DBN invests N$30m to aid SMEs

AS the Bank Windhoek mentorship programme for small and medium businesses (SMEs) takes off, the commercial bank has partnered with a Government financial institution to further contribute towards developing the sector of emerging entrepreneurs.

Yesterday saw the official launch of the partnership between Bank Windhoek and the Development Bank of Namibia; an initiative meant to deliver affordable medium-term finance to emerging small and medium enterprises (ESMEs). The Development Bank of Namibia will invest N$30 million over a period with Bank Windhoek, which will then channel the funds to local entrepreneurs seeking start-up capital through the bank’s ESME branch.In the same vein, the Development Bank is supporting Bank Windhoek’s mentorship programme for its ESME clients.DBN will provide a line of credit and Bank Windhoek will be responsible for the appraisal of applications, advancement of loans, management of accounts and the delivery of the mentorship programme.Both institutions will be responsible for marketing the partnership and its products.Bank Windhoek’s ESME National Manager, Kauna Ndilula, said the partnership was a leverage of the banks’ resources to boost the SME sector.She said the venture would provide medium-term SME finance in the range of N$250 000 to N$3 million.Ndilula said SMEs that qualified for this programme had to be less than three years old, prove financial viability, value addition to products, creation and retention of employment and have the potential to have positive social and economic impact.DBN Chief Executive Officer David Nuyoma and Bank Windhoek’s Managing Director James Hill agreed that the SME sector played an important part in the economic growth of Namibia; but was still underdeveloped in many aspects, and required more than just financial support.”Bank Windhoek, like its partner, the Development Bank of Namibia, is committed to the economic and social upliftment of all Namibians.We believe that by developing entrepreneurs our economy will grow, thereby enlarging the size of the national cake to be shared by all Namibians.”It is important that we encourage businesses that generate new wealth and new opportunities for the benefit of all Namibians,” said Hill.The Development Bank of Namibia will invest N$30 million over a period with Bank Windhoek, which will then channel the funds to local entrepreneurs seeking start-up capital through the bank’s ESME branch.In the same vein, the Development Bank is supporting Bank Windhoek’s mentorship programme for its ESME clients.DBN will provide a line of credit and Bank Windhoek will be responsible for the appraisal of applications, advancement of loans, management of accounts and the delivery of the mentorship programme.Both institutions will be responsible for marketing the partnership and its products.Bank Windhoek’s ESME National Manager, Kauna Ndilula, said the partnership was a leverage of the banks’ resources to boost the SME sector.She said the venture would provide medium-term SME finance in the range of N$250 000 to N$3 million.Ndilula said SMEs that qualified for this programme had to be less than three years old, prove financial viability, value addition to products, creation and retention of employment and have the potential to have positive social and economic impact.DBN Chief Executive Officer David Nuyoma and Bank Windhoek’s Managing Director James Hill agreed that the SME sector played an important part in the economic growth of Namibia; but was still underdeveloped in many aspects, and required more than just financial support.”Bank Windhoek, like its partner, the Development Bank of Namibia, is committed to the economic and social upliftment of all Namibians.We believe that by developing entrepreneurs our economy will grow, thereby enlarging the size of the national cake to be shared by all Namibians.”It is important that we encourage businesses that generate new wealth and new opportunities for the benefit of all Namibians,” said Hill.