NIPDB, World Bank Group join forces to tackle MSMEs financing challenges
The Namibia Investment Promotion and Development Board (NIPDB) and the World Bank Group have successfully concluded the Chelete Cage pitch event, providing a crucial platform for innovative start-ups and micro, small, and medium enterprises (MSMEs) to raise funds and meet their capital needs.The initiative, held recently in Windhoek, marks a significant milestone in the Namibian Government's efforts to address the persistent challenge of access to finance that MSMEs face in Namibia.
Chelete Cage provided eight investment-ready Namibian MSMEs in the food processing, cosmetics and manufacturing, tech and logistics industries with an opportunity to pitch their business concepts for a capital amount of N$30 000, N$20 000 and N$10 000 for their businesses. Additionally, the MSMEs were offered access to non-monetary support, including guidance on how to approach potential investors and tips on perfecting their pitch.
The project aims to empower MSMEs and encourage them to take a critical look at their business models, market positioning, and growth potential. Through this process, they can identify areas for improvement and refine their approach, to ultimately expand and scale their operations.
The pitching MSMEs were selected from the Know2Grow High Potential Pool (K2G HPP), a specialised program designed by the NIPDB to assist MSMEs with high potential to export their products.
K2G HPP provides an array of export-focused capacity-building and market access opportunities for Namibian MSMEs, including initiatives such as Chelete Cage that aim to unlock access to finance opportunities that will enable businesses to expand their businesses and export their products into larger domestic and international markets.
Winners
• Ndaka Mushrooms & Processing by Abner Tomas, awarded the first prize of N$ 30 000. Ndaka Mushrooms and Processing CC is a company that specialises in sustainable mushroom farming and processing, offering fresh organic mushrooms, grow kits, spawns, and short-term training on mushroom cultivation.
• Ilotu Investment CC by Mareka Masule, awarded the second prize of N$ 20 000. Ilotu is a Namibian-owned company that produces organic and natural cosmetics and offers fitness and health services to promote holistic well-being.
• K12 Edtech Inc by Loide Dawid, awarded third prize of N$10 000. K12 EdTech is an educational technology company that digitises, streamlines and automates academic and mundane tasks for kindergarten to senior secondary education.
Experience
Speaking about his experience Tomas shared that it was an eye-opening experience that provided a great networking platform. He added that the coaching sessions were helpful for his business. “When I was announced as the winner, I felt grateful and humble. I have used about N$10 000 of my winnings to purchase materials which I'm currently using to build an extra 9m² mushroom fruiting room, so we increase our weekly mushroom production. With the remaining N$20 000, I plan to improve our product standards and obtain necessary certifications with the Namibia Standard Institution (NSI) and the Namibia Agronomic Board (NAB).”
The winners were selected by a panel of independent judges on the following criteria:
- Identification of a clear problem in the market that is being solved
- Feasibility of the business
- Scalability of the business
- Market potential
- Sustainability of the business model
- Traction and Investment potential
- The skills of the team.
Aligned with the NIPDB's mandate to coordinate MSME activities and support their growth and development across all levers of the economy, the initiative recognises the critical role that MSMEs play in driving economic growth and job creation, and the challenges they face in accessing finance to support their operations. Therefore, Chelete Cage is part of the NIPDB’s initiatives to bridge the access to finance gap and help MSMEs grow. The next instalment of Chelete Cage will take place later this year.