PRESIDENT Hage Geingob has called on the private sector, including the financial institutions such as commercial banks, to come on-board and step out from the excessive collateral demands and share risks by funding new businesses.
Geingob made the call in a speech delivered on his behalf at the official opening of the first edition of the Ehao Cultural Exposition (Expo) at Okahao Town in the Omusati Region on Saturday.
The head of State encouraged financial institutions to share risks by funding new business ideas in previously unchartered and unfunded economic areas in the country.
“Our financial institutions should start funding small and medium-sized entrepreneurs (SMEs) in the sectors such as arts, crafts, leather processing, biltong production facilities, sports and film production, without asking unrealistic collateral amounts which are hindering new business ventures,” Geingob urged.
He also suggested financial institutions to reduce excessively high bank charges, to comparable levels with those in other developing economies.
“Because currently, these bank charges are stifling SME growth,” narrated the President, adding that the same prescriptions would apply to the property landlords which strangely, while the economic times have changed adversely, they continue to charge exorbitant rental fees to SMEs.
Geingob noted that the nation may continue to grow its economy if role players get new mind-set of inclusivity towards new business ideas and SMEs.
Omusati governor, Erginus Endjala, said hosting the first ever Ehao Expo is an indication that the region is grow.
The Ehao Cultural Expo presents business opportunity for companies, SMEs and farmers to showcase their various goods and services to prospective customers and service providers.
It started on Thursday and runs until Saturday, 29 June 2019.