Banks’ project dishes out millions in year

THE partnership between the Development Bank of Namibia (DBN) and Bank Windhoek to boost emerging small firms has seen an amount of N$30 million, which had been earmarked for a period of three years, granted as loans in just over a year.

In August last year, the Government-owned DBN committed N$30 million over a period of three years until 2008 towards a joint programme with Bank Windhoek to provide medium-term finance to emerging SMEs, and N$10 million of the total would be advanced yearly. However, the last N$10 million was extended yesterday after the initial funding was handed out last year, and the second N$10 million went out in May.At a press conference held in Windhoek yesterday, DBN Managing Director David Nuyoma could not say whether his organisation would pump more money into the project.He said the DBN board would sit on the issue and find a way forward, after saying that the project had made progress and that they had been astounded by its success.”The strides made in the past year show that together we can really do better.Continuing at the same rate over the next three to five years will certainly change the face of financing in Namibia and avail an important vehicle for growth for SMEs.”Over the 13 months, Bank Windhoek has lent over N$23 million to small businesses.The public private partnership has been able to provide funding to 29 beneficiaries and has created employment for 212, read a joint statement made by the two banks.The majority of the projects which benefited are from the wholesale and retail sector.Bank Windhoek Managing Director James Hill said realising that SME operators had a serious lack of business management skills, his company had taken a different route of also providing mentorship programmes aimed at providing business support and developing the capacity of the informal sector.However, the last N$10 million was extended yesterday after the initial funding was handed out last year, and the second N$10 million went out in May.At a press conference held in Windhoek yesterday, DBN Managing Director David Nuyoma could not say whether his organisation would pump more money into the project.He said the DBN board would sit on the issue and find a way forward, after saying that the project had made progress and that they had been astounded by its success.”The strides made in the past year show that together we can really do better.Continuing at the same rate over the next three to five years will certainly change the face of financing in Namibia and avail an important vehicle for growth for SMEs.”Over the 13 months, Bank Windhoek has lent over N$23 million to small businesses.The public private partnership has been able to provide funding to 29 beneficiaries and has created employment for 212, read a joint statement made by the two banks.The majority of the projects which benefited are from the wholesale and retail sector.Bank Windhoek Managing Director James Hill said realising that SME operators had a serious lack of business management skills, his company had taken a different route of also providing mentorship programmes aimed at providing business support and developing the capacity of the informal sector.