AFD Signs a Grant Agreement with Postfin in Namibia

The signing ceremony of this agreement was held with the participation of Mr. Festus Hangula, CEO of NamPost ; Mr. James Cumming, Chairperson of the PostFin Board ; Mr. Patrick Gardiner, CEO of PostFin ; Sébastien Minot, Ambassador of France to Namibia ; and Mr. Bruno Deprince, AFD Regional Director for Southern Africa.

In Namibia, high levels of banking coverage mask high levels of inequality. Financial inclusion is important but large segments of the population have little or no access to financial services. While financial inclusion has increased remarkably in recent years, SMEs, workers in the informal sector and a large proportion of pensioners remain excluded from credit.

To address this issue, AFD is supporting the growth of NamPost Financial Brokers (Pty) Ltd (PostFin), a subsidiary of the Namibian Post Office (NamPost) entirely dedicated to microfinance. On 9 December 2019, a credit agreement for a non-sovereign loan of ZAR 235 million was signed with the aim of increasing financial inclusion in the country, especially towards pensioners.

As a continuation of the partnership, AFD is now making available to PostFin a Technical Assistance support for a maximum amount of 200,000 euros (about 3.3million Namibian dollars). The purpose of this project is to improve PostFin’s performances through consulting services, training and international peer-to-peer exchanges with a focus on gender mainstreaming and clients protection. The funding will cover a wide range of activities, including:

• Diagnosis and definition of an action plan in terms of client protection;
• Peer-to-peer exchanges with one or more African MFIs;
• Participation in a micro-finance training program called Boulder MFT;
• Identification of financial products and services to meet the specific and at this stage uncovered needs of women.

Press contacts :

• PostFin : Candice Goliath | +264 (0)61 308 724
• Agence Française de Développement (AFD) : Erica Penfold | +27 72 261 1251