Kongalend is a Namibian Microfinance Institution (MFI) registered under the Namibian Companies Act (Act 28 of 2004) with a fully-functioning board of directors. Kongalend is a regulated MFI and is registered with the Namibian Financial Institutions Supervisory Authority (NAMFISA) as a microlender (which is the form of registration applicable under current legislation).
While registered as an MFI to conduct microlending activities, Kongalend is also authorised by NAMFISA to carry on business as Funds Manager of unlisted investments. We currently manage the Kongalend Renewable Energy Fund Trust with a capital commitment of N$150 million. The fund was established in partnership with the Government Institutions Pension Fund (GIPF), through which our range of microfinance products are financed. The operations of the fund are conducted through a ring-fenced special purpose vehicle model. Its board of trustees comprises
Kongalend’s strategic executive management cadre and six independent trustees drawn from the financial sector. Under the present legislative framework governing operations of non-bank financial institutions, Kongalend is not permitted to mobilise deposits from the public. It has however, received permission from the Bank of Namibia (the country’s central bank), to accept compulsory loan linked cash security build up to secure the loans taken up by its customers.
Kongalend’s long-term goal is to become a fully-fledged Namibian microfinance bank, offering a wide range of financial services, including productive credit, savings, transactional accounts and micro-insurance products to its low income and rurally-based customer target market – a goal in keeping with current moves within Namibia’s financial sector, to be contained in amendments to the Banking Institutions Act (link to Bank of Namibia site: amended Banking Institutions Bill + notes) to provide for the establishment of second-tier banks.