MICROCAPITAL BRIEF: Development Bank of Namibia Loans $3.4m to PostFin To Fund Rural, Small and Medium-Sized Enterprises

The Development Bank of Namibia (DBN), which has assets of NAD 1.6 billion (USD 183 million), recently disbursed the sum of USD 3.4 million to PostFin, a subsidiary of Namibia Post Limited (NamPost), to fund small and medium- sized enterprises in rural areas in addition to individuals seeking loans for housing and education. PostFin will use the proceeds to disburse loans in amounts ranging from NAD 1000 (USD 114) to NAD 40,000 (USD 4,580). PostFin’s microlending service has been operating in Windhoek since 2010, and will now be expanded countrywide.  DBN had previously funded NamPost in its efforts to implement electronic banking with biometric account management, which reportedly has improved access to banking in the country, particularly in smaller towns and remote areas.

The Head of Lending at DBN, Mr. Martin Inkumbi, reportedly noted that, “PostFin’s expansion will improve access to finance for small business owners and other community members who will not need to travel to bigger towns and Windhoek for loans. DBN is especially excited with the project, as small entrepreneurs based in rural areas will have access to direct finance, which will enable them to operate and grow their small businesses.” He also added that DBN endeavours to find additional delivery partners, particularly for the management of loans below NAD 1 million (USD 114,000) and to provide non-financial support to small businesses and microborrowers.

By Chioma Okwudiafor, Research Associate

About Development Bank of Namibia
The Development Bank of Namibia provides finance for enterprises and other initiatives that contribute to the development of Namibia. Founded in 1992 by an Act of Parliament, DBN provides finance for private sector start-ups and expansions, equity deals, bridging finance, enterprise development finance, trade finance, small and medium- sized enterprises and bulk finance to microfinance providers. DBN only finances Namibian projects. As of December 2011, DBN reported total assets of NAD 1.6 billion (USD 183 million) and its gross loan portfolio stood at NAD 1.3 billion (USD 149 million). The government of the Republic of Namibia is currently the sole shareholder of the bank.

About Namibia Post Limited (NamPost)                                       Namibia Post Limited (NamPost) is Namibia’s official postal service offering  financial and logistics solutions through its postal, banking, philately, agency and money transfer services. NamPost is a member of Namibia Post and Telecommunications Holdings. Nampost also has two subsidiaries, NamPost Financial Capital Brokers (Pty) Limited, which does business under the name PostFin and Smart Switch Namibia. Nampost has served Namibians for 119 years, as a government department before independence and now as a commercialized entity since 1992. PostFin offers personal loans, debt consolidation services and credit life assurance. As of 2011, NamPost group reported total assets of NAD 2.5 billion (USD 287 million).

About PostFin
NamPost Financial brokers (Pty) Limited trading as PostFin is a wholly owned subsidiary of NamPost. It was created as a conduit for NamPost to serve Namibians better by providing access to affordable financial services throughout the country.

Sources and Additional Resources:

The Namibian Story: POSTFIN Loans bring relief to rural areas in Namibia                                                          http://www.namibian.com.na/news/marketplace/full-story/archive/2012/november/article/postfin-loans-bring-relief-to-rural-areas-in-namibia/

MicroCapital story; July 16, 2012, “MICROCAPITAL BRIEF: Microloans in Namibia Grew an ‘Alarming’ 34% in 2011 to $183m”
https://www.microcapital.org/microcapital-brief-microloans-in-namibia-grew-an-alarming-34-in-2011-to-183m/

MicroCapital Story: November 21, 2012, “MICROCAPITAL BRIEF: First National Bank Namibia Releases Mobile Money Service”
https://www.microcapital.org/microcapital-brief-first-national-bank-namibia-releases-mobile-money-service/

MicroCapital Universe Profile:  Development Bank of Namibia (DBN)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Development+Bank+of+Namibia

MicroCapital Universe Profile: Namibian Postal Service Limited (NamPost)
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Namibia+Post+Limited+%28NamPost%29

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