DBN secures nearly half-billion loan from Germany
The interest reduced loan of about N$455 million will provide loans to non-agricultural SMEs that have experienced significant losses of income as a result of the pandemic.
08 January 2021 | Economics
The Development Bank of Namibia (DBN) and the Development Bank of Germany (KfW) signed an interest reduced loan of about N$ 455 million late last year.
The loan will refinance the DBN’s non-agricultural SME loan scheme which forms an integral part of Ministry of Finance “Economic Stimulus and Relief Package to Mitigate the Impact of Covid-19”.
DBN will provide the actual loans to non-agricultural SMEs that have experienced significant losses of income as a result of the Covid-19 pandemic.
The loan is backed by the government guarantee with the aim of promoting access to affordable finance for SMEs, especially during these unprecedented times.
“The extension of this loan facility comes as a good shot in the arm for the SME sector at this point in time. It is complementary to the suite of support packages extended to the SME sector as the engine of economic recovery, growth, jobs and wealth creation”, said finance minister, Ipumbu Shiimi.
The DBN forecasts that the funding offers much sought financial relief to around 200 SMEs. The DBN will customize the loans based on individual enterprise needs. Industries such as tourism, hospitality, and transport and logistics, having experienced the largest loss of revenue due to lock-down related effects nationally, regionally and globally will be prioritized.
The highly valued support will contribute to preserving continuity of SME business activities and build a foundation for recovery, said CEO of DBN, Martin Inkumbi. Although the Bank will, through its normal SME lending window give attention to startups, the overwhelming priority for this Covid-19 relief measure loans will be to preserve business continuity and hopefully preserve jobs.
“We are proud to able to support the Namibian economy with affordable access to credit for businesses in Namibia affected by the Covid-19 pandemic and by this, to support employment and income opportunities during and after the Corona crisis", said Barbara Pirich, director of the Development Bank of Germany (KfW).