PM urges banks to fund youth and women-led companies

Prime minister Saara Kuugongelwa-Amadhila has encouraged financial institutions to fund youth and women-led companies to contribute to the country’s economy.

She said this at an event hosted by First National Bank in Windhoek on Monday.

Women-owned companies should also get financial assistance and access to markets for their products, and more diverse exposure in terms of types of businesses and regional distribution, Kuugongelwa-Amadhila said.

Kuugongelwa-Amadhila also called on the corporate sector to provide shelf space for local products and engage in manufacturing and value addition to optimise job creation, reduce the country’s reliance on imports and reduce the vulnerability of the economy to external shocks due to dependence on primary products.

“I encourage our young people, especially, to optimise the offered opportunities to engage in business. For small and medium enterprises (SMEs) to thrive and optimise their contribution to economic growth and job creation, access to financial services and financing is vital.

“As the economy starts to recover from the Covid-19 induced downturn, it is important that the financial sector renders appropriate support to businesses and thus supports the full recovery of the economy and it propels it to a higher growth trajectory, while addressing the inequities and strengthening resilience of the economy to external shocks,” she said.

The SME sector plays an important role in any economy, Kuugongelwa-Amadhila said, since it is a significant contributor to job creation, poverty eradication, economic growth and economic self-reliance.

Kuugongelwa-Amadhila said the government has adopted a multifaceted strategy to support SME development including a financing and credit scheme and a mentorship programme. This development complements the tender reservation under the public procurement process for Namibian entities, aimed at providing an off-take market for locally produced goods and services.

Speaking at the same event, FNB Namibia commercial banking executive officer Sepo Haihambo said they partnered with various state agencies such as the finance ministry and the Bank of Namibia to fund small businesses.

“We are committed to growing the economy and contributing to job creation. We are proud to have partnered with the Namibian Business Angels Network. This partnership will help SMEs to develop the skills and expertise they need to succeed in today’s competitive business environment,” Haihambo said.

To date, over N$128 million in credit (both in working capital and term loans) has been extended since the inception of the SME Score Credit in November of 2021, Haihambo said.

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