Staff Writer
FNB Namibia and Arch Resources have signed a Memorandum of Understanding (MOU) aimed at improving access to project finance for small and medium enterprises (SMEs) operating in Namibia’s construction and infrastructure sectors.
The partnership seeks to address financing challenges faced by SMEs, including limited collateral, short financial track records and cash flow constraints during project execution.
Under the agreement, Arch Resources will provide technical support, project vetting and monitoring, while FNB Namibia will offer structured financial solutions to eligible SMEs.
FNB Namibia Head of Small and Medium Enterprise Nesha De Jongh said securing a project was only the beginning of the challenge for SMEs.
“For many SMEs, securing a project is only the beginning of the journey. The real challenge is often having the right financial support to successfully deliver that project,” De Jongh said.
Arch Resources operates as an SME support and project facilitation platform focused primarily on the construction and infrastructure sectors.
Its services include project management support, quantity surveying, procurement assistance, mentorship, and the facilitation of funding and guarantees for SME contractors.
The partnership will combine Arch Resources’ technical expertise with FNB Namibia’s financial capabilities to assess and support viable projects.
De Jongh said the collaboration would seek to provide SMEs with more than access to finance by considering the project and the business when developing financial solutions.
“It is about understanding the project, understanding the business and creating solutions that can help SMEs navigate some of the barriers that stand between them and successful project delivery,” she said.
According to the companies, access to finance alone does not guarantee successful project execution, with SMEs also requiring technical support, project oversight and appropriate financial solutions throughout the project lifecycle.
Eligible SMEs may access financing and guarantees from FNB Namibia relevant to project execution, while Arch Resources will assist with project assessment and monitoring.
The partnership is intended to help SMEs strengthen their capacity to deliver projects, participate in larger value chains and contribute to economic activity.
FNB Namibia said supporting SMEs remained an important part of its role in contributing to economic development, particularly by helping businesses access financial solutions and support to grow.
The MOU marks the beginning of a collaboration between the two organisations, which will identify opportunities to support eligible SMEs and strengthen project delivery in Namibia’s construction and infrastructure sectors.
