Namibia: SME Bank to receive more than €43 million to fund expansion plans

Jul 09, 2014

The SME Bank in Namibia is about to receive a N$630 million (€43.4million) envelope from the Treasury to allow it to increase the volume of loans granted to micro, small and medium-sized enterprises (MSMEs) in the country.

The SME Bank in Namibia is about to receive a N$630 million (€43.4million)
envelope
from the Treasury to allow it to increase the volume of loans granted to micro, small and medium-sized enterprises (MSMEs) in the country.

The bank has revealed plans to expand its outreach across the country's 14 regions, where phase one will involve the opening of three branches in Katutura, Ongwediva and Rundu, The Namibian reports.

"The plans have already been finalised and we are now awaiting formalisation of the processes by the respective regulator, that is the Bank of Namibia," said the bank's CEO Tawanda Mumvuma.

He added that while SMEs are traditionally and generally perceived as high risk, they can be supported with medium to long term
loans
through a developmental approach.

"In a one and
a
half year existence, we now have close to 5000 customers making bank deposits and are nearing our 1000th client on loan service. We are quite confident that with our planned branch network, the SME Bank will soon become the preferred Bank for the SME sector in Namibia", he concluded.

Namibian 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.ADNFCR-2976-ID-801734089-ADNFCR