FNB Namibia has partnered with the Development Bank of Namibia (DBN) on the risk sharing initiative, which was announced by the Minister of Finance, Hon. Iipumbu Shiimi on the 19 August 2020.
“Our government and FNB as one of the leading banks in the country, value this sector because of its great potential for the socio-economic development in terms of economic growth, employment creation and poverty alleviation,” Sam Ikela, Segment Head, Small Medium Enterprises at FNB said.
“The intention of the guarantee scheme is to alleviate the collateral constraints entrepreneurs are facing and it will cover loans up to 60%. The size of the loan facilities will range between N$50,000 to N$1,000,000 for both short term overdrafts and long-term loans with a maximum repayment period of five years.”
Qualifying criteria for the guarantee scheme include the following:
• SME’s annual turnover of up to N$10million
• SME is established and operating in Namibia and exclusively owned by Namibian nationals.
• Priority will be given to SME’s with development impact capabilities such as job creation, rural development, youth and women empowerment.
‘We know that domestic small and medium-sized enterprises (SMEs) are responsible for a great contribution to economic growth in our country. This year – more than ever – has shown that in unstable economic times entrepreneurs should recognise and grab any possible opportunities and work up the courage to establish their own business in their emerging home market,” he said.