WINDHOEK – This week the Development Bank of Namibia (DBN) marked the occasion of its 10th anniversary in the presence of Prime Minister, Dr Hage Geingob, and the Minister of Finance, Saara Kuugongelwa-Amadhila. The Bank was officially inaugurated by former president Dr Sam Nujoma in 2004.
Since its inception, the Bank has approved 1 446 facilities for 1 149 entities. Of the approvals, 1 228 were for SMEs.
The approvals had an estimated impact on 51 493 jobs and a value of N$ 4.05 billion.
Speaking at the launch, Geingob pointed out the critical role of institutions that organisations such as DBN played in the economic development of Namibia and poverty alleviation. He said that although Namibia is classified as a middle-income country, wealth is held in the hands of a small number of people and entities.
The middle income classification rules out foreign aid and loans, he said, in spite of the fact that poverty still affects many Namibians. Organisations such as DBN play an important role in transforming the economy of the country by providing finance to emerging entrepreneurs.
He said that DBN needs to play a role in ensuring equitable income distribution.
Geingob went on to stress that Namibia needs new sources of growth, and that these avenues would rely on human capital, particularly knowledge, to add value to Namibia’s resources.
He said that banks such as DBN should seek means to provide capital on a more inclusive basis, not just for capital owners.
Speaking on the DBN’s achievements, Board Chairperson Elize Angula congratulated members of the Bank’s Board, management and staff for their effort and dedication.
She said that the Bank was viewed by peer development finance institutions (DFIs) as one of the DFIs in the SADC region.
She mentioned that the Bank was an innovator in the field of provision of finance on an inclusive basis, pointing to the development of Contract-Based Finance, which provides access to finance by enabling entrepreneurs to make loans using revenue streams from projects as repayment of loans.
She also highlighted DBN’s partnership with Nampost in terms of which finance was provided to enable the acquisition of technology which allowed Nampost Savings Bank to increase its client base from 160 000 when the loan was made to 450 000 by the end of 2012.
She concluded by reiterating the Bank’s emphasis on ‘putting Namibia first’, and committing the Bank to the development of the country’s economy and prosperity in years to come.
By Staff Reporter