro-financing scheme in that area, told Nampa in an interview on Wednesday that the beneficiaries are from small villages and settlements such Otjimbingwe, Uis and Okombahe.
N.dollars 45 000 of the full amount will not be paid out to beneficiaries in cash, but will be used to buy equipment based on the business proposals submitted.
The remaining N.dollars 5 000 will be deposited into the various business accounts to serve as start-up capital.
“There is no funding for businesses such as shebeens because those sort of businesses lead to community decay. Only projects with a community interest and with the ability to alleviate poverty have been considered,” he explained.