Right, basically I need more volume so my band can actually go out and gig properly.

I would like to buy a new amp, but I simply don't have the time or money to actually save up and get one.

My Kustom 16 Watt amp has an external speaker output, and I'd like to know if adding say, a 2x12 cab to it, would this make it louder?

does adding an external cab make your amp louder?
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More volume should come from a PA system. If you're going to be "gigging properly" most of the places you would be trying to gig SHOULD have a decent PA system. I know all the venues where I'm from, even the ones that only do open mic have nice systems. But if you plan on playing in barns or outside for your friends... PA is the way to go.

I mean, how're you miking your singer? Guitar amp?

and for yout TL;DR, not really. It makes your amp move more air, gives it a little more oomph but no, it doesn't increase the volume by any real amount.
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It'll push more air, giving you a 'fuller' sound, but the difference in volume won't be huge.
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Short answer. No. Buy, borrow or steal a louder amp.
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I agree with Artemis above - any half decent place should have a PA system you can mic your amp too and have them raise your volume on the mixer.

If that doesn't work you may just need a different amp =/
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No it won't be louder, and yes you should mic your amp into the PA.
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