WINDHOEK – The Development Bank of Namibia’s (DBN) Chief Executive Officer, Martin Inkumbi, said the bank approved N$1.4 billion in finance for 343 enterprises, creating 2 874 new jobs, 4 040 temporary jobs and retaining 4 201 existing jobs.
Inkumbi said the bank’s loan and investment portfolio grew by 30 percent while its total assets rose by 22 percent to N$2.91 billion. He noted that enterprises owned by previously disadvantaged Namibians received 49.4 percent of loans to private enterprises.
Enterprises owned by young entrepreneurs (from 18 to 35 years of age) received 8.6 percent of the bank’s allocations, and female entrepreneurs received 10.2 percent.
The DBN CEO added that 56 percent (N$805.5 million) of the bank’s approvals were allocated to nine large-scale projects in power generation, meat processing, power distribution infrastructure, construction projects, printing and financial services.
Large-scale and infrastructure assets made up 83 percent of the bank’s loan book at the end of 2014. Manufacturing amounted to 21 percent of the bank’s loan book. SMEs received 17 percent of total approvals.
Talking about regional impact, Inkumbi said economic activities remained comparatively more intense in Khomas, Erongo, Oshana and Otjozondjupa regions, resulting in relatively high demand for capital from these regions.
Meanwhile, approvals with national impact amounted to N$355.4 million. Erongo received the greatest amount of regional approvals, totalling N$447.4 million, followed by Khomas with N$ 253.9 million and Omusati with N$123.0 million.
Elaborating on the first quarter of 2015, Inkumbi remarked that DBN approved loans to the value N$189.1 million. The approvals are projected to affect 1 539 jobs, of which 499 are expected to be new jobs, 643 temporary jobs and 397 retained jobs.
Of the approvals, 89.1 percent was allocated to previously disadvantaged Namibians. Allocations to enterprises owned by women amounted to 33 percent, and allocations to youth enterprise made up 19.7 percent of the approvals.
Inkumbi said that construction led approvals in the first quarter of 2015 with approvals of N$72.9 million, followed by education with N$ 37.1 million. Financial intermediation and wholesale and retail trade and repairs jointly followed with N$17 million each.
Approvals with national impact amounted to N$15.7 million. Khomas received the greatest amount of regional approvals totalling N$74.0 million, followed by Erongo with N$21.3 million and Oshikoto with N$15.1 million.
N$89.9 million was approved for secondary industries and N$96.2 million for tertiary industries. A loan of N$3 million was approved for primary industries.x