The Agence Française de Développement (AFD), the Development Bank of Namibia (DBN), and the Bank of Namibia (BoN) SME Economic Recovery Schemes have benefitted over 520 customers with funding exceeding N$243 million, an official has said.
Executive Officer of Commercial Banking at First National Bank (FNB) Sepo Haihambo said the Schemes have also provided employment for 470 people.
“FNB prioritises the provision of SME Economic Recovery Loan Scheme for business clients with annual turnover of up to N$60 million and has approved N$50,000,000 worth of loans since the launch of the BoN loan scheme. This shows our commitment to growing the economy, employment creation, and job creation,” she said during the banks’ event highlighting FNB Namibia’s role in developing the SME sector.
Haihambo further shared that the FNB’s SME Score Credit pilot project has assisted several SMEs access credit and improve their creditworthiness.
“This is a testament to FNB’s commitment to supporting SMEs and fostering economic growth. To date, over N$128 million in credit (both working capital and term loans) has been extended since inception in November 2021,” she said.
“FNB’s Commercial Banking strives to help Namibian entrepreneurs by realigning their SME Value Propositions, making loan finance accessible to MSMEs with bankable business plans that would have been challenged by a lack of collateral.”
FNB’s Chief Executive Officer Erwin Tjipuka also announced that FNB Namibia is re-purposing its SME Value Proposition to expand SME success.
He also said the bank is launching the Credit Guarantees Scheme to assist SMEs with access financing.
“These solutions are geared towards equipping Namibian Entrepreneurs with the necessary financing opportunities needed to grow their businesses and boost our economy. We believe these will help increase the level of SME activity and create a culture of entrepreneurship in the country,” he said.
Meanwhile, Prime Minister Saara Kuugongelwa-Amadhila while delivering her keynote address noted that initiatives like the FNB Credit Guarantee Schemes for SMEs are crucial in empowering young entrepreneurs to realise their dreams.
This comes on the backdrop of the harsh reality of youth unemployment startlingly at 46.1%.
“The FNB Credit Guarantee Schemes for SMEs have provided financial assistance to young entrepreneurs, creating employment, entrepreneurship development and economic growth. This has enabled young Namibians to take their rightful place in building a prosperous nation,” she said.
NIPDB’s Executive Director for MSME development Dino Ballotti said increased access to finance through innovative financing models can foster MSME development.
He cited financing models such as venture capital, angel investing, and crowdfunding.
“MSMEs can benefit from enhanced business development services, training, and mentorship programmes to increase their growth and competitiveness in the global marketplace,” he said.
This comes as MSMEs in Namibia face a variety of challenges, including limited access to finance and credit, lack of technical skills, limited market access, and regulatory constraints, according to Balloti.
Thus, he called for extra efforts from all stakeholders to assist MSMEs.
