DBN initiates Venture Capital FundThe Development Bank of Namibia (DBN) is in the process of developing and establishing a Venture Capital Fund as the third leg of the national SME Financing Strategy.
The initiative acknowledges the importance of SMEs in the local economy and seeks to, amongst others, improve access to funding and capital for SMEs.
The fund will invest in identified SMEs with a strong growth potential, but that are unable to borrow and/or acquire additional capital in exchange for equity. These SMEs will then use the equity funding for growth needs and operating capital, while the fund receives returns through the growth of the value of its investments in SMEs.
Furthermore, the fund will be governed by a board of trustees, a majority of whom will be independent. The recruiting of trustees is expected to begin soon through an independent recruitment consultancy.
Finally, the fund will adhere to relevant registration processes and requirements, in particular the applicable regulations of the Master of the High Court and the Namibia Financial Institutions Supervisory Authority (NAMFISA).
DBN Head of Marketing and Corporate Communication Jerome Mutumba expressed the hope that the fund would lead to the transformation of Namibia’s SME sector.
The DBN previously launched the Collateral Guarantee Scheme and pioneered the National Mentoring and Coaching Programme. The fund is the third and final leg of the SME Financing Strategy.