Namibia’s MSMEs at the Heart of Green Growth Readiness

Namibia’s MSMEs at the Heart of Green Growth RReadiness. As Namibia positions itself for transformative economic growth, the spotlight is firmly on Micro, Small, and Medium Enterprises (MSMEs) and their readiness to participate in emerging opportunities across energy, natural resources, and green industrialisation. Speaking at the NIPDB Partnership Forum 2026, leaders emphasized that while potential is undeniable, preparedness will determine who benefits from the new economy.

The Namibia Green Hydrogen Strategy projects significant job creation and local manufacturing opportunities by 2030. Yet, scaling Namibian enterprises requires alignment between policy, finance, and execution. MSMEs already contribute around 12% to Namibia’s GDP and employ 58% of the workforce, but financing gaps remain a formidable barrier. Across Africa, the SME financing gap exceeds $330 billion, with less than 25% of SMEs accessing formal credit.

Capricorn Group, through Bank Windhoek, has demonstrated commitment by advancing N$7.5 billion to SMEs as of December 2025. However, challenges persist on both sides: businesses often approach funders without proper records or governance, while banks must balance support with regulatory responsibility. As noted, “Risk is not reluctance; it is responsibility.”

Innovative financing models are gaining traction. Purchase order financing, invoice discounting, and credit guarantees help bridge cash flow gaps and reduce lender risk. Leveraging digital innovation and better data-sharing agreements could further streamline lending and create accurate risk profiles.

Speakers stressed that development finance must prepare MSMEs for commercial banking rather than substitute for it. Anchor offtake agreements and supplier development programmes tied to procurement needs were highlighted as key to unlocking market access.

With a 44-year track record, Capricorn Group reaffirmed its commitment to sustainable growth, noting that shared responsibility among government, businesses, and institutions is essential. The message was clear: Namibia’s next chapter of growth depends not only on opportunity but on readiness.