The Development Bank of Namibia (DBN) has reported a strong financial performance for the 2024/25 financial year, posting a 42% increase in operating profit to N$88.3 million, while securing significant new international funding lines and advancing its long-term strategic transformation.
In DBN’s newly released 2024/25 Integrated Annual Report (IAR), the financial results mark the first year of implementation of the Bank’s 2024–2029 Integrated Strategic Business Plan.
DBN’s strategy is built around four priorities, namely strengthening financial sustainability, empowering people, sharpening market presence and deepening development impact.
DBN stated that the improved profitability reflects disciplined cost management, stronger loan recoveries, and operational resilience despite ongoing challenges in asset quality and a contracting loan book.
Another highlight for DBN for the year was the strengthening of the bank’s funding base. This is as the bank secured N$607 million through the KfW Green Credit Line II, it obtained approval for a N$1.5 billion sovereign-guaranteed facility from the African Development Bank (AfDB), and became Namibia’s first institution accredited by the Green Climate Fund.
This accreditation allows DBN to directly mobilise climate finance to support Namibia’s energy transition.
“With strong liquidity, a robust capital base and expanding partnerships, DBN is positioning itself to diversify funding sources, strengthen SME financing and balance financial prudence with its developmental mandate,” the bank stated.
In terms of development outcomes, DBN approved N$912.7 million in funding across priority sectors during the year, with housing and construction accounting for a significant share. The bank said these investments supported the creation of over 1 400 jobs, both permanent and temporary.
Moreover, SMEs remained a key focus, with 49 SME projects approved. Funding included N$51.5 million for women-owned businesses and N$24.3 million for youth-owned enterprises. DBN also reported supporting projects in regions such as ||Karas, Kavango East and West, Kunene, Oshikoto and Zambezi as part of its regional equity objectives.
DBN chief marketing and corporate affairs executive Jerome Mutumba described the IAR as a key accountability tool for stakeholders.
“The year under review reflects solid financial results, meaningful progress in strengthening our funding base, and measurable developmental outcomes across priority sectors,” said Mutumba.
“These results demonstrate that DBN is executing its strategy with discipline while remaining focused on supporting Namibia’s long-term economic development,” he added.
However, the bank’s performance has drawn criticism from the official political opposition, with questions raised about whether strong financial results are translating into inclusive development.
Rodney Cloete, member of parliament and shadow minister of international relations and trade for the Independent Patriots for Change (IPC), said the profit growth should be viewed with caution.
“A big jump in operating profit sounds great until you remember DBN isn’t supposed to be chasing profit. It’s a development bank. The real question is whether it is actually developing anything,” Cloete said.
Cloete questioned the regional spread of DBN’s lending, asking how much funding reached historically marginalised regions such as Kavango and Kunene, rather than the Windhoek and Walvis Bay corridor.
He also raised concerns about access for first-time SME borrowers versus well-connected developers.
Cloete further pointed to DBN’s non-performing loan challenges, which have prompted the establishment of a dedicated task force, an indication that past lending decisions may not always have aligned with sound developmental or economic logic.
While welcoming the new international credit lines from institutions such as KfW and the AfDB, Cloete cautioned that these represent liabilities rather than achievements unless they are converted into productive investments and jobs.
“Given Namibia’s track record with large public investments, some caution is justified until there is clear evidence of employment effects and equitable regional impact,” he said, calling on DBN to routinely publish detailed regional, sectoral, and SME access data.
Meanwhile, looking ahead, DBN noted it will align more closely with government priorities in the 2025/26 financial year. A key initiative will be the National Youth Development Fund, under which DBN is expected to disburse about N$64.2 million to youth-owned businesses across all 14 regions.
The bank also plans to prioritise projects aligned with the Sixth National Development Plan (NDP6) and Vision 2030, focusing on catalytic infrastructure, productive sectors, and transformative initiatives aimed at long-term economic resilience and inclusive growth.
