15 Nov 2020

National Development Bank (NDB) has introduced relief measures to its P245million worth assisted businesses to cushion against the adverse effects of the COVID-19 pandemic.

Speaking during a live BTV COVID- 19 updates programme on November 14, NDB chief executive officer, Ms Lorato Morapedi said the bank had instituted forbearance measures that included repayment holiday, extension of repayment periods, waiver on penalty interest and moratorium period extension.

“I’m pleased to note that almost all of these businesses are showing early signs of recovery. 

The bank is continuing to review all these measures implemented early in the year to assess the health of these businesses for further forbearance assistance. 

These are indeed trying times and business owner assistance and financier participation is essential to preserve jobs and prepare for life after COVID-19,” she said.

She said the assistance was done in three folds, namely the P40 million COVID-19 relief fund for the rehabilitation of projects affected by the pandemic. The fund covers equipment, stock, supplies of essential goods and services.

There is the P50 million agribusiness stimulus fund to stimulate output in beef, small stock, horticulture and poultry sub-sectors to augment the country’s food security and reduce the current high import bill on these commodities.

Ms Morapedi said there was also the P20 million procurement of essential supplies fund which aimed to assist businesses which supply essential services or support SMEs with COVID-19 essentials. 

She said the fund also covered purchase order financing on COVID-19 supplies.

“The bank is a participant to the BECI credit guarantee scheme which covers 80 per cent of the security requirements to ease security impediments on the side of businesses. The bank also offers seasonal loan facilities at prime rate through the ISPAAD subsidy for horticulture which is an extension of the arable farming scheme,” she added.

Ms Morapedi said the bank had launched the #FeedtheNation campaign aimed at positioning the country to be self-reliant in food production by facilitating farmers to access the right type of funding in their area of production. 

She further highlighted that the campaign was complimented by partnering with key stakeholders such as BALA and SPEDU to promote urban agricultural initiatives of which Selebi Phikwe and Gaborone city councils were already at advanced stages of implementation.

The Industry Support Fund (ISF), she said, which was announced by President Dr Mokgweetsi Masisi during State-Of- the-Nation Address, would cover general businesses, agriculture and tourism.

She said P300 million would go to medium scale businesses, P200 million allocated to travel and tourism while P100 million had been set aside for agriculture. 

She said the loans were unsecured and primarily financed operating costs and working capital needs for short term and medium term. The loans are open to citizens and non-citizens businesses already in operation.  Ends