DBN to support NDP 4 with sector specific lending

Home Business DBN to support NDP 4 with sector specific lending

WINDHOEK – On Tuesday last week the Development Bank of Namibia (DBN) CEO, Martin Inkumbi, announced the bank’s strategy for 2014 – 2018, saying DBN would place particular emphasis on three sectors identified by the fourth National Development Plan (NDP 4). 

Inkumbi outlined the bank’s targeted activities in the sectors, detailing that N$750 million is targeted at manufacturing, N$450 million at tourism and N$330 million at transport and logistics. He also identified infrastructural development as a key priority, pointing to development of serviced erven and energy distribution. He said the bank has a sound track record of development of erven and low-cost housing, and that the priority to develop affordable housing is where the bank could make a significant contribution.

The  bank would also place emphasis on development of enterprise in rural areas. Talking about this potential, he said that the bank would not finance agriculture, as this is the ambit of the Agricultural Bank of Namibia, but the DBN would seek opportunities to finance secondary and tertiary industries related to agriculture, as a source of employment, as well as a key for underpinning food security.

Inkumbi said that the DBN would begin to focus particularly on women and youth entrepreneurs as key drivers of Namibia’s future economy.

The DBN CEO went on to highlight four recent projects which embody the bank’s strategy for the coming four years.

Namibia Exclusive Safaris (NES) received finance to construct two lodges in the Omatandeka and Sorris Sorris conservancies in partnership with the conservancies through a joint venture agreement. At the end of the ten-year contract between NES and the conservancies, the lodges revert to the conservancies. The project will create 120 direct jobs, of which at least 40 will be for members of the conservancies.

Carbo Namibia, an existing charcoal processing and manufacturing plant in Grootfontein in the Otjozondjupa Region received finance to expand its processing capacity from 8 000 metric tons to 15 000 metric tons annually. Export markets include the United Kingdom, Western Europe and SADC (South Africa). The business expansion is expected to create 150 new jobs and retain 104 jobs.

DBN also approved finance for the expansion of Beefcor Meat Suppliers for a meat processing plant in Okahandja in the Otjozondjupa Region. The abattoir will be constructed as an A-Class abattoir to allow the business to export meat to markets such as the Americas, Asia and Europe. About 125 new jobs are to be created.

DBN recently also approved finance for the Oshakati Town Council to install bulk infrastructure such as roads, electricity, and water and sewer reticulation in a new area of Oshakati (Extension16) to create 270 new erven, mainly for residential, business and recreational purposes. At least 150 jobs are expected to be created over a period of 15 months.

Talking about the fourth quarter of 2013, Inkumbi said the DBN approved loans to the value N$158.8 million.

The approvals are projected to affect 1 928 jobs, of which 424 are expected to be new, 1 095 temporary and 409 retained. Elaborating on the high number of temporary jobs, Inkumbi said the figure was a reflection of the high number of approvals to contractors in the construction sector during the quarter. “Temporary jobs are a natural and valued component of job creation during the current phase of economic development in which Namibia finds itself. In addition to relief for the recipient of the job, and work experience, the inflows into the local economy strengthen local businesses or create opportunity for new enterprises. These in turn create yet more jobs and other opportunities,” said Inkumbi.

Of the approvals during the fourth quarter of 2013, 93 per cent is allocated to previously disadvantaged Namibians and 21 per cent of that is allocated to enterprises owned by women. Introducing a new field of measurement, Inkumbi said that allocations to youth enterprise made up 38 per cent of the approvals.

The DBN CEO also noted that the sector that received the highest allocations was the construction sector (61.3 per cent), followed by wholesale, retail trade and repairs (13.2 per cent) and manufacturing (8.9 per cent).


By Staff Reporter