Kandjengo Mkwaanyoka
We often hear terms like economic restoration, previously disadvantaged, empowerment, and inclusivity being on a daily basis as companies attempt to demonstrate economic empathy.
It sounds promising, but a closer look reveals that these are just words with little impact on practical economic transformation or deep participation for the masses.
As a country desperately seeking economic transformation and broader participation, the key issue is capital.
Discussions, whether in parliament, traditional authorities, lectures, or conferences, should focus on capital: how to obtain it, and how to make it accessible to our people.
The primary systemic barrier hindering the dreams of every Namibian child is access to tailor-made capital.
One major institutional failure is the lack of a strategy for funding the black economy.
Despite efforts, such as Agribank, we have not effectively addressed the funding of economic transformation, especially in rural areas. Our current solutions for economic financing are nascent and not tailored to support the young economy.
The Development Bank of Namibia (DBN) is relatively new, the SME and Youth Financing Strategy was only recently initiated, and the SME Bank had a brief existence.
Nationally, we lack a comprehensive strategy to fund the desired economic transformation. We seem to wish for things to improve on their own, but as Chinua Achebe noted, “things fall apart,” or perhaps remain stagnant.
Expecting fresh graduates and school dropouts to have assets for collateral is unrealistic and detrimental.
Excluding communal areas from accessing commercial capital shows a lack of self-support.
For example, owning five goats and a small field in my village does not qualify as collateral.
This forces many to move to Windhoek, rent for life, and work for minimal wages below N$5000 per month, despite their potential for entrepreneurship.
From independence, there was an illusion that commercial banks would fund economic transformation and enable participation by the vulnerable and less empowered.
However, startup capital cannot be offered at prime rates; it requires a different approach.
Until we understand this, true economic liberation will remain elusive.
We must be deliberate in our efforts to make capital available and tailored to the unique circumstances of our people.
The credit guarantee scheme is a promising idea, but it still needs to be customised with its own risk-assessment template, rather than relying on the commercial bank model.
Our economic financing strategy must be homegrown, not influenced by South Africa or other external benchmarks.
It should be designed to meet the specific needs of our people, ensuring that every child with a dream and vision can access finance, regardless of whether they are in rural or urban areas.
We need to review our credit laws, redefine what can be used as collateral, and revamp youth financing to include the informal economy.
Economic rebuilding and inclusivity hinge on access to capital. Let us not be fooled into thinking otherwise.
Currently, there are no bank branches, asset management services, or financing programs in rural areas.
This forces people to leave productive rural land to sell kapana, second-hand clothes, or drive taxis in urban areas, a strategy reminiscent of old colonial practices of sending men to work on farms and in mines.
Providing access to capital is paramount. Everything else is complementary.
An inclusive economy can only be achieved if everyone has equal access to affordable capital to start, expand, and innovate.
Access to capital is the defining factor. No amount of conferences, lectures, prayers, donations, foreign direct investment, or economic sympathy will change that.
gerastus16@gmail.com
