Good news for startups in the Southern African country of Namibia. The Namibian Investment Centre (NIC), under the Namibian ministry of trade is looking for startups or local businesses desiring to raise up to N$10 million (US$670k) or more in capital to start or expand their operations. Consequently, the Centre advises them to submit their investment needs to the ministry of trade for promotion to local and external investors.

Here Is All You Need To Know

• According to a NIC advertisement, the project proposals should fall within seven of the identified sectors and must meet the minimum investment amount indicated per sector.
• Entrepreneurs operating or wishing to start agro-processing, manufacturing, education and innovation, logistics or tourism ventures are invited to submit their proposals, provided they require at least N$10 million ($670k).
• For those operating in the hospitality sector, their investment needs should be at least N$20 million, while the financial needs for those operating in energy and mineral beneficiation should be N$100 million or more.
• The centre also indicated that it is willing to seek investors for local entrepreneurs operating in the fish processing, steel manufacturing, chemical, building material, pharmaceuticals, cosmetics sectors provided that their investment needs meet the minimum threshold.
• NIC clarified that the ministry is not funding, but rather offering an opportunity for projects to be known by potential investors.
• Therefore, the idea is to market those projects whose financial viability is somewhat proven through detailed business planning and financial analysis.
• The platform is open to feasible start-up businesses with potential for sustainability and for expansion of an existing business.

Read also: Kenya Cuts Tax For Local Vehicle Assembly Companies

Criteria for Qualification

• For a project to qualify, NIC says it must be located in Namibia and the business must create or retain employment for Namibians.
• Moreover, the business should have secured land or premises to operate from, and the entrepreneur should be willing to contribute at least 30% of the total investment required, as owner’s equity.
• The investment need proposal should be accompanied by a business plan, projected cash flow, statement for the next 36 months (for start-ups) and quotations supporting the projected cash flow statement for the next 36 months (for start-ups).
• Moreover, Namibian startups or entrepreneurs should also attach a copy of their company registration document and, if the business has been operational for six months or more, annual financials are required.

Deadline:

Project submission is an on-going process. Therefore, although the due date has been set for the end of this month (March 31st), entrepreneurs can still submit beyond the due date and they can contact the centre and the ministry for more details.

For more details, contact the Nambian Investment Center on : nic@mti.gov.na or amoomo@mti.gov.na or www.investnamibia.com.na; Contact: +264 283 7223 (MITSMED)

1 Namibian dollar equals 0.067 United States Dollar (11 Mar, 02:12 UTC · Disclaimer)

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com

Startups in the Southern African country of Namibia have got a new fund to pitch to. Business Financial Solutions (BFS) has officially launched the Kula Capital Namibia Impact Fund and Incubation Centre, which aim to empower local entrepreneurship.

“The investment proposition of Kula Capital Namibia represents one of very few pioneering initiatives in the country offering investors the opportunity to champion the creation of an investment fund that will be a growth catalyst for small and medium-sized Namibian start-up enterprises. The fund will be making investment in value-adding sustainable enterprises generating positive returns ranging from below market to market rate while also having a positive social and/or environmental impact,” Namibia’s Minister of Industrialization, Trade and SME Development, Tjekero Tweya said.

Here Is All You Need To Know

• According to the Chief Investment Officer Equity Investments at BFS, Christina von Doderer the fund is going to provide growth capital to SMEs that continue to suffer from; lack of access to medium/long-term finance for start-ups and company expansion; inappropriate terms and conditions for short-term credit or trade finance and insufficient financing and other instruments (particularly relating to Working Capital) to support start-ups and SMEs.
• The fund will also provide capital to SMEs who struggle in terms of low capitalization and lack of collateral and poor record keeping and/or financial management.
• BFS will assist start-ups with advice, operational support, office space, and connect them with the right people from their vast network during this difficult stage in order to get them investment-ready through the BFS start-up studio.
• Kula Impact Fund can then come in to fund, and get businesses operational.

“The fund’s investments will be accompanied by the Fund Manager’s expertise in corporate governance, market and business strategy building and implementation, financial and administrative controls and business best practices as well as access to its wide network, spanning both public and private sectors,” von Doderer said.

• Also launched by Business Financial Solutions was an incubation studio aimed at helping high potential start-ups and SMEs through customised operational and professional support.
• The studio will incubate four start-ups who emerged from the 18 business ideas which were submitted through the BFS and GreenTec Capital Partners in September this year.
• The partnership is meant to support start-ups and SMEs in areas of capacity-building, investment readiness, and fundraising to stimulate entrepreneurship in Namibia.
• The incubation studio targets financially sustainable ideas, up-scalable value-adding projects and disruptive greenfields that need support to get off the ground.
• The targeted projects are on transport solutions, using solar energy, smart technology to help reduce power consumption, cosmetic-pharmaceuticals for sensitive skin, and chlorine production using solar energy.

Read also: Namibian Vocational Graduates to get start-up capital

Von Doderer noted that their fundraising target is to raise N$150 million or at least one-third thereof, in a first closing either later this year or by January 2020. She added that N$15 million of this is secured by Sanlam Investment Management to date.

How Startups Would Be Selected For Funding

“We are going to do proper due diligence when it comes to investing in each and every business, and will obviously only select the ones we consider the best and most promising, ” said Von Doderer

In addition, Von Doderer said they always consult their network, including market experts, when it comes to the feasibility of an idea/product, and they promote it properly in order to avoid failure and default.

She explained that funds will be invested in start-ups that will ensure a tangible social and environmental impact, while also generating acceptable long-term returns.

Moreover, Kula Capital will act as a feeder fund for banks, other funds, as well as the public market by identifying possibilities for turning portfolio companies into local, regional and international players.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world