WINDHOEK – The Development Bank of Namibia (DBN) has spent approximately N$ 559,6 million in funding manufacturing businesses in the country since the bank’s inception in 2004. This is 17,4 percent of a total of N$ 3 222,6 million in approvals made since the bank opened.
The largest allocations in the sector went to food manufacturing and manufacturing to support building and infrastructure development.
DBN’s chief executive officer Martin Inkumbi said the level of approvals in these fields is a response to national economic and development requirements. “By placing emphasis on these two sectors, the bank has been able to contribute to gains in import substitution, which reduce capital outflows and which enhance the economic independence of Namibia,” he said.
DBN sees food security as a national priority and enterprises processing food are of particular importance as the link between the farm and the consumer. On manufacturing for building and infrastructure development, DBN’s activities are geared to provide a steady supply of raw materials using Namibia’s own resources. This reduces the costs to local enterprises and initiatives, creates additional local employment and is an underpinning of local beneficiation.
Inkumbi also said that the bank viewed manufacturing as critical for development of backward and forward linkages. In terms of backward linkages, larger manufacturing enterprises create opportunities for enterprise development to service their needs, and in terms of forward linkages, they provide materials for other enterprises.
According to DBN’ statistics, the largest regional allocations have gone to Otjozondjupa with 26,3 percent, driven by DBN’s investment in Ohorongo Cement. Projects with national impact received 21,6 percent of funding, Khomas Region received 14,7 percent of funding and Erongo Region 10,2 percent of funding. Inkumbi pointed out that this was a reflection of levels of regional economic activity. He went on to note that the Bank has allocated finance in most regions, but the levels of approvals were determined by the demand for finance in each region.
Inkumbi said the activities of larger manufacturing enterprises would ripple out to other regions. He pointed out the bank’s allocations to Ohorongo Cement and Namibia Dairies Aimab Superfarm processing facilities, as examples. Both these enterprises he said, had a national impact.
DBN reckons that financing approvals for manufacturing businesses have had an impact on 5 053 jobs, broken down into 2 154 new jobs, 1 752 temporary jobs and 1 147 jobs retained. About 79 percent of the funding was allocated to previously disadvantaged Namibians.
By Staff Reporter