Development Bank of Namibia Launches Microfinance Support Framework
Shejavali, N.

The Development Bank of Namibia (DBN) has launched the Microfinance Support Framework to provide capital loans to organizations which support development through low-cost microloans. Loans emanating from this framework will serve to develop microenterprise, basic housing, improvement of rural communal and small-scale farming, community and youth organizations, and allied training and support. The Framework aims to enhance the extent and the reach of microlending by presenting an additional source of capital.

A 2005 report by the Namibia Economic Policy Research Unit advised that both regulators such as the Namibia Financial Institutions Supervisory Authority and practitioners should explore and promote ways that microfinance institutions can reduce costs while controlling the integrity of the loan portfolio. The Framework will provide NAD42 million (US$4 million) to credible MFIs to extend their products countrywide.

President Hifikepunye Pohamba explained, "The framework is not intended for loan sharks, but for developing specialized microfinancing institutions committed to economic development and for extending financial support to segments of society in rural communities, the youth and the unemployed to reduce poverty."

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