On 15 November 2019, NamPost and KfW Development Bank signed an agreement for a concessional loan of NAD 325.02 million (EUR 20.0 million) to provide micro-loans to micro-, small- and medium sized companies and households in rural and remote areas via NamPost subsidiary PostFin.
Due to the excellent footprint of NamPost’s branch network, beneficiaries can be reached across the country. By enabling PostFin to greatly expand its loan book over the medium term, the funding directly supports poverty reduction and social progression; adequate financial products and access to finance create an enabling environment especially for micro and small entrepreneurs in the formal and informal sector. The funds provided within the German development cooperation aim at extending the respective access to finance for up to 28.000 households and micro-, small- and medium enterprises, with a special focus on women and disadvantaged persons. The agreement will be backed by a sovereign guarantee.
At the signing ceremony, KfW Windhoek outgoing Office Director, Dr. Uwe Stoll emphasized that “NamPost with its main objective to contribute to poverty reduction and social development can now more easily fulfill its part ‘to leave no one behind’!
Ms. Gerlinde Sauer, Counsellor for Development Cooperation, highlighted the importance of access to finance for private sector development and employment creation in Namibia. The financial cooperation of KfW and NamPost is to her view an important pillar of the German support to Namibia in the field of sustainable economic development as one of the focal areas of German development cooperation. It complements technical cooperation with MITSMED and MoF to support the implementation of ”Growth at Home“ and ”SME-Financing“ strategies respectively.
NamPost CEO Festus Hangula expressed gratitude to KfW for the longstanding beneficial relationship between the two institutions within the German Development Corporation that lasts for more than 14 years. Much has already been achieved with the shared vision of both institutions to make a difference in many Namibian lives which aims at providing solutions to the challenges of the future. He added that the funding would provide PostFin additional leeway to further develop and refine models and options that would assist in growing the PostFin’s portfolio of projects to address financial inclusion and responsible financing.
PostFin CEO Patrick Gardiner said that PostFin has a track record of providing micro-finance to Namibians, stretching back to PostFin’s inception in 2010 and specifically serves clients in the lower income groups who are partially or fully excluded by the formal banking sector.