The Namibia Procurement Fund (Nampro Fund) has extended over N$1 billion in SME funding, Managing Director, Kauna Ndilula, has said.
Nampro Fund is an investment fund, whose primary objective is to provide required short-term working capital facilities to SME suppliers that require funding to execute contracts.
Ndilula said Namibian businesses must get out of their comfort zones especially now that the country is facing its worst economic crisis since independence in 1990.
She advised businesses to consider equity funding as a means to fund their ventures instead of looking at the traditional debt finance through commercial banks.
“We were riding on a fairly smooth curve over the past few years with significant public stimulus in terms of expenditure. Conditions are harder now, but it does not mean we cannot do business,” Ndilula said.
Her comments comes at a time when pension funds and asset managers are also looking to invest in unlisted companies following changes to regulations that now require asset managers to invest an increased portion of their assets in Namibia.
The threshold will be raised to 40 percent starting this month, 42.5 percent by April 2018 and 45 percent by October 2018.