Development Finance Institution, Proparco, has granted FNB Namibia a portfolio guarantee of N$68 million (EUR 4 million) to support the bank’s efforts of providing finance to high-impact MSMEs.
The guarantee will be coupled with a technical assistance facility designed to provide the financial institution’s MSME customers with capacity building support.
The partnership, which is being supported through a EURIZ guarantee, seeks to contribute towards FNB Namibia’s efforts to support Namibian MSMEs operating in key sectors such as agriculture, health, education and climate, as well as youth-owned SMEs, women-owned SMEs, and start-ups.
A significant proportion of the guarantee will focus on supporting those MSMEs operating in the agriculture sector, in an effort to contribute to Namibia’s food security objectives.
Launched in May 2019 with the support of the European Union and the European Development Fund, and the Organization of African, Caribbean and Pacific States (OACPS), the EURIZ guarantee aims to facilitate access to credit for MSMEs, particularly those in sectors with a high development impact, to enable them to play an essential role in economic growth and job creation.
The AFD Group, working with local financial institutions, contributes to strengthening financial markets and plays a counter-cyclical role by increasing funding for local economic actors so that they increase their chances of overcoming consequences of the COVID-19 pandemic.
FNB Namibia is a long-standing partner of Proparco and AFD Group having already benefited from two portfolio guarantees in 2011 and 2014.
