Trade-related financial services - Germany

DEG contributes to trade promotion programmes, working together with international private and development banks, which back up letters of credit (L/C) by selected local banks in developing countries. DEG and the donor banks have direct contractual relationships with each of the local banks involved and assume a share of the risk of default arising from L/C confirmation in each case.

Commissioned by BMZ, GIZ is supporting the Government of Namibia in the area of financial systems development. To improve access to finance for Namibian enterprises, a number of reforms and specific measures are foreseen in the Namibia Financial Sector Strategy (NFSS). The project is cooperating with the Bank of Namibia, the Namibian Financial Institutions Supervisory Authority, the Development Bank of Namibia and others in adapting regulations (e.g. the Credit Agreements Act and the Banking Institutions Act) and in assessing the viability of new financing instruments, such as venture capital, credit guarantee schemes and a fund with a first-loss component. With support from the project, the Financial Literacy Initiative hosted by the Ministry of Finance is communicating important knowledge to enhance access to finance. The initiative includes professional-level training in business and financial management, as well as more general awareness-raising on financial services.