Volksvermogen contributes to a capital increase in FIDES Bank Namibia to support its further growth

Volksvermogen contributes to a capital increase in FIDES Bank Namibia to support its further growth

2012/09/05

In December 2009, Volksvermogen was amongst the founding shareholders of FIDES Bank Namibia. Currently, the bank counts more than 10,000 borrowers in northern Namibia, the most populated and poorest area of the country. To further support the MFI in increasing its geographical outreach, extending its product range and developing new delivery channels, the bank's shareholders are all subscribing to additional shares. Volksvermogen, whose microfinance portfolio is being advised by Incofin IM, holds 12.60% of the shares and participates pro rata to the capital increase. The other shareholders are SMH, KfW, I&P and Crédit Coopératif.

In its first two business years, FIDES bank Namibia mainly worked on expanding its presence in the rural communities in northern Namibia, offering loans through joint and several liability groups. The bank now plans to expand its activities to the area around the capital Windhoek, the second largest populated region of the country. Additionally, FIDES Bank Namibia will pursue developing new financial products and services, including insurance products and mobile banking, in order to even better meet their clients’ needs. Additional to new branches, Fides also plans to invest in a network of ATM's.

To realize all these challenging goals, FIDES Bank Nambia will considerably increase the current staff of 100 employees and looks forward to creating a training academy for inclusive finance. With this capital increase, the shareholders of FIDES Bank Namibia, all socially responsible investors, want to re-iterate their intentions to create, in addition to financial returns, a positive development impact by facilitating the creation of employment and income.

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