First National Bank of Namibia (FNB Namibia) and Arch Resources have signed an agreement aimed at improving access to project finance for small and medium enterprises (SMEs) operating in Namibia’s construction and infrastructure sectors.
The partnership will combine FNB Namibia’s financial solutions with Arch Resources’ technical support, project vetting and monitoring to address financing constraints faced by SME contractors.
The companies said SMEs often struggle to secure financing because of limited collateral, short financial track records and cash flow constraints during project execution.
Under the Memorandum of Understanding (MOU), eligible SMEs may access structured financing and guarantees from FNB Namibia, while Arch Resources will assist with assessing projects and providing technical and monitoring support.
FNB Namibia Head of Small and Medium Enterprise Nesdha De Jongh said securing a contract does not necessarily mean an SME has sufficient financial resources to execute the project.
“For many SMEs, securing a project is only the beginning of the journey. The real challenge is often having the right financial support to successfully deliver that project,” De Jongh said.
Arch Resources operates as an SME support and project facilitation platform focused primarily on the construction and infrastructure sectors. Its services include project management support, quantity surveying, procurement assistance, mentorship and the facilitation of funding and guarantees for SME contractors.
The partnership will use Arch Resources’ technical expertise alongside FNB Namibia’s financial capabilities to assess viable projects and determine appropriate support for qualifying SMEs.
De Jongh said the initiative is intended to address challenges beyond access to funding.
“It is about understanding the project, understanding the business and creating solutions that can help SMEs navigate some of the barriers that stand between them and successful project delivery.”
The two organisations said access to finance alone does not guarantee successful project execution, with SMEs also requiring technical support, project oversight and appropriate financial solutions throughout the project lifecycle.
The partnership is expected to help participating SMEs strengthen their ability to execute projects and participate in larger construction and infrastructure value chains.
The MOU marks the start of cooperation between FNB Namibia and Arch Resources to identify eligible SME projects and develop financing and technical support arrangements for their implementation.
