DBN and Nampro Fund sign N.dollars 50 million MoU
12 Jul 2014 10:20am
WINDHOEK, 12 JUL (NAMPA) The Development Bank of Namibia (DBN) has signed a memorandum of understanding with the Namibian Procurement Fund (Nampro Fund) for the provision of working capital and asset finance to small and medium enterprises (SMEs).
DBN Chief Executive Officer Martin Inkumbi and chairperson of the NPF, Derek Wright signed the N.dollars 50 million agreement on behalf of the two parties here on Friday.
Inkumbi said the assistance will provide a helping hand to SMEs in Namibia to grow their business and contribute to the development of the country.
DBN is mandated to support economic activities in the country, and through the Nampro fund will make sure that SMEs are provided with loans to sustain their businesses, he said.
On his part, Wright said the support from the DBN confirms the notion that financial institutions can co-exist and work in a collaborative manner to deliver a more meaningful value chain of financial solutions to enterprises.
As an SME-focused fund that provides bridging financial facilities to SMEs, we are committed to taking this extended credit line of N.dollars 50 million to extend our reach to SMEs and enable such Namibian companies to become reliable suppliers of goods and services, he said.
Wright indicated that through the achievement of this objective, the fund will ensure that the beneficiaries become sustainable companies that are able to create and retain jobs.
The Nampro Fund is a bridging finance solution for SMEs experiencing high growth and is need of short-term finance to meet contract obligations.
The fund provides loans to SMEs that have secured supply contracts with reputable large corporates, parastatals, local authorities and government departments to supply goods, services, or to add value. Funding ranges from N.dollars 100 000 to N.dollars 32 million.