SWAKOPMUND: A total of 66 beneficiaries and 10 additional grants to prior beneficiaries, received affordable financing for their business ventures from the Erongo Development Foundation (EDF).
The funding which does not exceed N.dollars 13 000, was awarded to various Small and Medium Enterprises (SME’s) at the launch of the third Erongo Micro Finance Credit Scheme here on Thursday.
According to the Chairperson of the EDF, Asser Kapere, the purpose of the credit scheme is to provide affordable finance to the SME sector in Erongo Region.
“Since its inception, the project has assisted about 120 beneficiaries. The current phase we are launching today is assisting 66 new beneficiaries with loans and additionally, 10 beneficiaries of the previous scheme who wanted a loan will be given a grant of N.dollars 7000 each which will be passed over to Bank Windhoek for further loans,” he said at the launching of the scheme.
The credit scheme, which was initiated through the support from the Rössing Foundation, Erongo Regional Council and Bank Windhoek, received additional assistance from other stakeholders such as Bannerman and Areva Resources.
The norm adopted by the scheme is that beneficiaries receive training in financial management, marketing and business planning before receiving funding. The training is then funded by EDF and its different partners.
The credit scheme consequently assists those who under normal circumstance would not have security, collateral or credit worthiness to obtain loans from banks. Kapere continued to say, that the fund serves as guarantee or collateral from funds invested in Bank Windhoek by EDF and Rössing Foundation, which is the tune of N.dollars 1.5 million.
“It makes us all proud that the repayment rate of the just ended credit scheme phase was over 90 per cent and therefore call on all new beneficiaries to further improve this record,” he added.
Furthermore, the recipients of the loans each received certificates for successfully completing the financial management and business planning training and as well as funding letters. Those entities that have been listed with the Credit Bureau will receive their letters on condition that they normalise the status before receiving their loans.
“Should you be successful and prove that the economically challenged can pay loans, this credit scheme will flourish and continue to take care of the many other economically challenged in society,” the chairman explained.
Kapere also indicated that the next project of the EDF will be the sustainable development sub-committee which is to advice support to EDF on feasible projects supporting growth and development of communities in a sustainable manner as well as busy constructing a classroom at the Kolin Foundation Secondary School in Arandis.
(edited)SWAKOPMUND; The Erongo Development Foundation (EDF) on Thursday awarded grants to more than 70 small and medium enterprises (SMEs).
A total of 66 new beneficiaries, as well as 10 prior beneficiaries received affordable financing for their business ventures at the launch of the third Erongo Micro-Finance Credit Scheme here on Thursday.
The funding does not exceed N.dollars 13 000 per beneficiary.
According to EDF Chairperson Asser Kapere, who spoke at the event, the purpose of the credit scheme is to provide affordable finance to the SME sector in the Erongo Region.
“Since its inception, the project has assisted about 120 beneficiaries. The current phase we are launching today is assisting 66 new beneficiaries with loans and additionally 10 beneficiaries of the previous scheme who wanted a loan, will be given a grant of N.dollars 7 000 each which will be passed over to Bank Windhoek for further loans,” he said.
The credit scheme, which was initiated through support from the Rossing Foundation, Erongo Regional Council and Bank Windhoek, received additional assistance from other stakeholders such as Bannerman Resources and Areva Resources.
It assists those who, under normal circumstances, would not have security, collateral or credit-worthiness to obtain loans from banks.
Prior to receiving funding, the beneficiaries receive training in financial management, marketing and drawing up business plans.
Kapere stated that funds invested in Bank Windhoek by EDF and the Rossing Foundation to the tune of N.dollars 1,5 million serve as guarantee or collateral for the SME owners.
“It makes us all proud that the repayment rate of the just-ended credit scheme phase was over 90 per cent, and therefore call on all new beneficiaries to further improve on this record,” he added.
The beneficiaries also received certificates for successfully completing the financial management and business planning training, as well as funding letters. Those that have been listed with the Credit Bureau will receive their letters on condition that they normalise their status before receiving their loans.
“Should you be successful and prove that the economically challenged can pay loans, this credit scheme will flourish and continue to take care of the many other economically challenged in society,” the EDF chairman explained.
Kapere indicated that the EDF’s next project will be a sustainable development sub-committee which is to advise support the EDF on feasible projects supporting growth and development of communities in a sustainable manner.
In addition, it is busy constructing a classroom at the Kolin Foundation Secondary School in Arandis.