The Namibia Special Risks Insurance Association has disbursed N$145 million to 153 small and medium enterprises under the government-backed Credit Guarantee Scheme aimed at helping businesses access loans without traditional collateral.
The insurer said the scheme has received a total of N$158 million since its launch, meaning most of the available funding has already been allocated to qualifying businesses.
NASRIA said the initiative is designed to support viable businesses that are unable to secure financing because they do not have sufficient collateral.
“The scheme supports bankable SMEs that are ready to take up loans but lack collateral. Risk is shared through a 60/40 arrangement between NASRIA, lending institutions and borrowers,” the institution said.
Under the arrangement, SMEs apply for funding through participating financial institutions, which assess applications based on their normal lending requirements.
Businesses are required to submit a bankable business plan and proof of registration to qualify. The scheme is open to both start-ups and existing businesses.
NASRIA said the programme specifically targets youth-owned businesses led by entrepreneurs aged 40 and below, women-owned businesses led by entrepreneurs aged up to 60, and SMEs generating less than N$10 million in annual turnover.
Participating financial institutions include Nedbank Namibia, First National Bank of Namibia, Standard Bank Namibia, Bank Windhoek, Development Bank of Namibia, Konga Financial Services and Bellatrix.
In 2024, NASRIA partnered with Bank Windhoek on a N$50 million facility under the scheme.
In 2023, Nedbank Namibia committed N$20 million, while First National Bank of Namibia extended N$83 million through its partnership with NASRIA.
The Credit Guarantee Scheme was introduced by the Namibian government in August 2020 to tackle one of the biggest barriers facing small businesses: access to finance.
