PRESIDENT Hage Geingob has called on financial institutions in the private sector, including banks, to stop demanding excessive collateral from entrepreneurs and share risks by funding new businesses.
Geingob made this call during the official opening of the Ehao Cultural Expo at Okahao on Saturday.
In a speech read on his behalf, the president urged financial institutions to share risks with entrepreneurs by funding new business ideas in untapped and previously unfunded economic areas in the country.
"Our financial institutions should start funding small and media enterprises (SMEs) in the sectors such as arts, crafts, leather processing, biltong production facilities, sports and film production, without asking unrealistic collateral amounts which are hindering new business ventures," Geingob urged.
He also asked financial institutions to reduce high bank charges to comparable levels with those in other developing economies.
"Because currently, these bank charges are stifling the growth of SMEs," the president noted, adding that the same prescription would apply to property owners who continue to charge SMEs exorbitant rental fees in this time of adverse economic changes.
Geingob further noted that the nation may continue to grow its economy if role players get new mindset of inclusivity towards new business ideas and SMEs.
The first edition of Ehao Cultural Expo in Okahao of Omusati region hosts businesses showcasing their products and services to prospective customers and service providers.
It started on Thursday and ends on Saturday, 29 June 2019.