Why does a 'development bank' finance private sector start-ups and expansions?
At DBN, we recognise that private sector businesses play a very important role in economic development. Private sector businesses have shown the ability
- Create employment
- Improve the quality of the workforce
- Diversify the economy
- Diversify ownership of equity
- Assist in decentralisation
- Produce substitutes for products and services that are currently sourced across borders
- Develop infrastructure
- Strengthen the base of fixed assets in the country.
Organisations with feasible business plans that create employment and satisfy a combination of the above requirements should contact DBN
Is a Black Economic Empowerment (BEE) component prerequisite?
BEE aims to redress the inequalities of the past by giving previously disadvantaged Namibian citizens economic opportunities previously not available to them. It includes measures such as equal employment opportunities, skills development, business ownership support, and preferential procurement.
BEE is not a prerequisite at DBN, as our portfolio of projects shows, but DBN considers diversification of ownership a critical factor in developing the economy.
DBN gives preference to loans which provide opportunities for formerly disadvantaged Namibian shareholders to participate in the day-to-day management of organisations, for instance management buy-outs.
Will DBN consider equity finance or shareholding?
Pure equity finance may be considered, subject to viable business plans and a contribution to development, but DBN prefers and encourages participation on the part of management.
Does the Bank finance infrastructure?
DBN provides financing for public sector projects and private public partnerships. Major infrastructure projects are judged on clear long term viability, capacity to generate income and long term benefit to the economy.