N$20 million SME financing strategy inked
The Bank of Namibia and the Development Bank of Namibia signed a Memorandum of Agreement that will operationalise Government’s SME Financing Strategy.
Approved by Cabinet, on 6 June 2018, the Strategy comprises of three interlinked facilities namely, Mentoring and Coaching Programme, Credit Guarantee Scheme and the Venture Capital Fund. In this regard, the Board of Directors of the Bank of Namibia approved N$20 million for implementation of the Strategy.
The SME Financing Strategy which originated from the Namibia Financial Sector Strategy (NFSS) is aimed at addressing limited access to finance and support services for SMEs in Namibia. This has also been identified as one of the priority areas in the Harambee Prosperity Plan; the National Development Plan and Vision 2030.
In accordance with Cabinet directive, the SME Financing Strategy is being spearheaded by the Ministry of Finance, the custodian of the NFSS. The Ministry of Finance has further delegated the administration of the facilities under this Strategy to the Development Bank of Namibia.
Furthermore, the Development Bank has already commenced preparing for the implementation of the Strategy, which it will introduce in stages depending on funding availability. The public and targeted beneficiaries will be duly informed once all modalities have been put in place.