The Development Bank of Namibia and the German technical cooperation agency GTZ recently signed a memorandum of understanding marking the beginning of their future cooperation. The main focus is support for small and medium sized enterprises (SMEs) in Namibia. This agreement underlines the commitment of both partners to provide SMEs with easier access to business development services like training, business consultancy, or marketing services. The Development Bank of Namibia and GTZ plan to involve private partners as well, such as banks and business consultants.

This agreement is part of the project "Partnership for Economic Growth (PEG)" agreed upon between Namibia and Germany in 2004. The programme aims at promoting economic growth in Namibia from which especially the formally disadvantaged Namibians will profit. The programme also focuses on the promotion of financial services in rural northern Namibia and the improvement of framework conditions to help stimulate economic develop-ment in Namibia. The programme works with various governmental and private stakeholders like the umbrella organisation for business service providers Joint Consultative Council (JCC). By 2008, the German Government will have contributed more than 20 Million NAD in support of this programme, said David Nujoma, MD of the Development Bank of Namibia.