Start-up Namibia Project

laufendes projekt

ContextNamibia is a middle-income country but is characterised by a significant unequal distribution of income. The unemployment rate is quite high at 33.4 per cent (2018), particularly with the rising rate of youth unemployment of over 46 per cent (2018) representing a major challenge for the country. After years of economic growth, the Namibian economy has contracted since 2016 and is only expected to recover slowly. In addition, the national debt is very high and only allows limited investments by the Government. In the private sector, the small and medium-sized enterprises (SMEs) are not competitive, and their overall diversification is low. There is a lack of newly founded companies, and only a few innovations reach market maturity. Many market potentials in the traditional and digital economy therefore remain unused.Start-ups can contribute to economic growth by spurring innovation and promoting a competitive nature. Start-ups have the potential to drive the creation of new jobs in Namibia, as well as have a fundamental impact on overall economic productivity. Start-up entrepreneurs bring new ideas to the table, which are much needed to stir innovation and stimulate competition. In Namibia, the combination of innovation and technology with traditional industries opens new opportunities.Start-ups tend to cluster and thrive in an ecosystem where they find the necessary resources for success, including good universities, incubators, public and private-sector support, as well as expert services like legal, accounting and consulting services.It is this ecosystem needed by start-ups that is so far inadequate or lacking completely in many regions of Namibia. As a result, the number of new Start-ups and their growth potential remains below expectations. The project thus aims to improve conditions for the establishment and growth of start-ups in selected regions of Namibia.ObjectiveThe conditions for the establishment and growth of start-ups in selected regions in Namibia are improved.ApproachThe Start-up Namibia project is a joint Namibian-German technical cooperation project for Sustainable Economic Development, implemented by the Namibian Ministry of Industrialisation, Trade and SME Development and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project is implemented in line with the existing National Development Plans of Namibia, which emphasise the positive development perspective created by the founding of companies and their support. The Namibian Government has anchored the support for start-ups in the Development Plan of the Presidential Office, as well as in the National Development Plan 5, and in the National SME Policy.A Start-up Incubation and Innovation Centre will be built in Windhoek on the premises of the City of Windhoek’s Bokamoso Entrepreneurial Centre, with a co-working space, maker-space, community area and a small shop. The Centre will incubate start-ups and serve as a "one-stop-shop" for all needs a start-up faces in its ideation, establishment and growth phases. In addition, mobile outreach units will serve start-ups in three regions in Namibia. The Centre will be run as an independent entity with a sustainable business model, by a contractor selected through an international tender.The Start-up Centre in Windhoek as well as the mobile outreach units in the selected regions will provide a range of business development services to start-ups. This will strengthen their entrepreneurial capacity and reduce the rate of failed businesses.The project will work on improving access to financial services for start-ups (such as start-up capital and growth financing) by getting them investment-ready. The project will also comprise a grant scheme for start-ups. One of the underlying principles of the project is to ensure that women and persons living with disabilities are encouraged to partake in the various activities offered at the Start-up Centre, in order to contribute towards addressing the gender disparities that further the unequal distribution of income.Cooperation with a wide range of partners such as other local and regional start-up incubators and innovation centres, universities, financial institutions or associations will be set up to expand the service offer of the Start-up Centre and at the same time build the Namibian start-up ecosystem.Results• Until the end of the project, Start-up Namibia will support the founding of a minimum of 150 start-ups and assist a further 500 founders to start their business through various support programmes.• The governance structure for the project has been set up successfully. The Steering Committee under the chairmanship of the Deputy Executive Director of MITSMED with further representatives of the City of Windhoek, the Ministry of Higher Education and Innovation and GIZ had its inaugural session in April 2019 and is since meeting regularly.• The contractor for the management of the Start-up Incubation Centre is scheduled to assume their work by 1 December 2019.• The architect to design the Start-up Incubation Centre has been selected. Nina Maritz Architects, who are specialised in sustainable and eco-friendly architecture will design the Start-up Incubation Centre as from September 2019 onwards.• The first intake for a start-up acceleration programme opened in September 2019. 15 start-ups will be selected to be part of the 6-month acceleration programme.• The Ground-breaking Ceremony for the Start-up Incubation Centre took place on 9 October 2019.• The Start-up Incubation Centre in Windhoek is scheduled to open its doors to the public in May 2020.• The mobile outreach units will be serving start-ups in selected regions of Namibia from July 2020 onwards.

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