Namibia gets first SME Bank

Namibia’s first SME Bank is expected to open its doors in Windhoek within the first half of this year.

The headquarters in Jan Jonkerstreet, Ausspannplatz, is currently being renovated to the tune of about N$20 million.

Speaking at the foundation laying ceremony earlier this week, the Ministry of Trade and Industry, Dr Hage Geingob, said the rumours that have been circulating about the new Small to Medium Scale Bank of Namibia should end.

“This is not Hage’s Bank,” the minister repeated several times.

Geingob described the event as history in the making. “There are no more rumours, no more dreams - the bank is here.”

Geingob further said that he felt sorry for foreign investors in Namibia, due to tough bureaucracy in the country.

“The slow pace of bureaucracy is hampering the progress of development. It takes up to two or three years and we cannot help those who want to be helped.”

He further said that suspicions and rumours are becoming a problem in the country. “The Zimbabweans were scrutinised just because they are from Zimbabwe. Would the same have been done if they were from America? Do your homework and stop this.”

The bank will have public private partnership ownership, with Government being the majority shareholder owning 60% of the shares.

The other major shareholder is Zimbabwe’s Metropolitan Bank and other minor shareholders are also involved.

Startup capital of N$60 million will be provided by Government, while between N$14-18 million will be injected by the Zimbabwean bank.

However, the bank at this stage only has a provisional license which was granted by the Bank of Namibia.

Government has been failing since 2009 to present the central bank with a banking model that meets banking regulations while addressing the needs of SME financing in the country. As a result, the Bank of Namibia has been extending the provisional license, while making recommendations and suggestions on aspects that need addressing. According to Geingob the final inspection - required for the issuing for a permanent license - will only be done once the revamping of the building is complete.

The shareholding structure and quality of nominated directors is one element on which the SME Bank keeps failing. Geingob noted that the board will meet soon to sign a shareholders’ agreement which will address the shareholding structure.

The Permanent Secretary in the Ministry of Agriculture Water and Forestry, Andrew Ndishishi, has been appointed the board’s chairperson at the Bank.

According to Geingob the Bank will in future also have branches in other regions of the country. “All areas must be represented otherwise it defeats the purpose of an SME Bank.”

click to enlarge EVERYBODY’S BANK: Deputy Minister of Trade and Industry Tjekero Tweya and the Minister of Trade and Industry Dr Hage Geingob at the foundation stone laying ceremony of the new SME bank in Windhoek © Ellanie Smit