Nam Financial Inclusion Fund (NAMFIF) is a venture capital fund that provides equity and debt financing to micro, small, medium businesses, and those entrepreneurs who often do not fulfil the criteria to obtain the required financing for longer-term growth from lending institutions.
The objective of the Fund is to seek capital appreciation superior to those earned on equity, or equity-related investments of comparable risk .
Primary objectives of the Fund include:
Provision of venture or private equity investments to micro, small and medium entrepreneurs (MSME) based in both rural and urban areas in Namibia at a very early stage when other financing is not available;
Access to Finance /Lack of collateral: Providing access to finance to MSME without collateral is the Fund’s mission. The fund will provide risk capital (equity investment) to businesses that have the potential to generate profit and make an impact on the economy. In addition to equity, the Fund will provide short term working capital support to help companies tide over difficult times
Convert traditional and unproductive assets such as communal land and cattle into financial assets that can be used as collateral against bank borrowing.
The Fund Manager will only pursue investment opportunities in Namibia based on business propositions and entities that provide exceptional potential for earnings growth. Investee companies will typically demonstrate:
• A well-balanced management team with strong leadership;
• Operate in attractive, stable markets
• Provide the potential for at least 100% earnings growth over a 3-year time horizon; and
• A realistic opportunity for the Fund’s exit through trade sale or IPO