On Monday, 10 September 2007 the Government of the Republic of Namibia and the German KfW Development Bank signed an agreement for EUR 300,000 (NAD 2.9 million) under the Namibian-German financial sector development programme. The overall programme will improve the access to financial services for micro, small and medium enterprises as well as for individual citizens.
The specific agreement was for continued support of NamPost Savings Bank’s introduction of a country-wide internal payment and smartcard system. The Namibian Government and KfW Development Bank agreed to finance further training measures to strengthen the bank staff’s software skills in order to optimize service for the Bank’s clients. Future investments of NamPost to increase service level and products will receive further support from German Financial Cooperation.
Other components of the financial sector development programme will be signed in the near future. Both sides renewed their pledge support for the establishment of a bank for micro and small enterprises and ordinary people that will offer a full range of affordable financial services (e.g. credit, saving and money transfer). The bank will continue the successful business of Koshi Yomuti, the leading provider of finance for micro businesses in Namibia.
In support of Namibian small and medium enterprises, KfW Develop-ment Bank will provide a credit line of EUR 2.5 million (NAD 24.3 million) to the Development Bank of Namibia (DBN). This credit line may be increased up to EUR 7.5 million (NAD 72.9 million) based on demand and institutional capacity at a later stage. Both sides also agreed to finance training measures to further strengthen DBN’s capacities in future.
KfW Development Bank. On behalf of the German Federal Government, KfW is promoting social and economic development world wide. KfW has been active in development finance for more than four decades and has a current portfolio in more than 100 countries. It therefore offers its development partners not only financial means but also the required expertise to successfully transfer funds into development impacts.
Contact: Mr. Olof Cramer, KfW Office, Schwerinsburg St. 7, P.O. Box 21223, Windhoek.
Tel.: +264 (61) 226853,
Fax: +264 (61) 223956.