WINDHOEK — In a significant call to the nation’s financial institutions, President Nangolo Mbumba urged commercial banks in Namibia to prioritize national development alongside their profit objectives, particularly by enhancing support for small and medium-sized enterprises (SMEs).

According to Namibia Press Agency, during a meeting in Windhoek on Friday with executives from leading commercial banks, President Mbumba highlighted the critical role of financial institutions in national growth and social inclusion. He advocated for innovative banking solutions that would enable easier access to financing for SMEs, which often struggle to secure loans due to stringent collateral requirements. “As government, we would like to see the local banks playing a more proactive role in terms of development particularly when it comes to funding SMEs through ways and means that can substantially lessen the collateral requirements and involve more equity-type instruments,” Mbumba stated.

The meeting served as a platform for open dialogue between the government and the banking sector, addressing public concerns over high interest rates and excessive banking fees. The president emphasized the importance of listening to the populace’s frustrations with the current financial services, advocating for a banking sector that is more aligned with the needs of the wider community.

Nedbank Namibia Managing Director Martha Murorua responded on behalf of the banking executives, noting the meeting as a crucial step towards “fostering economic resilience, financial inclusion, and sustainable growth.” The discussions also involved Minister of Finance and Public Enterprises Iipumbu Shiimi and Bank of Namibia Governor Johannes !Gawaxab, highlighting the broad governmental push towards reforming the financial sector’s engagement with the public and its businesses.