The Bank of Namibia (BoN) says over N$350 million has been paid to small-to-medium enterprises (SMEs) through its SME Economic Recovery Loan Scheme.
The scheme, which was reinstated in February 2023, aims to assist distressed SMEs.
It provides funds through participating commercial banks, to eligible small businesses to assist in paying for operational expenses such as salaries, rent and lease agreements and contracts with suppliers.
BoN Governor, Johannes !Gawaxab, stated that N$500 million was allocated for the scheme, with N$100 million in reserves and N$400 million allocated to the commercial banks.
“There was approximately N$500 million allocated. Out of that sum, N$350 million has already been distributed. Currently, there’s a remaining pipeline of about N$40 million. This will bring the total to N$400 million if that N$40 million is disbursed. Additionally, we have N$100 million in reserve,” he said.
The Governor highlighted that the largest bank has fully utilised its N$200 million allocation, while the second bank is close to depleting its N$150 million fund.
Earlier, the loans were disbursed to 310 businesses operating in the construction, retail, manufacturing, and oil and gas industries by October last year.
This comes as Namibian SMEs face significant roadblocks in accessing lucrative international value chains, including innovation gaps, financial constraints, and global market barriers, according to a new report.
According to the United Nations Economic Commission for Africa (UNECA), SMEs are hindered by limited access to technology and financial constraints and struggle to navigate complex global markets.
The UNECA noted that stakeholders must unite to foster an environment conducive to SME development and resilience.
