Namibia: IFC grants $68m loan to Bank Windhoek
The loan will help the bank support SME's access to finance.The International Finance Corporation has revealed it has granted a $68 million (€62 million) loan to Namibian institution Bank Windhoek in a bid to help it diversify its funding base, improve its maturity profile, and strengthen its liquidity and lending.
Christo de Vries, Bank Windhoek's managing director, said the loan facility "will empower the bank to increase its lending to small-scale enterprises, amongst others, which is a very important sector in Namibia's future economic growth and development."
Aliou Maiga, IFC Head of Financial Institutions Group for Africa, added: "IFC sees this investment as the start of a long-term partnership with Bank Windhoek that strengthens the banking sector in Namibia. Its broad reach in the market makes Bank Windhoek an ideal partner to expand access to finance for thousands of small-scale enterprises, contributing to job creation and economic growth."
Bank Windhoek is the second largest bank in Namibia with over 200,000 clients and a 28 per cent market share.
The loan will help improve access to finance for small businesses in Namibia - traditionally and generally perceived as high risk.
SMEs contribute about 12 per cent to GDP and employ about 20 per cent of the workforce, according to figures from the Institute for Public Policy Research.