Woermann & Brock under fire over SME Bank loan in Namibia

Jun 13, 2017

Woermann & Brock Namibia logo

Namibian retailer Woermann & Brock (W&B) was surrounded in controversy earlier this month after confidential documents from the SME Bank were released in a newspaper report. The documents, which contain details regarding loans made by the Bank to national SMEs, detail that W&B has received a total of N$34 million, making it the top loan recipient.

The main controversy surrounding the subject relates to the fact that the SME fund is destined to support national SMEs and, although the criteria for such definition appears unclear, it is hard to argue that W&B, as the leading national retailer, is an SME. The relative amount of the loan, which represents 29% of the total fund, only adds to the debate. Moreover, the SME Bank failed to the follow regulatory rules in respect to the disclosing the loan to the Bank of Namibia. This all happens at a time when the SME Bank is in desperate need of a cash injection and a bailout is under government’s review.

Founded in 1894, W&B is the oldest and leading Namibian retailer, currently operating 40 stores, including 9 hypermarkets in the country.

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