NamPost gets concessional loan of N$235 million to microfinance pensioner services
Public financial institution, the French Development Agency disbursed a concessional loan of N$235 million loan to finance the growth of NamPost’s microfinance business, specifically targeting NamPost’s microfinance activities aimed at pensioners.
The loan which is on-lending to PostFin, also supports PostFin’s strategy of targeting more vulnerable and underbanked segments of the Namibian population and reach a market share within pensioners of about 20 to 30% over the next five years.
At a press event this week, French Ambassador to Namibia Claire Bodonyi, said the loan will promote financial inclusion in Namibia by reaching out to thousands of pensioners who are considered as not bankable for credit reasons, by banks and microfinance institutions.
“It (the loan) will contribute to the socio-economic resilience of Namibia and will, to a certain extend, mitigate the effects of the Covid-19 crisis which makes access to financing even more challenging,” said Bodonyi.
The French agency is also discussing with NamPost to provide technical assistance to the maximum value of EUR 200,000 (approximately N$ 3.8 million) to increase PostFin’s practices in terms of client’s protection, and support the diversification of its products, as well as cooperate with other microfinance stakeholders in Africa.
“I strongly believe that pensioners have a great role to play in our society. This partnership with the French Development Agency, coupled with the expertise of our subsidiary, PostFin in providing financial services to low-income populations, will enable us to support pensioners who wish to launch small business or simply improve their living conditions and those of their family members”, Festus Hangula, CEO of NamPost, said.
Financial inclusion for individuals has increased remarkably in recent years and Namibia stands out for the high percentage of banked individuals. However, a significant part of the country’s more than 150,000 pensioners remain a largely financially excluded segment and often overlooked by banks and microfinance institutions.
