Evaluating the effect of the Micro Finance Scheme Programme for rural entrepreneurs in Oshikoto Region, Namibia

Amadhila, Foibe Kandalindishiwo (2019-04)

Thesis (MPA)--Stellenbosch University, 2019.

Thesis

ENGLISH SUMMARY : The notion and practice of rural development gained prominence in today’s economies as a result of underdevelopment and huge disparities between urban centres and rural areas. Immediately after the independence of Namibia, attention was concentrated on the development and improvements of urban areas while rural areas, where most of the poor and marginalised resided, were neglected. Regarded as agricultural centres, it was reasoned that there was no need to take services to these areas and that rural inhabitants could anyway not afford to pay for or maintain services. With fewer opportunities available in rural areas, people went to seek a better life in the peri-urban and urban centres. Subsequently, the Government of the Republic of Namibia, in consultation with development partners and stakeholders, introduced a number of programmes and interventions aimed at developing rural areas, explore opportunities and potentials. Micro, Small and Medium Enterprises (MSMEs) are engines of many economies and greatly contribute to employment and wealth creation. In addition, MSMEs trigger entrepreneurship and contribute to self-reliance and also to the economic growth of communities. Although MSMEs can make major contributions to the economy, they are faced with a number of challenges of which some are access to finance, financial services and land, lack of entrepreneurial and business skills, and lack of adequate supporting infrastructure. Lack of funding and financial services is regarded as the most serious constraint to entrepreneurship and MSMEs growth and development. Hence, the Government of the Republic of Namibia through the Ministry of Urban and Rural Development introduced a Micro Finance Scheme Programme to be implemented at regional level by regional authorities. The programme is aimed at promoting entrepreneurship, supporting and empowering viable existing and new MSMEs businesses and projects in rural Namibia and in the end improve the livelihood of rural inhabitants and gear the country towards attainment of the national development goals and Vision 2030, through providing funding and funding advice to MSMEs in rural areas. The main objectives of the programme are: promotion of entrepreneurship and innovation in rural areas; providing financial support, building capacity of rural entrepreneurs, creating decent employment, and increase income and wealth. Thus, it targets rural inhabitants aged 18 and above, more specifically the youth and women since they are the most marginalised in our communities. The study evaluates the effects of the Micro Finance Scheme Programme in the Oshikoto Region, to establish if the programme is being executed as planned; whether it is reaching the intended beneficiaries and whether it had an effect in the region. Furthermore, the study will make recommendations for adjustments and improvements on the programme. A survey of the Rural Services personnel at Oshikoto Regional Council as administrators of the programme as well as enterprises and project members in the Oshikoto region that have benefited from the programme, was conducted to find out their views and perceptions of the programme, the effects as well as the challenges they are experiencing or have experienced by both programme administrators and beneficiaries. It is established that the programme is necessary although a lot still need to be done for it to realise its intended goals and benefits. The study concludes that it requires more commitment and guidance as well as training and mentorship for both administrators and beneficiaries or target population to improve the efficiency and effectiveness of the programme and realisation of the goal of sustainable and inclusive rural development.

AFRIKAANSE OPSOMMING : Die idee en praktyk van landelike ontwikkeling raak al hoe meer belangrik in hedendaagse ekonomieë as gevolg van onderontwikkeling en die groot verskille wat tussen stedelike sentra en landelike gebiede bestaan. Onmiddellik na onafhanklikheid is daar baie gefokus op die ontwikkeling en verbetering van stedelike gebiede terwyl buitestedelike gebiede beskou is as landbou-sentra waar arm en gemarginaliseerde persone woon. Dit is as vanselfsprekend aanvaar dat dit nie nodig was om dienste aan hierdie gebiede te lewer nie, aangesien die persepsie was dat die inwoners in elk geval nie kon bekostig om vir hierdie dienste te betaal nie en sou dan ook nie in staat wou wees om strukture in stand te hou nie. Die verskille in dienslewering en die tekort aan ekonomiese geleenthede in landelike gebiede het veroorsaak dat mense begin wegbeweeg het na stedelike en buitestedelike sentra in die hoop op ’n beter lewenskwaliteit. Daarna het regerings, insluitend die regering van die Republiek van Namibië, deur oorlegpleging met ontwikkelingsvennote en belanghebbendes, ’n aantal programme en intervensies ingestel wat daarop gemik was om plattelandse gebiede te ontwikkel, geleenthede te skep en die potensiaal te ondersoek om beskikbare geleenthede beter te benut. Soos dit deur baie mikro-, klein- en medium-grootte ondernemings (MKMO’s) erken word, is dit die enjin wat die ekonomie dryf en dra dit grootliks by tot werk- en welvaartskepping. Daarbenewens gee MKMOs aanleiding tot entrepreneurskap en dra dit by tot selfvertroue en die ekonomiese groei van gebiede. Alhoewel MKMO’s grootliks bydra tot die ekonomie, word hulle gekonfronteer met ’n aantal uitdagings wat onder meer toegang tot finansies en finansiële dienste, toegang tot grond, gebrek aan ondernemings- en sakevaardighede, gebrek aan voldoende ondersteunende infrastruktuur, om maar ’n paar te noem, insluit. Gebrek aan finansies en finansiële dienste word beskou as die mees ernstige beperking op entrepreneurskap en MKMOs se groei en ontwikkeling. Daarom het die Regering van die Republiek van Namibië deur die Ministerie van Stedelike en Landelike Ontwikkeling 'n mikrofinansieringskema ingestel wat deur streeksowerhede op streeksvlak geïmplementeer moet word. Die programme is daarop gemik om MKMOs in landelike Namibië te help groei en te bemagtig en uiteindelik die bestaan van landelike inwoners te verbeter. Dit help weer die land om die nasionale ontwikkelingsdoelwitte en Visie 2030 te bereik deur middel van befondsing en befondsingsadvies aan MKMOs in landelike gebiede. As die landelike opset en formele marginalisering in ag geneem word, sluit die mikrofinansieringskema die ondersteuning van projekte en besigheidsinisiatiewe van inwoners van die plattelandse gemeenskap in. Die vernaamste doelwitte wat hierdie programme poog om te bereik, is die bevordering van entrepreneurskap en innovasie in landelike gebiede; die verskaffing van finansiële ondersteuning, die bou van kapasiteit van landelike entrepreneurs, behoorlike werkskepping, inkomste en welvaart. Dit is dus gerig op landelike inwoners van 18 jaar en ouer, maar meer spesifiek die jeug en vroue, aangesien hulle die mees gemarginaliseerde sektore in hierdie gemeenskappe is. Hierdie studie het dit ten doel gestel om te bepaal of die mikrofinansieringskema in Oshikoto-streek geëvalueer om vas te stel of die programme, soos beplan, uitgevoer kan word; of dit die beoogde begunstigdes sal kan bereik; en of dit ’n uitwerking op die streek gehad het. Verder het die studie aanbevelings gemaak vir aanpassings en verbeterings van die programme. ’n Vraelys is aan die landelike ontwikkelingspersoneel by Oshikoto Streeksraad as implementeerders van die programme, sowel as ondernemings, koöperasies en projeklede in die Oshikoto-streek wat voordeel uit die programme getrek het, gestuur. Die doel hiervan was om hul sienings en persepsies van die programme, die effekte sowel as die uitdagings wat hulle as gevolg van die programme ervaar het, te bepaal. Die studie het vasgestel dat die programme noodsaaklik is, hoewel daar nog baie gedoen moet word om die voorgenome voordele te realiseer. Dit vereis meer toewyding en leiding sowel as opleiding en mentorskap wat deur die raad en begunstigdes of teikenbevolking benodig word om die doeltreffendheid en effektiwiteit van die programme te verbeter en die verwesenliking van volhoubare en inklusiewe landelike ontwikkeling te verseker.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/106052
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