Martin Endjala
PostFin, the microlending arm and a subsidiary of Namibia Post Limited (NamPost) was recently boosted with a N$406 million loan following the signing of an agreement with Germany’s KfW Development Bank.
PostFin will use these funds to provide micro-loans to micro- and small-sized enterprises and households predominantly in rural and remote areas.
PostFin was created as a conduit for NamPost to better serve Namibians by providing access to affordable financial services throughout the country.
NamPost’s Chief Executive Officer, Festus Hangula, lauded KfW for the longstanding beneficial relationship between the two institutions and German Development Cooperation, which lasted for more than 18 years. Adding that much has already been achieved with the shared vision of both companies to make a difference in many Namibian lives which aims at providing solutions to future challenges.
He added that this second substantial funding would provide PostFin additional leeway to further develop and refine models and options, that will assist in growing PostFin’s portfolio of projects to address financial inclusion and responsible financing.
“Due to the excellent footprint of NamPost’s branch network, beneficiaries can be reached in rural and remote areas across the country.
By providing adequate financial products and better access to finance for the target group, the cooperation of KfW and NamPost aims to increase financial inclusion and support the social progression of PostFin’s clients to access funds for productive use,” said Hangula.
The funds which is provided by the German Ministry for Economic Cooperation and Development for financial sector development, it is said to enable the provision of up to 28,000 loans to household and micro and small enterprises, with a special focus on women and disadvantaged persons.
Meanwhile, KfW Director of Southern Africa, Dr. Thomas Duve, stated that NamPost with its main objective to contribute to poverty reduction and social development can expand its outreach and ensure that ‘no one is left behind.
He highlighted the importance of access to finance for private sector development and employment creation in Namibia.
The financial cooperation of KfW and NamPost in his view, is an important pillar for the German support to Namibia in the field of sustainable economic development as one of the focal areas of German development cooperation.
PostFin Head of Finance Holger Klitzke said that PostFin has a track record of providing micro-finance to Namibians, stretching back to PostFin’s inception in 2007 and specifically serves clients in the lower income groups who are partially or fully excluded by the formal banking sector.
From 1990 until today, Klitzke said the funds of German development cooperation mount up to EUR 1.6 billion (N$32.3 billion).
The KfW portfolio under implementation comprises 36 projects with a total volume of EUR 646.2 m (N$12.9 billion), while 22 projects with a volume of EUR 329.4 m (N$6.6 billion) are under preparation.
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