Windhoek — NamPost, the Development Bank of Namibia (DBN) and PostFin, a subsidiary of Namibia Post Limited (Nampost), signed a finance agreement on November 12, where DBN would finance PostFin's micro-lending service.
The agreement would further enable PostFin to expand its financing services nationally. DBN will advance a N$30 million line of credit to PostFin to extend loans of between N$1000 and N$40 000 to micro entrepreneurs and individuals. The PostFin micro-lending service has operated in Windhoek since 2010. PostFin would 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.
In terms of the agreement, PostFin will use the DBN credit line to finance small businesses, housing and education.
The micro-lending agreement builds on the existing relationship between NamPost and 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 hard to access areas.
"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," said DBN Head of Lending, Martin Inkumbi.
He 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," said Inkumbi.