SMEs credit guarantee agreement between FNB and AFD - 12 April 2011 [fr]
FNB Namibia and French Development Agency (AFD) seal agreement to benefit SME’s in Namibia
On 12 April 2011 FNB Namibia hosted a media conference at which the ARIZ SME Guarantee Facility Agreement between FNB Namibia and the French Development Agency (AFD) was officially signed, thereby sealing a historic smart partnership arrangement set to benefit the SME sector in Namibia.
The AFD will give a guarantee facility of about N$100 Million Namibian Dollars, with the aim to assist SME’s – both for start-ups and business expansion purposes.
The partnership entails that AFD will provide a SME guarantee facility of close to N$100 million. AFD will guarantee 50% of loans advanced by FNB to Namibian SMEs.
As part of the bank’s commitment to this partnership and more importantly to the development of the Namibian SME sector, FNB Namibia will endeavour to fully utilise this facility within the allocated two years and will certainly call on AFD to extend this facility beyond the initial first phase of the project. The decision to grant loans under this partnership will be at the discretion of FNB Namibia and in accordance with it’s SME Credit Policy and lending criteria.
"For AFD, the French state-owned development bank AFD, “SME financing” is a priority of development" said Mr DEBRAT, the regional representative of AFD. And Mr. ZOËL, Ambassador of France to Namibia, recalled that "development of private sector and job creation were central to the French development policy".
At the official signing ceremony Ian LEYENAAR, CEO of FNB Namibia, also said: “The importance of the SME sector in our country cannot be over-emphasized, especially when we consider that more than 51% of Namibians are unemployed, something that is of concern not only to our government but also to the private sector and civil society.”