Bank of Namibia approves new SME bank
Access to finance for small and medium-sized enterprises (SMEs) in Namibia looks set to improve.Access to finance for small and medium-sized enterprises (SMEs) in Namibia looks set to improve.
The Bank of Namibia (BoN) has given its approval to the establishment of a financial institution aimed primarily at these organisations, the New Era reports.
It is hoped the Small and Medium Size Enterprises Bank, or SME Bank as it will also be known, will help to resolve financing issues within this market.
Hage Geingob, the Namibian trade and industry minister, has confirmed that experts will keep a close eye on each aspect of its operations in order to ensure they deliver positive results.
"The bank will not ask for any security, as the projects themselves become security to the SME Bank," he commented.
Mr Geingob stated that this means the projects are "feasible through project monitoring".
BoN's approval of SME Bank comes after a slight delay, which came about as a result of the government having to meet certain regulatory criteria, as well as resolve issues regarding its shareholding structure.