INSTITUTIONAL HISTORY

In July 1996 and September 1997, the decision has been taken by the Namibian and the German governments to set up a credit guarantee facility for SMEs and to include this feature into the on-going MTI/GTZ SME project. During 1998/9, several rounds of negotiations with commercial banks and other involved stakeholders have been conducted, culminating in:

• The establishment of the Small Business Credit Guarantee Trust in June 1999;
  
  
• An agreement between the German and the Namibian Government (GRN) in October 1999 for contribution of DM 2 million to SBCGT by the German Government with the condition that GRN can secure the capitalization of the Fund with at least N$ 10 million;
  
  
• The subscription of a Memorandum of Agreement between SBCGT and all six participating financial institutions between November 1999 and mid-2000;
  
  
• An agreement in July 2000, with the European Union for a financial contribution to SBCGT's credit guarantee fund of € 735,300 and of € 88,300 to SBCGT's training fund. In addition the agreement included technical assistance in the form of a long-term expert on SME Credit Extension, Management and Training. The EU commitment is implemented by a team under the Trade and Investment Development Programme (TIDP);
  
  
• An agreement in April 2002 with the Italian Government implemented by the International Committee for the People Development of Italy (CISP) to contribute N$500,000 to SBCGT's credit guarantee fund and for the provision of technical assistance in training and marketing.