Bank Windhoek disburses N$50m to SMEs

Bank Windhoek has disbursed N$50 million in support of the government’s SME Economic Recovery Loan Scheme launched in February.

This was announced on Tuesday by the bank’s executive officer of business banking, Leon Koch, who encouraged small and medium enterprises (SMEs) to approach the bank for assistance.

“As a connector of positive change, we support the development of SMEs because they play a crucial role in the Namibian economy through value creation in various sectors and also assisting in reducing unemployment,” said Koch.

The SME Economic Recovery Loan Scheme is a government initiative introduced in partnership with several local banking institutions, including Bank Windhoek and the Bank of Namibia, to provide working capital to struggling SMEs.

“It aims to stimulate economic growth and job creation by providing additional funding to SMEs to enable them to pay their operational expenses and to retain and pay their employees,” he said.

Koch said Bank Windhoek will extend loans to qualifying SMEs at the prime lending rate of less than 0,5% with the obligation to repay the interest and capital deferred for six months from the day of signing the agreement.

He said the qualifying criteria are that the SME should have an existing relationship with Bank Windhoek through lending or transactional banking.

“They should also be a sole proprietorship registered business entity with the Business and Intellectual Property Authority. The SME should also have a maximum annual turnover not exceeding N$60 million,” he said.

Koch said SMEs can visit any Bank Windhoek branch in the country for applications.
– Email: matthew@namibian.om.na