The Development Bank of Germany and Development Bank of Namibia have signed a loan agreement amounting to about N$455 million to support non-agricultural small and medium enterprises that have experienced significant losses of income due to the COVID-19 pandemic. According to a media release issued by the German embassy on Wednesday, the reduced interest loan agreement for €25 million was signed in December. The loan will be used to refinance DBN’s non-agricultural small business loan scheme, which forms an integral part of the Ministry of Finance’s economic stimulus and relief package, to mitigate the impact of COVID-19. “Industries such as tourism, hospitality and transport and logistics, having experienced the largest loss of revenue due to lock-down related effects nationally, regionally and globally, will be prioritised,” the statement said. It further noted that although the DBN will, through its normal SME lending window, give attention to start-ups, the overwhelming priority for the relief measure loans will be to preserve business continuity and hopefully, preserve jobs. “The relief measure is aimed at supporting cash flow and continued economic productive activities. The loans can also be used for investing in new business areas that help to strengthen the resilience of companies for future shocks,” the statement read. The loan builds on COVID-19 related support provided via technical cooperation implemented by GIZ in partnership with the Ministry of Industrialisation and Trade and Ministry of Finance, which targets start-up businesses and SMEs. “Beyond its emergency support character, the credit line complements the existing German-Namibian development cooperation in the focal area of sustainable economic development and contributes to the promotion of broad-based economic growth supported by the private sector.” Germany has so far provided N$850 million to Namibian partners to fight the pandemic and to mitigate the respective challenges on livelihoods and businesses in Namibia. Finance ministry spokesperson Tonateni Shidhudhu confirmed the loan agreement, saying it was signed by the two development banks late last year. -NAMPA