The Ministry of Finance and Public Enterprises has directed all public entities to allow suppliers, contractors, and service providers who have been awarded procurement contracts to enter into cession agreements with third-party financiers.
The directive by the Minister of Finance and Public Enterprises, Ipumbu Shiimi, will allow small to medium enterprises to secure financing using contracts secured from government-owned entities.
The development is expected to contribute to the growth of local businesses and the expansion of their participation in key economic sectors.
“The Minister recognises the vital role that SMEs play in the development of the economy, creating employment opportunities, and driving innovation. This allows for the cession of payment income that is due to these suppliers, contractors, and service providers as a result of their successful fulfilment of procurement contracts,” Shiimi said in a directive issued on Thursday.
“The cession of payment income from public procurement contracts will provide Namibian registered SMEs with increased access to funding. By actively supporting the growth of local SMEs, this directive will contribute to the overall economic development of Namibia.”
The Minister said the directive aligns with the Ministry’s commitment to promoting economic inclusivity and driving sustainable growth.
“The partnership between suppliers, contractors, service providers, and third-party financiers is anticipated to create a synergistic effect, benefiting all stakeholders involved. The Ministry encourages all eligible entities to take advantage of this directive and explore the opportunities it presents for collaboration, growth, and economic progress. Through the convergence of efforts, Namibia is poised to unlock its true economic potential and foster an environment of innovation, entrepreneurship, and prosperity,” Shiimi said.
