18 May 2017 18:40pm
WINDHOEK, 18 MAY (NAMPA) The Parliamentary Standing Committee on Economic and Public Administration will hold public hearings on the government payment system from next Monday.
The public hearings follow a motion by Member of Parliament (MP), Mike Kavekotora in the National Assembly in June last year on making the government payment system conducive to business and Small and Medium Enterprises (SME) promotion.
In his motion, Kavekotora noted with concern that SMEs face challenges that range from a lack of finance, skills, training and experience in running a business to financial knowledge, market research and lack of collateral, as well as late payment of invoices by government.
Whilst the Ministry of Industrialisation, Trade and SME Development has been providing a range of services in support of SME promotion, the government is making the operations of businesses in general and SMEs in particular difficult due to payment of invoices taking a long time, up to six months or even more, he stated.
Kavekotora said access to financing and a more robust procurement system could lead to more SMEs gaining better growth potential.
Over 33 700 SMEs registered under the Ministry of Industrialisation, Trade and SME Development are operating in the country, catering for 160 000 employees.
Kavekotora told the House it was important for lawmakers to address this issue to find solutions that would grow the economy through SME development, whilst preventing corruption by making the enterprises part of government institutions.
The hearings will be held in the Erongo, Otjozondjupa, //Kharas, Oshana, Kavango East, Kavango West and Oshikoto regions.