CoW to assist MSMEs
04 November 2019 | Local News
Memorandum of Undertanding (MoU) with development-oriented microfinance institution
According to council documents, access to finance is necessary to create an economic environment
that enables firms – especially Micro, Small and Medium Enterprises (MSMEs) – to overcome
financial barriers. The agreement was signed in this light, with the CoW saying this agreement will
add value to the mandate of both partners and “is designed to facilitate and extend financial support
as well as financial management training, to first and second economy entrepreneurs”.
According to council documents, the agreement is on consultation basis for the benefit of the first
and second economy entrepreneurs, which includes youth entrepreneurs who operate from the
CoW’s markets, industrial stalls and the entrepreneurial centre, as well as youth who signed up for
the Youth Entrepreneurship Development Programme and who require business support services.
The CoW has been working with Kongalend on an informal basis for the past five years, with the
facilitation of loans to the tune of N$65 000 for 40 beneficiaries.
To qualify for an MSME loan, the applicant must be a Namibian citizen, be between 18 and 60 years
old, may not be blacklisted and must have a business bank account. Loan amounts start at N$1 000
up to N$250 000. Repayment terms vary from six to 48 months with an interest rate of 16.8%.
The CoW will identify traders and organise a formal introduction with Kongalend.