Government Institutions Pension Fund
Kongalend currently manages N$150 million in development investment capital on behalf of Namibia’s Government Institutions Pension Fund (GIPF) through which its range of microfinance products are financed. The investment is ring-fenced in a Bewind Trust, the Kongalend Renewable Energy Fund Trust, whose board of trustees comprises Kongalend’s strategic executive management cadre and six independent trustees drawn from the financial sector who play a judicious management role presiding over this Special Purpose Vehicle (SPV).
Kongalend’s investment mandate, through this relationship, is to invest funds in such a way that the Trust makes a tangible and visible contribution to the Namibian economy through the provision of micro- financing to individuals, households and small and medium enterprises, targeted mainly to communities in the rural and off-grid areas, thereby stimulating economic activity, the expansion of a renewable energy sector and the improvement of lives and livelihoods in such communities, through the provision of sustainable development-oriented microfinance; to generate acceptable long-term returns compatible with other Southern African investment opportunities; and to support the furtherance and development of social and economic upliftment in Namibia.
The Trust’s strategy is to target investments that have the potential of making a tangible long-term development impact on the lives and livelihood of rural communities, and stimulating meaningful economic activity through the provision of credit financing to individuals and groups operating in various sectors of the Namibian economy, including:
agriculture, community based tourism, construction, energy (renewable), food processing and retail, light industry and manufacturing.
Savings Bank Foundation for International Co-operation
In September 2015, Kongalend and the German Savings Banks Foundation for International Co-operation entered into a five year banking technical agreement to augment Kongalend’s current product offering (which includes SMME, group microenterprise, green energy and agribusiness finance), to expand its geographic footprint by opening up additional branches in communities where its services are most needed, and to strengthen its equity position through the extension of a line of credit for Group and SMME Power loan on-lending, readying it to lay the foundation of a Namibian deposit taking microfinance institution and support its evolution into a fully-fledged Tier-2 microfinance bank.
Further support will be rendered through the initial secondment of senior Savings Banks’ experts to provide specialist technical assistance to Kongalend’s transformation strategy.
Kongalend Financial Services
corner Haddy & Viljoen Street
telephone: 061 24 1440
fax: 061 24 1447
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