Launched Credit Guarantee Scheme set to empower SMEs
In a landmark event held at the Nampower Convention Centre, Hon Ipumbu Shiimi, the Minister of Finance and Public Enterprises, lauded the inauguration of the FNB Namibia/NASRIA Credit Guarantee Scheme, emphasizing its potential to revolutionize the landscape for Micro, Small and Medium (MSM) enterprises.
The scheme is poised not only to bolster the MSM sector but also play a pivotal role in addressing the pressing issue of youth unemployment.
Shiimi underscored the critical role of a well-functioning financial sector in driving economic prosperity. The government, he noted, is steadfast in its commitment to promote financial inclusivity, ensuring that every Namibian has equitable access to financial services.
Citing research, Shiimi highlighted that MSM enterprises in Namibia face hurdles in securing credit, often due to a lack of the requisite collateral.
He stressed that MSM enterprisess are the lifeblood of the economy, driving innovation, job creation, and community growth. The government’s dedication to addressing these challenges led to the formulation of a comprehensive strategy bolstering the financial sector and facilitating access to financing for MSM enterprises.
The Financial Sector Strategy, implemented between 2011 and 2021, marked a pivotal step in this direction. It encompassed initiatives like the establishment of the Credit Guarantee Scheme and the introduction of mentorship and coaching programmes, while efforts to launch a Venture Capital Fund in Namibia remain underway.
The scheme is designed to provide assurance and guarantees to financial institutions, ensuring funding for aspiring entrepreneurs. Formerly operated in collaboration with the ministry and managed by NASRIA in partnership with the Development Bank, the scheme now falls under the direct administration of NASRIA as the underwriter.
Shiimi commended FNB Namibia and NASRIA for this initiative. Under the theme “Youth and Women Entrepreneurship Beyond Collateral: Unlocking Boundless Potential,” the partnership focuses on the underserved segments of the population namely the youth and women.
