Development Bank’s non-agricultural small business loan scheme gets N$455 million shot in the arm from Germany
The Development Bank of Namibia (DBN) and the Development Bank of Germany (Kfw) recently inked a loan agreement worth approximately N$455 million, to provide refinancing for DBN’s non-agricultural small business loan scheme.
DBN will provide the actual loans to non-agricultural SMEs that have experienced significant losses of income as a result of the Covid-19 pandemic. The relief measure is aimed at supporting cash flows and continued economic productive activities and for investing into new business areas that help strengthening resilience of companies for future shocks. The loan is backed by the government guarantee.
“The extension of this loan facility comes as a good shot in the arm for the SME sector at this point in time. It is complementary to the suite of support packages extended to the SME sector as the engine of economic recovery, growth, jobs and wealth creation,” said Ipumbu Shiimi, Minister of Finance.
DBN forecasts that the funding offers much sought financial relief to around 200 SMEs. Industries such as tourism, hospitality, and transport and logistics, having experienced the largest loss of revenue due to lock-down related effects nationally, regionally and globally will be prioritized.
“The highly valued support will contribute to preserving continuity of SME business activities and build a foundation for recovery,” said CEO of DBN, Martin Inkumbi. “Although the Bank will, through its normal SME lending window give attention to startups, the overwhelming priority for this Covid-19 relief measure loans will be to preserve business continuity and hopefully preserve jobs.”
“We are proud to able to support the Namibian economy with affordable access to credit for businesses in Namibia affected by the COVID-19 pandemic and by this, to support employment and income opportunities during and after the Corona crisis”, said Barbara Pirich, director of the KfW Windhoek office.
f.l.t.r: Nicky Mutenda (DBN), Hanri Jacobs (DBN), Martin Inkumbi (CEO DBN), Barbara Pirich (Country Director KfW), Gerlinde Sauer(German Embassy), Andrea Uhl (KfW) at the signing ceremony in Windhoek on 17 December 2020.