NamPost, AFD in N$235m microfinance deal
By Business Reporter
Namibia Post Limited (NamPost) and Agence Française de Dévelopement (AFD) have announced the disbursement of a N$235 million loan to finance the growth of NamPost’s microfinance business through its subsidiary, PostFin.
The concessional loan on-lend to PostFin, specifically targets NamPost’s microfinance activities aimed at pensioners.
In addition, it supports PostFin’s strategy of targeting more vulnerable and under-banked segments of the Namibian population and reach a market share within pensioners of about 20-30 percent over the next five years.
“This loan to NamPost through its subsidiary PostFin will promote financial inclusion in Namibia by reaching out to thousands of pensioners who are considered as not bankable for credit reasons, by banks and microfinance institutions. It will contribute to the socio-economic resilience of Namibia and will, to a certain extent, mitigate the effects of the Covid-19 crisis which makes access to financing even more challenging,” Claire Bodonyi, French Ambassador to Namibia said.
Financial inclusion for individuals has increased remarkably in recent years and Namibia stands out with a high percentage of banked individuals. However, a significant part of the country’s more than 150 000 pensioners, remains a largely financially excluded segment and often overlooked by banks and microfinance institutions. This makes them financially vulnerable and unable to actively participate in the country’s economy.
“I strongly believe that pensioners have a great role to play in our society. This partnership with AFD, coupled with the expertise of our subsidiary PostFin in providing financial services to low-income populations, will enable us to support pensioners who wish to launch small businesses or simply improve their living conditions and those of their family members,” Festus Hangula CEO of NamPost said.
AFD is also discussing with NamPost to provide technical assistance to the maximum value of EUR 200 000 (approximately N$3.8 million) to increase PostFin’s practices in terms of client’s protection and support the diversification of its products as well as cooperate with other microfinance stakeholders in Africa.
AFD is an inclusive public financial institution and the main actor in France’s development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries, and in the French overseas territories.
AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world. Its action is fully in line with the Sustainable Development Goals (SDGs).
Through its network of 85 agencies, AFD operates in 109 countries and is currently supporting over 3 500 development projects. In 2018, it earmarked EUR 11.4bn to finance these projects.