The SME Economic Recovery Loan Scheme has disbursed financing worth over N$85.9 million in loans to 80 SMEs as part of concerted efforts to grow the sector.
The loans were disbursed to wide-ranging sectors, including hospitality, retail, import and export, and oil and gas.
The scheme was re-launched in response to the economic challenges posed by the Covid-19 pandemic and the lingering effects and is now instrumental in providing affordable financing to businesses in various sectors.
“The SME Economic Recovery Loan Scheme is starting to play a significant role in supporting the growth and sustainability of small and medium-sized enterprises (SMEs) in Namibia, with over N$85.9 million disbursed to 80 SMEs across the country, allowing them to continue operating while providing further impetus to the revival of the economy,” Bank of Namibia Director of Strategic Communications and International Relations, Kazembire Zemburuka said.
Zemburuka said that by providing much-needed capital, SMEs are given a shot in the arm and have created employment opportunities for Namibians who would have otherwise been jobless in the aftermath of the pandemic and geopolitical storms, which gave rise to inflationary pressures.
Zemburuka added that 200 SMEs have submitted applications for the loan scheme with 120 still undergoing review.
“Out of this number, 80 SMEs, with a total value of N$85.9 million, have been granted the loan, while the remaining 120 applications are presently undergoing review. The SMES hail from wide-ranging sectors, including hospitality, retail, import and export, and oil and gas,” he said.
Meanwhile, the Development Bank of Namibia is the latest institution to offer the Scheme for its existing clients.
The loan scheme is designed to support SMEs to promote economic recovery and involves the allocation of N$500 million to eligible SMEs.
As per the guidelines, according to Zemburuka SMEs can seek loans from N$50,000 to N$10 million.
“The loans are disbursed at a rate equivalent to the current prime lending rate, with a reduction of 50 basis points and less stringent conditions. The loans aim to assist businesses in paying for operational expenses such as salaries, rent and lease agreements, and contracts with suppliers,” he explained.
“We are encouraged by the positive impact of the Recovery Loan Scheme and recognize the pressing need for such assistance among SMEs in Namibia. The loans disbursed thus far are a testament to our commitment to supporting their revival and growth. We remain dedicated to ensuring the accessibility of the scheme to eligible SMEs across the nation,” stated Johannes !Gawaxab, Governor of the Bank of Namibia.
