FNB reaffirms commitment to SME development

FNB Namibia celebrated and reaffirmed its contributions to Namibian Micro, Small and Medium Enterprises (MSME) while also relaunching an updated SME Value Proposition to further expand SME success.

Speaking at the event, FNB Namibia Commercial Banking Executive Officer Sepo Haihambo highlighted SMEs as a catalyst for economic development that boost public revenue collection, creates employment, and provides goods and services to vulnerable and underserved segments of the population.

“At FNB, we are committed to growing the economy and contributing to job creation. We are proud to have partnered with the Namibia Business Angel Network (NABAN) to provide support to SMEs on skills and capacity building. This partnership will help SMEs develop the skills and expertise they need to succeed in today's competitive business environment. To this end, FNB Namibia has enabled businesses to deliver on our purpose of creating a globally competitive Namibia by committing funds to NABAN to host SME development focused events to the tune of N$100 000 per year for a period of 3 years starting January 2023, ending June 2025,” she explained.

She further added that FNB partnerships with the Developmental Financial Institutions (DFI) which include DBN/Nasria, French Development Agency (AFD) and the recently repurposed Scheme under the Ministry of Finance and Public Enterprises through Bank of Namibia (BoN). To date, these Schemes have thus far provided funding worth over N$243 million, benefiting over 520 customers - with some repeaters. These Schemes have also collectively created employment for 470 people.

“As we stand here, FNB Namibia has also successfully launched and implemented the SME Score credit designed to improve turnaround time when assisting SMEs with credit facilities. The SME Score credit is a full-function product that introduces a new level of speed and efficiency to the credit application process. The traditional, cumbersome method of applying for credit facilities often resulted in a long, grueling exercise for SMEs, which could take several weeks or even months. With the SME Score credit, the process is simpler, faster, and more efficient. We celebrate this achievement and look towards the future, where we will undoubtedly see more,” Haihambo said.

Capital

Since its inception in November 2021, the project has extended both working capital and term loans to the tune of over N$128 million in credit.

Namibia Investment Promotion & Development Board (NIPDB) Dino Ballotti said “Namibia, has an active, growing, and vibrant MSME sector, which speaks to the four main economic sectors. These sectors speak to the various industries which create our economy. Let us be mindful that these businesses are typically owned and operated by Namibian entrepreneurs who display the resilience, creativity, and determination to succeed, playing critical roles in stimulating our economic fiscus.”

“Looking ahead, there are several opportunities and strategies that can further foster MSME development in Namibia. These include increased access to finance through innovative financing models such as venture capital, angel investing, and crowdfunding. Moreover, enhancing business development services, training, and mentorship programs that can help MSMEs acquire the necessary skills to manage and grow their businesses effectively. Creating market linkages and expanding export opportunities for MSMEs can also boost their growth and competitiveness in the global marketplace,” he elaborated.

When delivering her keynote address, Prime Minister Saara Kuugongelwa-Amadhila applauded FNB for its contribution to the development of MSMEs in the country adding that the financial sector plays a significant role in supporting businesses. “As the economy starts to recover from a covid induced downturn, it is important that the financial sector renders appropriate support to businesses and thus support the full recovery of the economy and propels it to a higher growth trajectory, while addressing the inequities and strengthening resilience of the economy to external shocks.”

Accessibility

“I am glad to note that FNB has pledged its commitment to SMEs empowerment through a wide range of interventions such as a credit guarantee for SMEs that makes loan capital accessible to them; providing a wide choice of flexible and affordable banking products for SMEs; mentorship and coaching support and assisting SMEs with tenders without having to pledge collateral, instead of using cession of contract income amongst other initiatives,” she said.

Moreover, Development Bank of Namibia (DBN) Head: Business Strategy Heike Scholtz, shared Kuugongelwa-Amadhila’s sentiments adding that FNB Namibia was the first commercial bank to partner with Government on the SME Economic Recovery Loan Scheme which has provided a lifeline to businesses especially those owned by young people.

Also speaking at the same event, Deputy Minister of Sport, Youth and National Service Emma Kantema-Gaomas said that the FNB Credit Guarantee Schemes for SMEs have been instrumental in providing financial assistance to young entrepreneurs who would otherwise have found it difficult to access funding.

“The success of these schemes is a testament to the commitment of FNB to support the growth of small and medium-sized enterprises, especially those led by young people. I commend FNB for their dedication to creating an enabling environment for young entrepreneurs to thrive, thus contributing towards employment creation, entrepreneurship development and SME-driven economic growth at the back of the youthful demographic dividend so that young Namibians can assume their rightful place in building a “united, inclusive and prosperous Namibian House,” she said.