Thesis (MPA)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: In 1997, the Government of the Republic of Namibia launched the Policy and Programme for Small Business Development. The Ministry of Trade and Industry at the time was assigned the responsibility, together with several different stakeholders, to implement this policy. The launch of such a programme was a step taken to recognise the importance of the small and medium enterprise (SME) sector in local economic development (LED). The core of LED transformation and the implementation of any local authority is the creation of the private sector - a primary source of development – and support of the SME sector in particular. SMEs are considered one of the main driving forces in LED. The current study, which was conducted within Oshakati Town, attempted to study the role of SMEs in the LED sector and what challenges are hampering the SME sector to participate fully and to make a serious contribution towards LED implementation at the local authority level. The study considers to what extent the Namibian government and local government policies supports the SME sector development and contributes to LED and assessed issues regarding the sustainability of the measures engaged in by the government, and especially by the local government. Further, the researcher also attempted to determine how the SME sector in Namibia has responded to the LED implementation that regards SME development as the key to social and economic development through reducing poverty and increasing employment opportunities. The findings of the study indicates that, despite the nationally recognised importance of the SME sector in terms of LED, the sector still faces major challenges in regional and local government. The challenges of business entry (start-up capital), survival and growth are often substantial. The availability of financial resources and the lack of capacity to handle complex business management issues, as well as business premises also regarding the price of business land are all important in this regard. There is a continuous need to improve and maintain the required elements that bring about a good enterprises climate. / AFRIKAANSE OPSOMMING: Die regering van die Republiek van Namibië het in 1997 die Beleid en Program vir Kleinsakeontwikkeling bekend gestel. Die destydse Ministerie van Handel en Nywerheid is saam met etlike verskillende belanghebbendes met die praktiese inwerkingstelling daarvan belas. Met dié beleidstuk het die regering oënskynlik ’n tree nader gekom aan die erkenning van die belang van die klein-en-middelslagonderneming- (KMO-)sektor in plaaslike ekonomiese ontwikkeling (PEO). Die grondslag van PEO-transformasie en die suksesvolle funksionering van enige plaaslike owerheid is die koestering van die privaat sektor – synde ’n vername bron van ontwikkeling – sowel as steun vir die KMO-sektor in die besonder. KMO’s is bekend as een van die hoofdryfkragte agter PEO. Hierdie studie, wat in Oshakati onderneem is, ondersoek die rol van KMO’s in PEO, en die uitdagings waarvoor die KMO-sektor te staan kom om as volwaardige deelnemer aan die ekonomie ’n werklike bydrae tot PEO-inwerkingstelling op plaaslikeregeringsvlak te lewer. Die studie besin oor die mate waarin Namibiese staats- en plaaslikeregeringsbeleid die ontwikkeling van die KMO-sektor sowel as dié sektor se bydrae tot PEO ondersteun. Die volhoubaarheid van die maatreëls wat die regering, en veral plaaslike regering, ingestel het, word ook verken. Voorts probeer die navorser vasstel hoe die Namibiese KMO-sektor gereageer het op die ontwikkeling van dié tipe ondernemings as sleutel tot plaaslike maatskaplike en ekonomiese ontwikkeling deur armoedeverligting en werkskepping. Ondanks die nasionaal erkende belang van die KMO-sektor in die strewe na PEO, kom die sektor volgens hierdie studie klaarblyklik steeds voor groot uitdagings op streeks- sowel as plaaslike vlak te staan. Dikwels is saketoetrede (aanvangskapitaal), -oorlewing en -groei wesenlike hindernisse. Die beskikbaarheid van geldelike hulpbronne, die gebrek aan vermoë om ingewikkelde sakebestuurskwessies te hanteer en die verkryging van ’n sakeperseel, ook wat eiendomspryse betref, is alles tersaaklike kwessies in dié verband. Dus is daar ’n dringende én voortdurende behoefte aan die verbetering en instandhouding van die vereiste elemente vir ’n goeie sakeklimaat.

Thesis (MDF)--Stellenbosch University, 2006. / Capital flight is a serious problem for Namibia as well as other countries. If not addressed, it will continue to impede national investment, macro-economic management and economic growth. These issues are particularly pertinent to Africa in view of it is high incidence of capital flight in the presence of foreign exchange constraints, limited foreign capital flows, external indebtedness and high dependence on overseas development assistance. The purpose of the study is to determine the magnitude and determinants of the capital flight burden in Namibia for the period 1990-2005. The study consists of a literature review, identifying an appropriate model for the capital flight burden in Namibia, data collection, and estimating and testing of the model using secondary data from Namibia. The study adopts two approaches to measure the extent of capital flight from Namibia: the residual approach and the Morgan Guaranty Trust method which is modified from the residual method of calculating capital flight. The residual method is an indirect approach based on a comparison between sources of capital inflows with the uses of these inflows. This approach was changed by Morgan Guaranty to include an additional item, the change in short-term foreign assets of the domestic banking system. The estimates from the study indicate capital reversal from Namibia over the IS-year period, averaging U$88.2 million using the residual method and U$200.4 million using the Morgan Guaranty method. The findings, although different from the picture on the ground, create a very good base for future research on capital flight in Namibia, which tends to be more uniformly related to portfolio diversification. The results from the three main model variants are unequivocal and indicate that an increase in aid and concessional grants tends to reduce the capital flight burden, while on the other hand the burden is seriously increased by depreciation of the Namibian dollar and an increase in inflation. These results have important implications for the Central Bank and the Treasury in tenns of strategic economic policy reforms.

Thesis (MBA)--Stellenbosch University, 2007. / ENGLISH ABSTRACT: The Goverment of the Republic of Namibia soon after independence, recognised its cardinal national responsibility to change the orientation of the nation's economy from one of exporting raw materials and importing final-use products to in-country production of goods based on the country's resource endowment. One productive sector for which explicit and far-reaching guiding policies, strategies and programmes have been developed and instituted from the beginning is the promotion of highly competitive industries with special emphasis on SMEs as a major pathway to progressive and sustainable industrialisation and employment and the simultaneous development of entrepreneurial culture. In recognition of the critical role the SMEs can play in the socia-economic development and economic diversification of the country, the Government of Namibia through its Ministry of Trade and Industry has put in place policies and programmes, specifically for the development of SMEs. To this end, the Ministry of Trade and Industry realised that the lack of bankable business plans limited entrepreneurs' access to finance and this posed the biggest challenges to the growth of the SME sector in the country. This has been conceived as a daunting factor and stems from the reality that entrepreneurs cannot provide bankable business plans to back up their applications. Given the prevailing condition, the Government of Namibia initiated the MSME Feasibility Studies and Business Plan Support programme ~ specifically geared to assist the SME sector with bankable business plans in order to induce financial institutions to provide loans to entrepreneurs with viable project ideas and prospects for success. The objective of the study is to explore the extent to which this support programme has facilitated the access to finance by SMEs and the creation of sustainable businesses. The findings of the study have established that worldwide some of the developed and developing countries initiated and implemented similar govemmental programmes in the form of subsidies to the services rendered by third parties to SMEs in business-plan formulations and related advisory services. / AFRIKAANSE OPSOMMING: Kort na onafhanklikheid het die regering van Namibia besef dat die landsekonomie minder afhanklik moet word van grondstof-uitvoere en die invoer van vervaardigde goedere, met groter klem op die verwerking van plaaslik vervaardigde grondstowwe. In die verband is kleinsake as 'n belangrike ontwikkelingsinstrument beskou en 'n vername skepper van nuwe werksgeleenthede, wat juis in die uitvoer-georienteerde landbou- en mynbou-sektors aan die kwyn is. Om hierdie herorientasie van die ekonomie te bevorder het die Ministerie van Handel en Nywerheid verskeie programme ontwikkel, veral vir die bevordering van kleinsake. In die verband is die probleem van bankfinansiering as 'n besondere knelpunt beskou , met die gebrek aan omvattende sakeplanne vir finansierbare projekte gesien as kemprobleem. Met die oogmerk het die Ministerie die "SME Feasibility Studies and Business Plan Support programme" ontwikkel, ten einde finansiele instellings te motiveer om meer geredelik finansiering te verskaf. Hierdie studie ontleed die bestaande program, sy agtergrond, ontwikkeling en probleme asook die baie beperkte sukses wat tot sover bereik is. Vergelykings met programme in ander lande suggereer dat verreikende aanpassings nodig is om die program meer betekenisvol en suksesvol te maak

Thesis (MDF)--Stellenbosch University, 2012. / This study assessed the developments in financial intermediation services provided by Namibia’s commercial banking sector during 1995 to 2008. The study used two measurements of financial deepening in order to ascertain whether the role of the banking sector has become more important in the economy or not. These methods are the credit extension to non-finance private sector and the financial intermediation to GDP ratio. Unlike previous studies, which found that financial intermediation has not deepened before or after independence (Shiimi & Kadhikwa, 1999; Kavari, 2003), this study found some evidence of financial deepening in Namibia as indicated by the increasing credit extension and financial intermediation as shares of GDP. However, the banking sector did not perform well in terms of improving efficiency as banks continued to operate with high interest margins and became more dependent on fee income as opposed to deriving more of their income from intermediation activities. The largest chunk of bank credit was in the form of mortgage funding, allowing individuals, real estate and the business sector to be the major recipients of bank credit during the review period. The study took cognisance of recent measures aimed at enhancing the sector’s relevance and contribution to the economy. These include amendments to the statutes to allow entry of unincorporated bank branches in order to increase competition as well as requiring banks to reduce interest margins, amongst other measures. The study therefore recommends a vigorous implementation of these measures and that the regulator should extend its monitoring oversight to cover actual lending and deposit rates of interest in addition to base rates such as the prime rate and the mortgage base rate that it currently monitors. This is necessary due to weak linkages between the base rates and actual interest rates. The study further recommends a concerted national effort that seeks to ensure availability and affordability of credit on one hand, and to prepare bank clients, particularly the SME sector to be ready to take up finance on business terms on the other hand. This requires incentivising SMEs to become formal businesses and providing them with necessary training and mentoring services in order to improve their risk profiles.

Thesis (MPA (Public Management and Planning))--University of Stellenbosch, 2009. / ENGLISCH ABSTRACT: Black Economic Empowerment (BEE) in Namibia is viewed as an essential poverty reduction strategy in the fight against black disempowerment. However, the concept and practice of BEE in Namibia, prevails in the absence of a national BEE policy. Nonetheless, the government has encouraged the public and private sector to develop their own empowerment initiatives, in accordance with the draft BEE guidelines. The practice of BEE in Namibia has become controversial amongst the presently disadvantaged Namibians with regard to its implementation. Criticisms on the implementation of BEE are based on the assumption that BEE has resulted in the selfenrichment of a small black elite as opposed to empowering the poor. Breaking the cycle of underdevelopment and marginalization requires a commitment towards Broad-Based Black Economic Empowerment (BBBEE) and broad-based ownership. The ultimate objectives of BBBEE are to achieve significant decreases in poverty, income inequality and unemployment. The primary objective of the research was to analyze the implementation of BBBEE within two companies in Namibia, namely; Namibia Mineworkers Investment Company Financial Services (Nam-MIC FS) and the National Housing Enterprise (NHE). The purpose was to determine whether the poor are benefiting from their respective BBBEE strategies and to what extent. A descriptive case study approach was used to understand the empowerment process within the identified institutions. Two data collection methods were used, namely; open-ended questionnaires and standardized open-ended interviewing with the Chief Executive Officers (CEOs) of the respective institutions. The findings reveal that Nam-MIC FS is promoting broad-based ownership in that union members are able to access affordable financial services and products. However, Nam- MIC FS has failed to effectively implement BBBEE, since key areas of empowerment, such as the implementation of a broad-based skills development programme for employees, Small Medium Enterprise (SME) development for union members and community initiatives have been overlooked. The conclusion is that Nam-MIC FS is promoting a minimalist approach to empowerment, since its main focus is on the provision of affordable financial services and products, which is a short-term and unsustainable approach to reducing income inequalities and poverty. The main recommendations include the need to formulate and implement internal policies in respect of the transformational guidelines and implementing a monitoring and evaluation system. The findings on NHE reveal that whilst a BBBEE model has been implemented, a shortcoming is the failure to implement a skills development programme for black SME contractors. Moreover, of concern is the failure by NHE to promote broad-based ownership in the provision of housing, since the poor and very poor are directly and indirectly excluded from housing opportunities. The conclusion is that NHE is not promoting the broader participation, capacity building and economic improvement of the poor and very poor, which exacerbates the housing backlog through the emergence of informal settlements. The main recommendations pertain to the need to directly or indirectly include the poor and very poor in the provision of housing opportunities and a need to implement a skills development programme for black SME contractors, in addition to implementing a monitoring and evaluation system. / AFRIKAANSE OPSOMMING: Swart Ekomiese Bemagtiging (SEB) in Namibië word as ‘n noodsaaklike strategie vir die verligting van armoede in die stryd teen swart verontmagtiging beskou. Die SEB-konsep en die beoefening daarvan staan egter sonder ‘n ondersteunende nasionale SEB-beleid. Desnieteenstaande moedig die regering die private en die besigheidsektors aan om self bemagtigingsinisiatiewe in ooreenstemming met SEB-konsepriglyne te ontwikkel. Vir minderbevoorregtes in Namibië is die beoefening van SEB egter omstrede vanweë die implementering daarvan. Kritiek oor die implementering van SEB word gebaseer op die aanname dat SEB die selfverryking van ‘n klein groep swart elite instede van die bemagtiging van armes behels. Verbreking van die siklus van onderontwikkeling en marginalisering vereis verbondenheid tot Breë Basis Swart Ekonomiese Bemagtiging (BBSEB) en breë basis eienaarskap. Die uiteindelike oogmerke van BBSEB is betekenisvolle vermindering van armoede, ongelyke inkomste en werkloosheid. Die primêre doelwit van hierdie navorsing was om die implementering van BBSEB in twee maatskappye in Namibië, die Namibia Mineworkers Investment Company Financial Services (Nam-MIC FS) en die National Housing Enterprise (NHE), te ontleed. Die doel was om te bepaal of die armes enige voordeel uit die onderskeie BBSEB-strategieë trek en in hoeverre dit gebeur. Die navorsing is met behulp van beskrywende gevallestudies benader om die bemagtigingsproses in die betrokke instansies te kan verstaan. Twee insamelingsmetodes is vir die verkryging van data gebruik: ope-vraag vraelyste en gestandaardiseerde ope-vraag onderhoude met bedryfshoofde van die onderskeie instansies. Die bevindings toon dat Nam-MIC FS breë basis eienaarskap bevorder deur vakbondlede in staat te stel om toegang tot bekostigbare finansiële dienste en produkte te bekom, maar nie daarin geslaag het om BBSEB effektief te implementeer nie, aangesien sleutelareas van bemagtiging, soos implementering van breë basis vaardigheidsontwikkelingsprogramme vir werknemers en ontwikkeling van vaardighede vir Klein en Medium Ondernemings vir vakbondlede, sowel as gemeenskapsinisiatiewe, oor die hoof gesien is. Die gevolgtrekking is dat Nam-MIC FS ‘n minimalistiese benadering tot bemagtiging bevorder – hulle is hoofsaaklik op die verskaffing van bekostigbare finansiële dienste en produkte gerig, wat as ‘n korttermyn en onvolhoubare benadering tot die vermindering van inkomste-ongelykheid, en tot armoede, beskou word. Die vernaamste aanbevelings betrek die behoefte om ‘n interne beleid ten opsigte van transformatiewe riglyne te formuleer en ‘n stelsel vir die monitering en evaluering daarvan te implementeer. Bevindings oor die NHE toon dat ‘n BBSEB model geïmplementeer is, maar die firma tekortskiet aangesien hulle nie ’n vaardigheidsontwikkelingsprogram vir swart KMOkontrakteurs kon instel nie. Verder is dit sorgwekkend dat die NHE nie geslaag het om breë-basis eienaarskap deur voorsiening van behuising te bevorder nie, aangesien die armes uiters arm is en direk sowel as indirek uitgesluit word wanneer geleenthede vir behuising ter sprake is. Die gevolgtrekking is dat die NHE nie breër deelname, die ontwikkeling van kapasiteit, en ekonomiese verbetering van armes en uiters armes bevorder nie, waardeur die behuisingsagterstand vererger, en informele nedersettings ontstaan. Die vernaamste aanbevelings betrek die behoefte aan direkte of indirekte insluiting van armes en uiters armes by die voorsiening van behuisingsgeleenthede en die behoefte om vaardigheidsontwikkelingsprogramme vir swart KMO-kontrakteurs, tesame met ‘n monitering- en evalueringstelsel, te implementeer.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The main aim of this study, firstly, is to evaluate the financial performance of the Development Bank of Namibia (DBN) over the period of 2003 to 2007. Secondly, the study aims to compare financial performance of the Development Bank of Namibia with the Development Bank of Southern Africa during the same period. In recent years, there has been a number of criticisms raised against the Development Bank of Namibia. These have been noted by the political appointment of the top management in the bank who has no experience in monitoring of the funds and development projects (World Bank, 2003). In addition, the bank has been criticized for poor performance, in terms of very low returns due to poor procurement performance and weak performance of project management units (African Development Bank, 2005). The bank has also been seen undermining people's human rights through funded projects which were only given to those people who are politically connected or comrades (The Namibian, 2002). Two financial statements of the Development Bank of Namibia, namely the Income Statement and Balance Sheet of the period of 2003 to 2007, are used to evaluate the financial performance of the bank. Trend analysis, monitoring and evaluation reports, financial ratios and statistical tools are employed to conduct this study. Trend analysis, financial ratios and statistical tools indicated that there was no evidence to infer that the Development Bank of Namibia did perform poorly during 2003 to 2007. However, monitoring and evaluation reports indicated that there was inefficiency in terms of bank operations.