SME Bank, which was founded by the government of Namibia in 2012, is preparing to receive NAD 630 million (USD 58.7 million) in non-reimbursable funding from the government of Namibia to expand its operations to all 14 regions of the country, with the intention of fueling growth among the small and medium-sized enterprises.
SME Bank, which is 51-percent held by the government, has one office in the capital city Windhoek and initially plans to open branches in the township Katutura, the town of Ongwediva and the town of Rundu. Tawanda Mumvuma, the CEO of SME Bank, is reportedly confident in the future of SME Bank because of the bank’s history collecting loan repayments as well as the growth in number of customers. During SME bank’s first 16 months of operations, 5,000 customers have made deposits, approximately 1,000 have applied for loans, and the value of the bank has reached NAD 40 million (USD 3.74 million).
By Sarah Luo, Research Associate
About SME Bank
SME Bank is a commercial bank based in Windhoek, Namibia that the Namibian government founded in 2012. SME Bank provides personal banking, corporate banking, and treasury and investment management services for small and medium-sized industry enterprises, rural communities, microenterprises, and previously disadvantaged individuals. The CEO of SME Bank is Tawanda Mumvuma as of 2014. As of the same year 2014, the Bank plans to expand from one branch to serve all 14 regions of the country.
Sources and Additional Resources
All Africa: Namibia: SME Bank Readies for N$630 Million Expansion
The Namibian: SME Bank Open for Business
MicroCapital, February 17, 2014: Switzerland’s State Secretariat for Economic Affairs (SECO) Commits $9m to Sanad Fund to Support Micro-, Small and Medium-Enterprises (MSMEs) in the Middle East and North Africa (MENA)
MicroCapital, December 7, 2012: Development Bank of Namibia Loans $3.4m to PostFin To Fund Rural, Small and Medium-Sized Enterprises
MicroCapital Universe Profile: SME Bank
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