By Staff reporter
Namibia and the German KfW Development Bank signed a N$2.9 million agreement under the Namibian-German financial sector development programme.
The overall programme would improve the access to financial services for micro, small and medium enterprises as well as for individual citizens.
The specific agreement was for continued support of NamPost Savings Bank’s introduction of a countrywide internal payment and smartcard system.
The Namibian Government and KfW Development Bank agreed to finance further training measures to strengthen the bank staff’s software skills in order to optimise service for the bank’s clients.
Future investments of NamPost to increase service level and products will receive further support from German Financial Cooperation.
Aino Moongo, Executive Secrtary of KfW office in Windhoek said in a statement other components of the financial sector development programme would be signed in the near future.
“Both sides renewed their pledge support for the establishment of a bank for micro and small enterprises and ordinary people that will offer a full range of affordable financial services such as credit, saving and money transfer,” she said.
The bank will continue the successful business of Koshi Yomuti, the leading provider of finance for micro businesses in Namibia.
In support of Namibian small and medium enterprises, KfW Development Bank will provide a credit line of N$24.3 million to the Development Bank of Namibia (DBN).
This credit line may be increased up to N$72.9 million based on demand and institutional capacity at a later stage. Both sides also agreed to finance training measures to further strengthen DBN’s capacities in future.
KfW Development Bank promotes social and economic development worldwide. It has been active in development finance for more than four decades and has a current portfolio in more than 100 countries.