POSTFIN, a subsidiary of NamPost, has secured a N$30 million line of credit from the Development Bank of Namibia (DBN) to fund small businesses in the rural areas, as well as individuals who need loans for housing and education.
The money will enable PostFin to grant loans from N$1 000 to N$40 000.
“PostFin's expansion will improve access to finance for small business owners and other community members who will not need to travel to bigger towns and Windhoek for loans. DBN is especially excited with the project, as small entrepreneurs based in rural areas will have access to direct finance, which will enable them to operate and grow their small businesses,” DBN head of lending Martin Inkumbi said in a statement yesterday.
The tripartite agreement between the DBN, NamPost and PostFin was concluded on Monday. PostFin's micro-lending service has been operating in Windhoek since 2010, and will now be expanded countrywide.
The micro-lending agreement builds on the existing relationship between NamPost and the DBN. NamPost previously used DBN finance to implement electronic banking with biometric account management, which has substantially improved access to banking in Namibia, particularly in smaller centres and remote areas.
PostFin will expand the service in a managed fashion through NamPost branches across the country. NamPost, through PostFin, has made it a priority to improve Namibians’ access to finance, especially for people who reside in rural areas.
Inkumbi said the DBN endeavours to find delivery partners, particularly for the delivery of smaller loans below N$1 million, and to provide support to small businesses and micro-borrowers. NamPost is a logical partner in this sense because of its extensive national branch network, which will result in making the service available to people in most parts of the country, he said.
“Projects that improve and diversify services to all Namibians aid the DBN in fulfilling its development goals, as aligned to the government national development goals, to provide access to finance in order to improve and upgrade their living standards and communities. The Bank would like to be more involved in these types of projects, looking at various sectors and offering people the opportunity to play a larger role in the economy,” concluded Inkumbi.