Proparco grants a EURIZ guarantee to FNB Namibia to strengthen its support to MSMEs
published on 19 October 2021
The operation consists of a EURIZ portfolio guarantee of N$ 68m (EUR 4m) to support First National Bank of Namibia Limited (FNB Namibia Ltd) in its financing to high-impact MSMEs. A signing ceremony was held in Windhoek on 19 October 2021, in the presence of representatives from Proparco, FNB Namibia, AFD, the French Embassy and the EU Delegation to Namibia. FNB Namibia is a long-standing partner of Proparco, and AFD Group, having already benefited from two portfolio guarantees in 2011 and 2014.
Through this partnership, via a EURIZ guarantee, Proparco seeks to contribute towards the FNB Namibia’s efforts to support Namibian MSMEs operating in key sectors such as agriculture, health, education and climate, as well as youth-owned SMEs, women-owned SMEs, and start-ups. A significant proportion of the guarantee will focus on supporting those MSMEs operating in the agriculture sector, in an effort to contribute to Namibia’s food security objectives. The guarantee will be coupled with a technical assistance facility designed to provide the financial institution’s MSME customers with capacity building support.
Launched in May 2019 with the support of the European Union and the European Development Fund, and the Organization of African, Caribbean and Pacific States (OACPS), the EURIZ guarantee aims to facilitate access to credit for MSMEs, in particular in sectors with a high development impact, in order to help them play their essential role in economic growth and job creation. It also forms part of Choose Africa, the French initiative dedicated specifically to African entrepreneurs and MSMEs.
By working with local financial institutions, AFD Group contributes to strengthening financial markets and plays a counter-cyclical role by increasing funding for local economic actors so that they are more likely to overcome the consequences of the Covid-19 crisis. In doing so, the project promotes local private sector development for sectors and segments that are essential in achieving sustainable and inclusive economic growth. Therefore, it will contribute to SDGs n°1 (“No poverty”), n° 8 (“Decent work and economic growth”) and n°10 (“Reduced Inequalities”).
