N$121.1 Million Available for Companies in Difficulty The Namibian government has announced the availability of N$121.1 million for companies experiencing financial distress due to the COVID-19 pandemic. This funding is intended to support businesses that are struggling to maintain operations and preserve jobs. Eligibility Criteria To be eligible for the assistance, companies must meet the following criteria: * Be registered in Namibia with a valid business license * Demonstrate a significant negative impact on revenue due to COVID-19 * Have at least 50% local ownership * Have a positive track record prior to the pandemic * Be committed to preserving jobs Application Process Companies interested in applying for the funding should submit their applications, along with supporting documentation, to the Development Bank of Namibia (DBN). The application forms and guidelines are available on the DBN website. Loan Terms The loans under this program will have the following terms: * Interest rate: 5% per annum * Loan period: Up to 36 months * Repayment grace period: Up to 6 months Uses of the Funding The funding can be used for a variety of purposes, including: * Covering operating expenses, such as salaries, rent, and utilities * Purchasing raw materials and inventory * Making capital investments to adapt to new market conditions * Restructuring or refinancing existing debt Government Support The government has emphasized the importance of supporting businesses during this difficult time. The Minister of Finance has stated that this funding will provide much-needed relief to companies and help to preserve jobs. Encouragement for Companies Companies that are experiencing financial challenges are encouraged to apply for the funding. The DBN will assess applications on a case-by-case basis and work with companies to develop customized support packages.Bank of Namibia Updates on Loan Scheme and Economic OutlookBank of Namibia Updates on Loan Scheme and Economic Outlook The Bank of Namibia (BoN) has approximately N$121.1 million remaining in its economic recovery loan scheme for small and medium-sized enterprises (SMEs). The fund was initially allocated N$500 million, of which N$378.9 million has been disbursed to businesses in need. Governor Johannes !Gawaxab reported that funds have been distributed to sectors such as agriculture, manufacturing, retail, and services, providing necessary financial relief and enabling businesses to maintain operations, preserve jobs, and contribute to economic recovery. !Gawaxab also provided an economic outlook, with growth projected to slow to 3.7% in 2024 due to factors like drought and weak global demand for minerals. However, a recovery to 4.1% is anticipated in 2025. Globally, growth is expected to be steady but below pre-pandemic levels, which poses challenges for Namibian exports. The governor highlighted that Namibia’s financial system remains robust, stable, and resilient despite the economic slowdown. The banking sector maintains a strong capital and liquidity position, with profitability remaining solid due to rising net income, particularly interest income. In its final year of its strategic plan (2022-2024), the BoN has made significant progress in key focus areas, including regulatory improvements, legal framework enhancements, strong stakeholder engagement, and organizational efficiency. The parliamentary standing committee on economics and public administration inquired about the BoN’s advisory role in oil and gas projects and the impact of public debt on Namibia’s finances. Despite rising interest rates, inflation levels remain lower than those experienced in previous decades. The governor noted that declining inflation could create a more favorable environment for future rate adjustments. The bank is currently implementing new financial regulations, including the Payment Systems Management Law, Virtual Assets Law, and Banking Institutions Law.Government Assistance for Struggling Companies The Namibian government has allocated N$121.1 million to support businesses facing financial difficulties. This initiative is part of efforts to mitigate the impact of the COVID-19 pandemic and other economic challenges. The funds will be disbursed through the Development Bank of Namibia (DBN). Companies in various sectors, including tourism, hospitality, agriculture, and manufacturing, are eligible for assistance. The government will provide loans with favorable interest rates and flexible repayment plans. Additionally, businesses may receive grants to cover operational expenses such as salaries, rent, and utilities. The application process for financial assistance is currently open. Companies are urged to contact the DBN for more information and to submit their applications. The deadline for submissions is 30 June 2023. This initiative is a significant step in supporting Namibian businesses and stimulating economic recovery. The government encourages companies to utilize this opportunity to overcome their financial challenges and contribute to the country’s economic well-being.