Africa-Press – Namibia. SMALL businesses need support as they navigate the impacts of the Covid-19 pandemic, economic challenges, and the climate crisis, says First National Bank Namibia (FNB) commercial head Thomas Iindji.
He says micro, small and medium enterprises (MSMEs) are the hardest hit by the multiple shocks, and at the same time play a critical role in the nation’s economic recovery.
Iindji said this at an information session with MSMEs from northern towns at Ongwediva on Monday.
“As the backbone of our society, MSMEs significantly contribute to the national economy by sustaining livelihoods, in particular among the underpriviledged, women, youth, and vulnerable groups,” he said.
FNB has partnered with the Ministry of Finance and Public Enterprises as well as the Bank of Namibia (BoN) on the MSMEs’ economic recovery loan scheme, which is aimed at stimulating economic growth through additional funding.
Iindji said this partnership will help to grow the Namibian economy and foster job creation.
“We believe this scheme allows us to continue honouring our obligation to our customers, while using our credit extension capabilities as a conduit for government support of businesses.
“This financial support will allow many businesses to optimise their operations to withstand the current economic pressures,” he said.
Iindji said many small businesses have suffered great losses during the Covid-19 pandemic and are therefore still in financial distress.
The loan recovery scheme will allow SMEs to borrow a minimum of N$50 000 and a maximum amount of N$10 million per borrower.
Iindji said the turnover threshold has also been increased from N$10 million to N$60 million.
“We are not in the business of shutting down businesses countrywide. We want to encourage all business owners, even those that are in financial distress, to approach our financial institutions to see how we can assist them and ensure that they get detailed information on the loan recovery scheme.
“We want to meet them halfway and grow the economy together,” he said.
A number of SMEs which attended the information sharing session expressed their disappointment with the government, asking why it is only now coming up with loan recovery schemes.
Aina Johannes, an SME owner from Ongwediva, said: “During the pandemic, our businesses suffered financial losses and the government could not assist us. Our businesses closed down because we could no longer continue working on a loss.
“When we needed financial support the most, the government and all the financial institutions were nowhere to be seen, and many closed their doors in our faces.
“We are grateful for the assistance even though we are disappointed.”
For More News And Analysis About Namibia Follow Africa-Press
