Bank of Namibia and the Ministry of Finance and Public Enterprises have re-launched the SME Economic Recovery Loan Scheme.
This scheme was created with the aim of rescuing the SME sector, which was hit hard by economic headwinds, particularly the COVID-19 pandemic.
The COVID-19 pandemic, depressed profits, and financial losses due to COVID-19 and further coupled with the global economic recession and geopolitical tensions.
The buying power within communities has diminished, and this has resulted in a deteriorating state of affairs for many SMEs.
As a result of this impact, banks and the government had the COVID-19 SME relief package to keep the sector afloat.
The criteria for participating in the scheme have been revised to accommodate all SMEs.
Bank of Namibia Governor Johannes !Gawaxab emphasized that the SME sector is crucial to the country's economic recovery and job creation.
SMEs are said to represent about 90 percent of businesses and more than 50 percent of employment in Namibia.
Finance Deputy Minister Maureen Hinda-Mbuende reiterated the government's commitment to revive the SME sector and weather the economic storm.
The loan will be used to support their operations, pay salaries, purchase raw materials, and make other necessary investments.
It is hoped that the SME Economic Recovery Loan Scheme will provide a much-needed lifeline for small businesses in Namibia and help revive the SME sector, creating jobs and boosting the economy.
The scheme is worth N$500 million, and N$6.5 million have already been used.
Eligible SMEs are urged to inquire through commercial banks and make use of the scheme.