Minister of Mines and Energy Tom Alweendo has urged financial institutions in Namibia to take a more proactive role in supporting entrepreneurship by providing capital, while striking a balance between risk aversion and investment.
He highlighted that extreme caution has clouded even the largest financial institutions, which are meant to serve as engines for growth, rather than merely acting as safeguards of security.
“We therefore need financial institutions that are willing to be involved, the ones that burn risk with opportunity, the ones that invest in financial products that undersell businesses, and that also take a proactive role in driving development,” he said.
The Minister emphasised the importance of fostering venture capital systems and macro-finance initiatives to ensure that small enterprises have access to affordable credit.
He also highlighted the role of technology in expanding financial inclusion, ensuring that entrepreneurs are not excluded from opportunities due to outdated models of credit assessment.
“It often means embracing technology to expand financial inclusion, so that no entrepreneur is locked out of opportunity, simply due to some bureaucratic barriers or some outdated models of credit assessment,” he added.
While calling for a greater effort from financial institutions, Alweendo also acknowledged the role of government in creating an enabling environment for investment.
He stressed the need for policymakers to empower financial institutions to take calculated risks by providing incentives or guarantees that encourage responsible lending.
“We need to create environments where financial institutions feel empowered to take calculated risks, whether through guarantees or with incentives, or some form of frameworks, that promote responsible lending without startling ambition,” he stated.
The Minister stressed that no economy can grow without investment and that financial institutions play a key role in driving this process.
He noted the importance of shifting the mind-set from risk aversion to opportunity recognition, as the free flow of capital to those who need it most would help unlock potential across various sectors.
“The reality is really simple. No economy can grow without investment, and no investment can thrive without financial institutions that are willing to step forward as true partners in development,” Alweendo remarked.
He further called on financial institutions to see themselves not only as protectors of capital but as catalysts for economic progress.
“I would therefore like to chime in with our financial institutions to know more, and also to be more, and to see themselves not just as protectors of capital, but also as capitalists for progress. Capital drives innovation, supporting infrastructure development, in the process of creating jobs,” he explained.
The Minister delivered these remarks at a business breakfast hosted by Stanlib Namibia that brought together stakeholders in the financial and energy sectors to discuss the intersection between finance, energy, and mining in a changing world.
