NCCI supports SME development through insurance

08 Jul 2016 08:40am
WINDHOEK, 07 JULY (NAMPA) – The Namibia Chamber of Commerce and Industry (NCCI) on Wednesday signed a Memorandum of Agreement with Arch Risk Services (ARS) for the company to provide collateral free insurance to NCCI members with Government tenders, particularly to SMEs.
ARS is to provide assistance to financing, training, construction related guarantees and insurance for NCCI Emerging Contractor (EC) members who are tendering and or have been awarded tenders by Government, State Owned Entities, regional councils and municipalities.
It is a collateral free arrangement available for agreement only between these employers and not private employers.
According to NCCI Chief Executive Officer, Tarah Shaanika, ARS is a member of NCCI and has also been providing financial and risk services to other members of the NCCI who are tendering for or have been awarded tenders by Government.
“We believe that a number of our members, especially those in the SME category, require the services that ARCH Risk Services provide and we thought to bring these services close to our members.
We need to provide this platform where our members are able to solicit these services from ARS,” Shaanika said.
Shaanika further noted that part of the services provided by the NCCI is to link businesses so that some provide services to others that would enable them to grow and to become competitive.
Speaking on behalf of Arch Group of Companies, Executive Chairperson Justus Hausiku explained that apart from providing insurance, they are to partner with clients throughout the process of delivering the tendered services.
“If we are happy with their works program and cash flow statement, then we would award them with a performance guarantee on our facility.
What we will do then is manage with them throughout the project to make sure that the project gets done according to what they offered the client,” said Hausiku.
With membership of 2 500 members, the NCCI is one of the leading business representatives and support organisation in the country.
Hausiku said it is very much spoken of how the Small and Medium Enterprise (SME) sector is the driver of the economy but very little is invested in that sector, adding his company has a goal to focus, not on the perceived risks and challenges, but on the true challenges and risks in the SME sector for it to grow.