Thanks to the Namibian Procurement Fund, Mr P. Van Wyk and Mr J. Shilyomunhu owners of Warthog Trading Enterprise cc made a step closer to the realisation of their dream.
Warthog Trading Enterprise cc (Warthog) has been in operation for two years and 6 months and is specialised in various types of welding works (mild and stainless steel), renovation and construction works. The two dedicated businessman started their business in Windhoek with the aim of becoming self-employed and to help alleviate unemployment in Namibia.
Some of the work that Warthog has in progress is repairs and maintenance at the Windhoek Engen and regular inflow of projects from the City of Windhoek and the private sector.
Mr Shilyomunhu points out that one of the challenges they face when working on a project in any of their specialized fields is the lack of finance. “Sometimes one is successful in acquiring tenders and/or contracts but lack funds to take the job or complete it. Financial institutions always want collateral which is another challenge that causes SMEs to miss opportunities. Warthog and other similar starting businesses only have assets of minimal value that are not adequate to cover the percentage of the required collateral. However, it is better with an institution like NamPro Fund, as their security requirement is minimal compared to commercial banks and they are very considerate,” he says.
He further indicated that it is rare to come across institutions with short turnaround times to approve or respond to an application; the long bureaucracy procedures within some institutions impacts SMEs negatively. For instance only a few institutions can approve or respond to your application within less than two weeks, and that is what the Fund offers to their repeat clients.
Regarding the future of Warthog, Mr J. Shilyomunhu stresses that since their primary business activity is welding, they are planning to start manufacturing trailers for industrial and private usage. They further plan to expand by increasing their customer base and subsequently employ more people.
He advises business people venturing in the construction industry that it is important to identify projects that they can execute successfully by ensuring that they have adequate resources such as skills, experience, funds and materials. “SMEs should deliver quality products to avoid being called back for substandard service or work done as they may end up having higher expenses than the income generated. Make sure to pay your employees, they are the backbone to the success of your business.”
Warthog received funding from NamPro Fund the form of Performance Guarantees, Working Capital Finance and Purchase Order Finance. The funding received enabled the successful completion of a number of projects strengthening the business position in revenue generated and expertise.
NamPro Fund supports the funding need of businesses who have successfully secured contracts for supply and delivery and/or value adding projects to reputable Off-takers such as Local Authorities, Parastatals, Private Sectors and Central Government.