Development Bank of Namibia (DBN) and the Namibia Investment Promotion Board (NIPDB) have formalised their cooperation with a memorandum of understanding (MoU).
The MoU, which focuses on SMEs, harnesses the capacity of both agencies to further develop the SMEs sector.
Speaking about the need for cooperation, DBN CEO Martin Inkumbi said the Bank is a financing agency that is dependent on demand from potential borrowers and will thus leverage on the NIPDB’s role of promoting economic participation through enterprise activity.
“There are multiple initiatives to develop enterprises, but these initiatives often replicate the work performed by others. This leads to replication of work and potential mixed messages. By combining forces and seeking synergies through cooperating agencies, economic policy can be executed more efficiently,” Inkumbi said.
Dino Ballotti, the NIPDB Executive Director for MSMEs Development, said MSMEs play a significant role in financial development, yet they face real challenges in the form of lack of information and financial support.
“Evidence demonstrates the scale and commercialisation of the sector can be achieved through the development of smart partnerships, such as this one, which will further drive the MSME agenda and ensure that no one is left behind. Access to information and innovative practices that can scale enterprises remain fundamental where the excellent work of the Development Bank will only enhance the efforts of an inclusive, more competitive business environment,” he said.
Although the Development Bank of Namibia’s minimum loan amount is N$150,000 for registered enterprises or N$50,000 for young professionals and artisans, it provides apex microfinance for on-lenders who provide enterprise loans in smaller amounts.
The two development agencies have previously cooperated in the past, notably when DBN accompanied the NIPDB Know2Grow outreach programme, during which DBN introduced its products to SMEs in 26 towns across the country.
