Local banks have been called upon to play a proactive role in the development and funding of small and medium enterprises (SMEs).
President Nangolo Mbumba says another way is for the banks to involve more equity types of instruments and substantially lessen collateral requirements.
Dr. Mbumba's appeal was highlighted during an engagement with the banking executives in Windhoek today.
The president's engagement sought to also exchange ideas on the concerns around services and the financial exclusion of some industries previously deemed unbankable.
Cognizant of the role the banks play in ensuring the stability of Namibia's financial sector, Dr. Mbumba asserted the government's position to have funding initiatives broadened.
"Government would like to see banks becoming development partners whose sole motives should not just be profit but also social inclusion and mainstreaming of the unbanked segment of our society through innovative banking instruments such as mobile banking. We must continually ensure that our banking strategies align with the socio-economic context in which we are operating. Banks, just like any other company, should ensure that they contribute to the overall well-being of society by treating their workers well and providing them with all required benefits."
The Head of State further recognises that at present, banks actively foster and drive entrepreneurship and promote technological advancements.
As such, they have been going beyond the function of just lending and depositing money.
"How you discharge your functions, such as the provision of credit, managing payments, and facilitating savings and investments in a consistent and stable manner, engenders public trust and thus leads to stability in the system. It is not an exaggeration to say that without a well-functioning sector, the economy would grind to a halt."
Speaking on behalf of the banking executives, Nedbank's Managing Director, Martha Murorua, shared that the industry continuously employs approaches to remain resilient.
"Our leadership in the banking industry is instrumental in navigating the complexities of today's financial landscape, and today's gathering marks a significant step in our collective journey towards fostering economic financial inclusion and sustainable growth, it is an opportunity for us to engage in a meaningful dialogue, share insights, and explore collaborative pathways. We are at the pivotal moment, where the syneygy between government and us can unlock unparallel opportunities."
According to the Bank of Namibia, the country's banking sector is worth N$170 billion, while the market capitalisation on the Namibia Stock Exchange is N$20 billion.
The banking industry employs 60,000 people.