The Development Bank of Namibia (DBN), has developed a range of products to support the construction industry, says Senior Manager: Corporate Communications, Jerome Mutumba.
Motivating the Bank’s interest in the sector, he says that all economic development will directly or indirectly require construction, typically early in the lifespan of an economic initiative. To illustrate this, he sketches the scenario of a developing town. In order for the town to have inhabitants, housing must be constructed. To make those households sustainable, infrastructure must be constructed. The same applies to commercial infrastructure which is needed to sustain operations and employment.
Still on the topic of employment, Mutumba says that ongoing employment is a prerequisite for development, and although the sector produces a number of permanent jobs, it produces cycles of temporary employment. This form of job creation injects cash into the economy through the consumption that it enables, as well as providing temporary relief for families and individuals.
In light of the sector as a central hub of good development impact, Mutumba says that support to construction is one of the Bank’s natural fields of activity.
The Bank’s range of products, Mutumba says, is the optimum mix to support construction. Products are geared for both PPPs and local authorities, engaged in development of infrastructure, vehicle and asset financing in terms of which moveable assets including vehicles are financed by the Bank through instalment sale agreements (ISAs), and term loans. Contract based finance is available to support tenders. Performance guarantees can also be provided.
Mutumba adds that the Bank has a sound track record of finance for servicing land, as well as residential units, in regions across Namibia. The Bank does however require that enterprises that are constructing business premises such as offices, factories and warehouses should apply directly to the Bank, as the final beneficiaries, rather than contractors.