Development Bank, Investment Board partner on capacity building for SMEs
The Development Bank of Namibia (DBN) and the Namibia Investment Promotion Board (NIPDB) have formalized their cooperation with an agreement that seeks to harness the capacity of both agencies to further develop the SME sector.
DBN CEO, Martin Inkumbi, said the said by combining forces and seeking synergies through cooperating agencies, economic policy can be executed more efficiently.
He cited, for example, DBN’s implementation of the Credit Guarantee Scheme (CGS) which provides a collateral guarantee of 60% to SMEs seeking finance from participating commercial banks. He also mentioned a recent agreement with the Namibia Trade Forum (NTF) in terms in which Namibian enterprises will be assisted to further develop their products and services to prepare them for the market.
Dino Ballotti, NIPDB Executive Director responsible for MSME Development, said Innovation and Acceleration, the largest contributors to economic activity in successful economies across the world are Micro, Small, and Medium Enterprises, and there is no difference to that in Namibia. MSMEs play a significant role in our financial development, yet they face real challenges in the form of a lack of information and financial support.
Evidence demonstrates the scale and commercialization of the sector can be achieved through the development of smart partnerships, such as this one, which will further drive the MSME agenda and ensure that no one is left behind. Access to information and innovative practices that can scale enterprises remains fundamental where the excellent work of the Development Bank will only enhance the efforts of an inclusive, more competitive business environment.
Although Development Bank’s minimum loan amount is N$150,000 for registered enterprises- or N$50,000 for young professionals and artisans, it provides apex microfinance for on-lenders who provide enterprise loans in smaller amounts.