The Development Bank of Namibia (DBN) is committed to financing economic activities in the country that meet the explicit funding requirements for sustainable socio-economic development and growth. Illuminating on the basis for DBN funding, Chief Marketing and Corporate Affairs Officer, Jerome Mutumba flagged that prime on the set of criteria to be met, an entity must be incorporated in Namibia, and it ought to be in good standing with all the applicable national statutes at the time of application. The prime requirement is applicable to all foreign and Namibian-owned registered enterprises, without exceptions.
To further guide prospective applicants, DBN expects enterprises to demonstrate sustainable financial viability and development impacts, in line with identified economic sectors aligned with national economic priorities.
Qualifying criteria for applications include businesses that demonstrate potential for long-term sustainability and employment-creation. This includes start-ups with clear, feasible business plans, and existing businesses looking to expand or undertake new ventures. Mutumba said: “DBN seeks to ensure that its finance supports projects that are economically and environmentally-sustainable. This includes the responsible use of resources, compliance with environmental and social regulations, and contributions to the broader Namibian economy.”
To qualify for financing, businesses must operate within Namibi, or have plans to expand into the SADC region. The enterprise must also create or retain employment opportunities for Namibian citizens, reflecting DBN’s commitment to job-creation and local development.
Applicants are generally required to contribute equity, ranging from 10% to 30%, based on the project’s specifics and risk profile. Additionally, collateral may be required for certain projects, depending on the risks involved.
On the issues of locally-owned and foreign-owned Namibian-incorporated entities, Mutumba reiterated that while DBN encourages Namibian ownership (with a preference for businesses that are at least 51% Namibian-owned), foreign-owned businesses with a strategic importance to the country may also qualify for financing. “This allows DBN to support projects that contribute to key sectors such as infrastructure, tourism and manufacturing, which are critical to Namibia’s development.”
In addition, all applicants must comply with Namibia’s Financial Intelligence Act (FIA) and Prevention of Organised Crime Act. DBN has strict Know-Your-Customer (KYC) requirements to ensure that funds are used legitimately, and to combat money laundering and terrorism financing, applications must be accompanied by certified KYC documents and valid identity verification.
“Sustainability is at the core of DBN’s mission. Projects financed by DBN must not only promise financial returns, but also contribute positively to the socio-economic fabric of Namibia. Sustainable businesses create jobs, protect the environment and ensure long-term economic stability. By supporting such ventures, DBN helps build a more resilient economy,” he said.
Applicants are encouraged to prepare comprehensive business plans, including detailed financial forecasts, market analysis and sustainability assessments. All applications must include certified supporting documents, and undergo a thorough review process by DBN experts. Based on this evaluation, the bank may approve, decline or request further development of applications.