NDB has plans to support SME programme: Chairman

The National Business

NATIONAL Development Bank (NDB) chairman Michael Mell says the bank has a plan to assist small businesses when it receives the K80 million appropriated by Cabinet to rollout the Government’s small to medium enterprise (SME) support programme.
Commerce and Industry Minister William Duma said NDB would receive the K80 million soon.
The Department of Commerce and Industry yesterday presented K100 million to Bank South Pacific (BSP) which will see customers now applying to the bank for soft lending through its SME loan product.
“BSP can look at the bigger clients, for NDB, from the K80 million that will be given, we already have a plan in place,” Mell said.
“NDB will go to the settlements and the villages.
“We got loans from K5,000 to K500,000.
“Anything above that, you can get to BSP because their ceiling is about K3 million.”
Mell said SMEs was the way to grow the country’s economy.
“Our economy is too small, our economy cannot employ all the school leavers, our economy cannot be able to do the things that it wants to do.”
Mell said one of NDB’s priorities was school leavers.
“We start small business so we become partners to the Government, pay small tax and also employ.”
Duma said NDB would be lending out money at a rate of four per cent over 20 years.
Under the Government’s K200 million SME funding, BSP will target startups and existing businesses while NDB will target small incubation businesses and small to medium enterprises.

2 comments

  • Way forward for Economic Independence!

    Great initiative to reach settlement and village entreprenuers. Really appreciate it as a youth entreprenuer. However, I appeal for flexible requirement unlike BSP which is more complicated for a woman or youth entreprenuer to meet. For instance, K500 000.00 turn over in year.
    The flexible requirement should come down to village and settlement for majority who are doing small business to access the funding and expand their business activities.More proper coordination process to oversee positive result is paramount when coming down to village and settlement level.
    There are potential entrepreneurs out there that needs leadership sight that can see, activitate and unlock the potential for them to give a go only if proper conduicive environment is created for them.
    As a youth entreprenuer, also supporting, encouraging and motivating youth to participate in nation’s wealth and resources through wealth creation, I believe the template and requirement created would be suitable for the youth to be elible for the loan.

    Thanks!

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