In the same spirit of extending banking services to the unbanked, we approved a banking license to the first Micro Finance Bank in Namibia – that is built on the Grameen Bank concept. Ladies and Gentlemen, while these achievements are praiseworthy, it is important to note that more needs to be done.
They are more likely to result in higher inflation and consequently higher long term interest rates, which will impact negatively on the cost of government borrowing and the cost of capital. Under such circumstances, real long term interest rates are likely to rise even further because of a possible increase in the risk premium.