The Small and Medium Enterprises (SME) Economic Recovery Loan Scheme disbursed N$462 million by the end of last year, representing 92.4% of the total allocated N$500 million.
According to the Bank of Namibia’s (BoN) 2024 Annual Report, the scheme, established by the central bank in collaboration with the then Ministry of Finance and Public Enterprises, aims to support SMEs through targeted financial interventions.
“The Scheme is a loan facility established by the Bank of Namibia in collaboration with the Namibian Government through the Ministry of Finance and Public Enterprises, aimed at reviving the Small and Medium Enterprises sector,” the report states.
The disbursed funds were channelled through four local commercial banks responsible for lending to qualifying SMEs.
The report highlights that as of 31 December 2024, nearly all allocated funds had been utilised.
However, “relative to 2023, activity under the scheme slowed during the period under review, as some participating banks had utilised their total allocations.”
Sector-wise, the construction, accommodation, and business services subsectors received the largest share of the funding.
The BoN noted that the geographical distribution of the loans was concentrated in the Khomas, Oshana, and Omusati regions.
Although the SME Loan Scheme targeted a specific group of borrowers, the central bank emphasised that recent monetary policy adjustments had broader economic implications.
“While this scheme targets a limited subset of borrowers, the repo rate reductions announced by the bank from August 2024 have reached all borrowers in the economy,” the report noted.
Furthermore, the BoN underscored the positive impact of inflation control measures.
“The benefits of the lower inflation that has been achieved similarly accrue to the economy in general,” the report added.
