FNB Namibia and Arch Resources Sign SME Finance MoU

In Short

FNB Namibia and Arch Resources have signed an MoU in Windhoek to improve access to project finance for SMEs in construction and infrastructure.

What Happened

FNB Namibia and Arch Resources (Pty) Ltd signed a memorandum of understanding, an MoU is a formal agreement that sets out how two parties plan to work together.

The focus is project finance for small and medium enterprises. Project finance is funding tied to a specific contract or build, like a road upgrade or a building site, where repayments often depend on the project being completed and paid for.

FNB Namibia said the partnership aims to address common barriers that block SMEs from getting funded. These include limited collateral, meaning not enough assets to pledge as security, and short financial track records, meaning too little history of audited accounts and past performance.

The MoU targets SMEs in Namibia’s construction and infrastructure value chain, including engineering firms and contractors that need working capital to mobilise on projects.

Why It Matters

Construction SMEs often win tenders but struggle to finance early costs like materials, payroll, equipment hire, and site setup. When funding is delayed, projects slow down, penalties rise, and smaller firms can lose contracts to better capitalised competitors.

If FNB Namibia and Arch Resources can turn the MoU into repeatable financing routes, it could improve execution for local contractors and reduce reliance on large firms for mid-sized infrastructure work.

For Namibia’s broader SME ecosystem, the announcement also signals a shift toward structured project finance support, not just standard business loans. That matters in sectors where cash flow is lumpy and payments come late, which is common in public and large private builds.