Africa-Press – Namibia. THE French financing arm of the Agence Française de Développement Group recently signed an agreement for a Euriz portfolio guarantee of N$68 million to support the First National Bank of Namibia Limited in financing high-impact micro, small- and medium-scale enterprises.
The agreement was signed in Windhoek on 19 October 2021 in the presence of representatives from Proparco, FNB Namibia, AFD, the French embassy and the European Union delegation to Namibia. FNB Namibia is a long-standing partner of Proparco and the AFD Group, having already benefited from two portfolio guarantees in 2011 and 2014.
“Through this guarantee, Proparco seeks to contribute towards FNB Namibia’s efforts to support Namibian MSMEs (micro-, small- and medium-scale enterprises) operating in key sectors such as agriculture, health, education and climate, as well as youth and women-owned enterprises, and start-ups,” said a statement issued after the signing.
A significant proportion of the guarantee would focus on supporting those enterprises operating in the agricultural sector, in an effort to contribute to Namibia’s food security objectives.
“The guarantee will be coupled with a technical assistance facility designed to provide the financial institution’s customers’ capacity-building support,” the statement added.
Launched in May 2019, with the support of the European Union and the European Development Fund, and the Organisation of African, Caribbean and Pacific States, the Euriz guarantee aims to facilitate access to credit for such businesses, particularly in sectors with a high development impact, to help them play their essential role in economic growth and job creation.
It also forms part of Choose Africa, the French initiative dedicated to African entrepreneurs and MSMEs. By working with local financial institutions, the AFD Group contributes to strengthening financial markets and plays a counter-cyclical role by increasing funding for local economic actors so that they are more likely to overcome the consequences of the Covid-19 crisis.
In doing so, the project promotes local private sector development for sectors and segments that are essential in achieving sustainable and inclusive economic growth. Therefore, it will contribute to sustainable development goals to do with poverty eradication, providing decent work and economic growth, as well as reduced inequalities.
Speaking at the event, Sepo Haihambo, the executive officer FNB commercial, said: “Given our position as the leading financial services provider in Namibia, we understand that we have a responsibility to deliver both financial value and positive social outcomes for multiple stakeholders.
“These principles underpin the bank’s view that we must intentionally use core business activities, including our role in allocating capital to small business owners (particularly women), to add value to society. This partnership agreement is now in place to help fellow Namibians in MSMEs countrywide, to look to the future with enthusiasm and support,” Haihambo added.
Proparco has been promoting sustainable economic, social and environmental development for over 40 years. It provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the Middle East. Email: [email protected]
For More News And Analysis About Namibia Follow Africa-Press
