Staff Reporter
A YOUNG welder from the Erongo region, Ndeenda Mbungu, has received financial assistance from the Development Bank of Namibia (DBN) facility for skills-based finance to support his welding business, Muudhigu Investments CC.
Muudhigu Investments CC, which operates in Walvis Bay, Swakopmund and Arandis, specialises in metal fabrication, pipe welding, tube brazing, cast iron welding and sheet metal welding.
Mbungu works at the company himself, alongside his permanent work staff, which includes a welder, a handyman and a general worker.
Mbungu also makes use of outsourced accounting services to assist with the management of the business. He intends to hire temporary employees on a needs-basis as the business expands.
DBN stated that Mbungu met the requirements for young artisan finance as he obtained a metal fabrication certificate, with a National Qualifications Framework (NQF) of level 3, from Okakarara Vocational Training Centre (OVTC). He also worked on a full-time basis prior to starting his own business, hence he has the required work experience.
The Bank’s Executive for Marketing and Corporate Communication, Jerome Mutumba, commended Mbungu for not borrowing a large sum of money at once, despite the perception that large amounts of capital are required to start an effective enterprise. He stated that this decision places Muudhigu Investments in a good position as it lowers monthly repayments. This, plus the fact that Walvis Bay is a hub for industrialisation, in Mutumba’s opinion, makes Mbungu and Muudhigu Investments CC the ideal borrowers
“Muudhigu shows that with grit, determination and innovation, a business can be established with lean capital structures. In the case of youth enterprise, although expectations are often high, the reality is that larger loans often impose a significant debt burden on the young,” Mutumba stated.
Mutumba further emphasised that Namibia has to consider future economic activity, while developing enterprises. This, Mutumba stated, is the rationale behind the skills-based facilities for artisans and professionals.
“Investments in youth and their empowerment as entrepreneurs are one of the best ways in which we can express our hope to expect more from the future,” Mutumba added.
