Microfinance company pumps N$285m into economy

Konga Microfinance, formerly known as Kongalend Financial Services, says it has made N$285 million available in loans, impacting more than 25 000 direct loan customers.

Trading as Kongalend Financial Services for the past 14 years, the company said in a statement on Monday that it provided productive finance to the micro, small and medium enterprise (MSME) sector, off-grid households and farmers.

The financing is for investing in green energy technologies to light up homes, energise daily lives, and to pump water from boreholes.

In the same statement, the Namibian development financial institution announced it has changed its name to Konga Microfinance.

Company chairman and founder Tshoombe Ndadi said as a development-oriented financial institution it embraces the holistic concept of a broader financial service provider, consistent with best microfinance practice globally.

“This includes the provision of not only credit, but also micro-insurance with regulatory permissions, deposit mobilisation, transactional accounts, mobile money transfers and financial literacy,” he said.

Ndadi said 90% of the financial company’s customers are self-employed women and youth micro-entrepreneurs.

“As Namibia strives to develop its agricultural value chains in line with its national policies such as the national development plans, Harambee Prosperity Plan II and Vision 2030, Konga Microfinance will contribute to this course by focusing on value chain financing to ensure the inclusion of smallholder farmers in modern value chains in the horticulture, as well as in the biomass value chain,” he said.

The chairman said the development of the biomass value chain would be achieved through the sustainable harvesting of invader bush species to produce not only charcoal and biochar, but also animal fodder to mitigate the negative impacts of prolonged dry spells that characterise the Namibian ecosystem.

“We are confident that these measures, however small, would contribute to the enhancement of small-scale farmers’ climate resilience, generating income from the land through diversified agricultural activities.”