KATIMA MULILO – As part of its efforts to boost enterprise development and economic growth, the Development Bank of Namibia (DBN) held an information sharing session with the business community in Katima Mulilo recently.
DBN Chief Executive Officer Martin Inkumbi revealed at the meeting that SME funding has enjoyed considerable attention since the bank’s inception, accounting for over 70 percent as compared to other business categories.
“Seventy percent of the loans that we have given out have gone to SME’s. About N$450 million to N$470 million have been loaned to SMEs. There might be a number of SMEs we have not assisted but we have tried and we will continue to do so,” he revealed.
During the informatiom session the issue of collateral and formulation of business plans as impediments to accessing loans cropped up with many of the aspiring young business people expressing their dismay over the stringent loan requirements. Inkumbi replied that in every business such requirements were needed in order to assess and overcome the risks involved and ascertain the viability of a proposed business venture.
“In the process of evaluating the business, these are questions that need to be asked. As part of our mentoring programmes however we conduct such training from time to time. It is a bit of a challenge when it comes to financial statements because it requires a high level of understanding. We only give the basics but not at a level where people are able to interpret financial statements,” said Inkumbi.
He denied suggestions the bank ropes in experts to help young entrepreneurs formulate their business plans saying such a move may entirely compromise the essence of the bank and should therefore lie somewhere else.
“That might compromise our role as the financier. We cannot play the role of player and referee at the same time. That would mean that we cannot turn down your business proposal. We want to see a situation where you are able to see your business from an independent point of view,” said Inkumbi.
Inkumbi further added that the bank has developed a tracking system to gauge how the marginalised are being supported. “The bank has resolved to focus on the youth, women and rural-based projects. The bank is always conscious of that. We want to start tracking to what extent have we supported young entrepreneurs,” he noted.
The Namibia Chamber of Commerce and Industry (NCCI) Zambezi branch chairperson Francis Sikumba said most business people face problems such as the lack of financing, lack of financial skills and management with collateral posing as the biggest challenge. He said although most business people are reluctant to join the chamber, the NCCI has embarked on special training for business people.
“We have 50 businesses registered as members so far. Most people are reluctant to join; I don’t know whether it is the membership fee paid that is preventing them from joining. We lack financing, financial skills and the biggest of all is collateral. We have organised a number of trainings before. Last year we had training on exports and tendering,” elaborated Sikumba.
Sikumba urged business people to register with the NCCI, saying doing so may solve some of the pressing problems they face.
“If some of these business people represented here were members, some of the questions they are asking could have been answered already. That’s why this branch does not grow because we lack members,” said Sikumba.
Over 100 business people attended the event.
By George Sanzila