Development Bank of Namibia (DBN) CEO Martin Inkumbi has announced the Bank’s new positioning, “Expect more.” He says the new positioning statement reflects both the Bank’s transformation, as well as its ambition for the future.
In terms of the transformation, Inkumbi says the Bank has grown substantially since its inception, and evolved.
In terms of size, the Bank is now custodian of assets of approximately N$11 billion, a resource which is continually deployed to nurture larger scale projects consisting of enterprise and / or infrastructure. The Bank, Inkumbi says, is expected to play a larger role in finance for development, based on its growing capacity.
He adds, that the Bank has made significant progress in sourcing capital through issues notes and lines of credit from the external private sector and institutional entities.
Concerning evolution of the Bank, Inkumbi says that DBN has adopted mechanisms such as an advanced enterprise-wide risk management framework, as well as an environmental and social management system that better enable it to manage the risks inherent to financing startups in a dynamic economic environment. He adds that the Bank is currently implementing a treasury function to further strengthen its liquidity and capital raising capacity.
In this case, he explains that stakeholders and borrowers may expect more by virtue of a deeper pool of capital, but should also expect robust risk management, in keeping with the Bank’s objective of maintaining financial sustainability. The Development Bank is a national asset, Inkumbi adds, and has the duty to preserve and sustain itself, as well as grow.
In terms of its impact on enterprises, Inkumbi says, in addition to the ability to finance larger projects from a deeper pool of assets, the Bank now gives more support to its borrowers and potential borrowers who require such support through a formalized mentoring and coaching program. He describes this as a combination of advisory services prior to landing, and capacity strengthening and development through a network of business experts.
He says that each enterprise and project is regarded not just as a financial asset, but also as an asset for the Namibian economy, and so the Bank’s philosophy is to provide the additional support in order to mitigate risks that arise after lending, and ensure the long-term viability of the initiative that the Bank finances.
Internally, Inkumbi says he believes that the new positioning will have a galvanizing effect on staff. The Bank, he says, provides an exceptional environment for personal development, and this has been the basis for a high degree of motivation, and high level of expertise. The Bank’s staff are driven by the concept of personal excellence, however, he believes that the new positioning will drive members of the team to expect even more from themselves.
Asked how he sees the future of the Bank, Inkumbi states that the Bank will strive to respond to the priorities of the Harambee Prosperity Plan as well as the expected Fifth National Development Plan. The Bank, he says, also responds to emerging economic priorities, such as the need to provide social infrastructure such as affordable residential land and housing in line with the Government’s development programs. The Bank’s future will be guided by the needs of the nation, and the goal of sustainable development. In light of this, he concludes, the best forecast for the Bank is to expect more.
Development Bank of Namibia (DBN) Senior Communications Manager Jerome Mutumba has announced that the Development Bank of Namibia has provided finance for African Deli, a start-up food exporter at Walvis Bay, in the Erongo Region.
African Deli will manufacture ready-made traditional African meals using beef, lamb and chicken. This will include beef and lamb matangara, which is known as mogodu in South Africa. The DBN finance is being used for plant and equipment.
Says Jerome Mutumba, Africa Deli came to the Bank with an impressively researched proposal. In terms of in-depth consumer demand studies, and following recipe development, Gauteng Province, with 8,3 million potential consumers, was identified as the ideal market penetration point, with the rest of South Africa, followed by SADC member states, as next steps in the company’s expected expansion.
In terms of product appeal, Mutumba says the product is targeted at the emerging middle class, who have strong links to traditional culinary culture, but limited time for the lengthy preparation process required for traditional meals. Africa Deli’s products are packaged in microwaveable pouches, which saves a considerable amount of time in preparation of the meal.
He goes on to say that ready meals have been dominated by European and Mediterranean culinary styles, and the Bank is proud to be associated with an addition to the range of African foods available on shelves. Talking about African cuisine in retail, he points to chakalaka as an example of successful uptake of a traditional African dish. Africa Deli’s range of meals can add to the range of products.
Concerning the location of the factory in Walvis Bay, Mutumba says the location is ideal as it provides access through SADC corridors, as well as maritime shipping routes. The set of industries in Walvis Bay can provide an excellent ecosystem for African Deli, with transport and logistics featuring strongly in the Port’s favour. Walvis Bay is also well-positioned to receive unprocessed ingredients required for manufacturing of the meals.
Mutumba notes that the company is a perfect example of DBN’s financing ambition. Manufacturing has been singled out as one of the key elements of the Harambee Prosperity Plan (HPP). As African Deli is both a manufacturer, and exporter, and will require inputs from local agriculture and agri-industry, as well as transport and logistics, the benefits of financing the company will spread to other sectors of the economy.
He encourages other entrepreneurs in the Erongo region to approach the Bank’s office in Walvis Bay to discuss their ambitions and find out about the Bank’s requirements.
Mutumba concludes by saying that Erongo is a region that keeps on giving to Namibia’s national economy, and the Bank treats it as a gateway for development in light of this. In the period between 2004 to January 2017, the Bank has provided more than N$4,4 billion in finance to the region. In line with its national gateway status, the majority of that finance, N$3,3 billion was allocated to transport and logistics. This was followed by allocation of N$451 million to the electricity sector and N$197 million to business services.
Development Bank of Namibia (DBN) Erongo Portfolio Manager, Simeon Unotjari Kahona, has announced that the Bank is seeking opportunities to stimulate more demand for finance in the Erongo region.
In terms of the Bank’s additional focus on infrastructure and business projects, identified in the Harambee Prosperity Plan (HPP), the Bank will seek out projects promoted by private entrepreneurs, through public private partnerships (PPPs), as well as projects identified by the regional council and local authorities. However the Bank will also seek to finance projects that are unique to the economy of the Erongo region.
Talking about the requirement for energy, noted in HPP, Kahona says that the Bank has advanced N$280 million to Erongo RED to ensure supply of electricity, financing was also advanced for Arandis solar project and is also engaged in project finance to secure bulk fuel supply for Namibia.
Among the additional projects that the Bank envisages financing are local authority projects, through PPPs, to develop serviced land, for affordable housing. Kahona adds that the Bank will also finance social infrastructure in Erongo, noting that economic development should walk hand-in-hand with socio-economic development, if greater levels of economic activity are to be of benefit to citizens of the region.
Kahona also says that the region has the potential to strengthen its own internal economy to serve the needs and wants of its enterprises. The Bank believes there is more opportunity to finance light engineering industry that services marine enterprises and the transport and logistics sector, the developing energy sector, and the marine products processing subsector. These projects should have an annual turnover, or projected annual turnover, of N$10 million or more.
In terms of local consumer demand, Kahona announced N$25 million in finance for local food manufacturing, for African Deli, an enterprise established to manufacture instant meals with an African flair. This, he says, shows that there is potential in Erongo to fulfill regional demand, that can extend nationally and further into the SADC market.
Kahona concludes by saying that Erongo is a region that keeps on giving to Namibia’s national economy, and the Bank treats it as a gateway for development in light of this. In the period between 2004 to January 2017, the Bank has provided more than N$4,4 billion in finance to the region. In line with its national gateway status, the majority of that finance, N$3,3 billion was allocated to transport and logistics. This was followed by allocation of N$451 million to the electricity sector and N$197 million to business services.