Micro finance is critical for the development of Namibia by narrowing the inequality gap and in the reduction of poverty. Microfinance fosters financial inclusion as it predominately funds the populace without financial means and without tangible collateral provision. The Republic of Namibia has adopted key national policy instruments in National Development Plan 5 (NDP5), Harambee Prosperity Plan (HPP) and Vision 2030 as blueprints for the country’s future economic and socio-economic development strategy. This plan offers a long-term vision to 2030 and aims to ensure that all Namibians attain a decent standard of living through the elimination of poverty and the reduction of inequality.  The alignment and adherence to the United Nations Sustainable Development goals (17) ensures that micro finance plays a pivotal role in addressing this national challenges.

A key focus of  micro finance is the extension of micro loans to small to medium sized enterprises, corporates, individduals and other micro lenders. Focus on unbanked and bankable segments of the domestic economy as part of addressable target clientele. A loan disbursement diversification strategy will be applied with a focus on local regional geography, sector , industry and types of clients. The micro finance loans to be classified and categorised across 3 tiers based on the lending amounts.

Alstroemena Finance has established relationships with the offshore financial partners as a source of liquidity and will employ a strategic initiative to maintain cash reserves. Micro loans disbursed will be priced at a maximum interest rate of 30% with a minimum tenor of 1 month. The company will employ robust risk management strategies to mitigate liquidity, market, operations and credit risk.