WINDHOEK: President Nangolo Mbumba has urged commercial banks to go beyond pursuing profit and instead actively contribute to the country’s development, including providing support to small and medium-sized enterprises (SMEs).
The president met with executives of commercial banks in Windhoek on Friday where he encouraged the provision of funding to SMEs that often face challenges in obtaining loans due to a lack of collateral.
‘As government, we would like to see the local banks playing a more proactive role in terms of development particularly when it comes to funding SMEs through ways and means that can substantially lessen the collateral requirements and involve more equity-type instruments.
Similarly, the government would like to see banks become development partners whose sole motive should not be an exclusive focus on profit but also social inclusion and mainstreaming of the unbanked segments of our society through innovative banking instruments such as mobile banking,’ the president said.
The meeti
ng was aimed at exchanging ideas on issues of mutual and national interest. It further provided a platform for government officials to share public concerns with the banks, on things such as high interest rates and excessive bank charges.
‘Most importantly, we can listen not only to your concerns and complaints, but you too can also listen to ours, specifically what the Namibian people out there are saying on things such as high interest rates, excessive bank charges, and sometimes, services which leave much to be desired,’ Mbumba stressed.
Speaking on behalf of her peers, Nedbank Namibia Managing Director Martha Murorua said that the meeting marked a significant step ‘in our collective journey towards fostering economic resilience, financial inclusion, and sustainable growth. It is an opportunity for us to engage in meaningful dialogue, share insights, and explore collaborative pathways that will shape the future of our nation.’
The meeting was also attended by the Minister of Finance and Public Enterpris
es, Iipumbu Shiimi, as well as Johannes !Gawaxab, the Governor of the Bank of Namibia.
Source: The Namibia Press Agency