Namibia: Nida Closes Defaulting SME Stalls

Keetmanshoop — The Namibia Industrial and Development Agency is in the process of closing down all small and medium enterprises stalls in the country of tenants operating at its facilities, who failed to honour their monthly rent.

Wessel !Nanuseb, senior manager of corporate services and HR said due to these defaulters, Nida has become unable to execute its mandate, hence the decision to close stalls of defaulting SME operators at its facilities countrywide which commenced in Windhoek three weeks ago.

"Closure of these facilities commenced mid-June after defaulting tenants failed to approach our head office, as urged through public and social media as well as notices posted at relevant stalls to make arrangements for servicing arrear payments," he explained in a reply to written questions sent to him.

He said in the absence of this arrangement tenants will be denied access to the stalls and that further remedial measures will include legal options to be carried out.

However, a group of disgruntled entrepreneurs at the Keetmanshoop SME Park vowed to keep their stalls open despite the Namibia Industrial and Development Agency decision (Nida).

"We will continue with business as usual and keep our premises open until the Nida management comes back to us to find an amicable solution for our dilemma," the group's spokesperson, Vaino Hango emphasised.

He continued that some of them are selling take-away food and raised the fear that the food might get rotten and their equipment might get stolen if the stalls are closed.

Hango also felt there was no official communication from Nida informing them of its intention, apart from placing it in the media.

"They just came here on Tuesday and put up notices of closing their facilities without consulting us in the process," he said.

He also disputed the arrear amounts they, as tenants owe the agency which are as high as N$28 000 for some stalls.

"How is this possible if our monthly rental fees are ranging from N$600 to N$1 200 and also the fact that Nida only took over from the former Namibia Development Corporation (NDC) in 2020?" he asked. The group, in addition, claimed that they are also operating on expired NDC contracts. !Nanuseb, however, in his response urged tenants to approach their finance office in such instances.

One of the tenants, Titus Hamutenya, when approached bemoaned the decision of Nida to close their premises.

"Schools are opening within two weeks and how will I be able to take care of my children and family if not operating my barbershop?"

The tenant said they suffered a lot during the Covid-19 pandemic and that their businesses are only recovering now, making it impossible to pay the arrear amounts demanded by Nida at this stage.

On a notice shown to this publication by one of the tenants, the arrears amount to a 50% once-off payment of more than N$12 000.

Tuyeni Moses, who is assisting one of the tenants, said as the only breadwinner in her family, they will suffer heavily if the stalls are to be closed.

"What is also worrisome is that some of these facilities are even rented out to government employees, she added.

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