The government has disbursed N$398.8 million to over 360 businesses by September 2024 through its SME Recovery Loan Scheme.
According to Minister of Finance and Public Enterprises Ipumbu Shiimi, the funding aims to support economic recovery, enabling small and medium enterprises (SMEs) to regain stability, expand their operations, and drive job creation amid ongoing challenges.
“The government continues to prioritise small and medium enterprises as a catalyst for economic transformation and development with various impactful interventions. In this regard, the Small and Medium Enterprises Recovery Loan Scheme continues to gather momentum, with disbursements increasing to N$398.8 million by the end of September 2024 benefitting more than 360 SMEs,” he said.
He further explained that the Environmental Investment Fund (EIF) launched the Green Credit Facility to further support green SMEs and youth-led enterprises, distributing N$70 million to 118 SMEs and planning an additional N$100 million to bolster green entrepreneurship.
Additionally, Shiimi also said the Venture Capital Fund (VCF) will provide equity capital to growth-oriented SMEs.
He said the Board of Trustees for the VCF has been appointed, and the Fund is set for formal launch before the fiscal year-end.
“We continue to make progress on the implementation of the Venture Capital Fund, which is aimed at providing patient equity capital for growth-oriented SMEs to scale up their activities with the view to help create much-needed jobs in the economy,” he said.
He also emphasised that the Ministry of Industrialisation and Trade is also aiding SMEs through its Equipment Aid Scheme, which supported over 3,000 businesses in 2023, with applications for this year open until month-end.
Furthermore, Shiimi said the Credit Guarantee Scheme (CGS) has gained the participation of major commercial banks, providing financing options for SMEs lacking collateral.
“Accordingly, all qualifying SMEs who do not have the required collateral when seeking financing from financial institutions are urged to make use of the CGS,” he said.
