Development Bank of Namibia offers finance for construction

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.

Feb 20 2018

Development Bank yields positive results in 2017

The Development Bank of Namibia (DBN) has expressed satisfaction with its financial performance in an annual report for the financial year that ended 31 March 2017.

 

Speaking about the results, DBN CEO Martin Inkumbi says, the Bank’s loans and advances grew to N$6.7 billion, up from 3.8 billion for the 2016 period. The Bank’s profit was N$172 million. The bulk of this will be redirected to lending, with portions set aside to maintain prudential requirement liquidity standards, for the Project Preparation Fund and for corporate social investments (CSI).

 

The Project Preparation Fund (PPF) is deployed at the Bank’s discretion, to assist projects with exceptional potential development impact to further prepare business plans and improve their sustainability. In 2017 N$2.7 million was disbursed from the PPF to prepare projects in the fields of renewable energy, and affordable land and housing.

 

In total, the Bank’s assets grew to N$7.8 billion at 31 March 2017, compared to N$4.6 billion at 31 March 2016.

 

Asked about loan impairments, Inkumbi says that the Bank’s impairment ratio is 2.9%, below the target of 3% that the Bank imposes on itself. He points out that impairments are delayed repayments, and do not constitute bad debts until the Bank is forced to take legal action. He goes on to say that the level is substantially lower than the 7% benchmark of the Association of African Development Finance Institutions (AADFI).

 

In terms of its impact, Inkumbi says the Bank projects that its approvals in 2017 created 2,197 temporary jobs and 1,607 new, permanent jobs. Of its approvals, N$894 million was allocated to previously disadvantaged Namibians, with N$257 million approved for women entrepreneurs and N$148 million for young entrepreneurs.

 

The Bank, Inkumbi says, has also made strides towards addressing national issues. N$436 million was allocated to construct 736 housing units, and N$114 million was approved for servicing of 498 erven. Allocations to energy generation amounted to N$462 million.

 

For the financial period that ended March 2017, the Bank has observed lower credit demand in some key economic sectors such as manufacturing and tourism. Allocations to the manufacturing sector for the period amounted to N$140 million. The tourism and hospitality sector received allocations of N$62 million. The Bank’s cumulative investments in these two sectors however remains satisfactory at N$585 million for manufacturing and N$ 452 for the tourism as at the end of March 2017.The transport and logistics sector received allocations of N$2,804 million. These sectors were identified as key to economic development in terms of NDP4, and are still noted as key sectors in NDP5. The Bank does not engage in direct lending to primary agricultural projects, but it does finance agro-processing businesses.

 

Inkumbi continues by saying that largest regional allocation went to Erongo (N$2,968 million), followed by Khomas (N$524 million) and Omaheke (N$172 million). Projects crossing regions received N$120 million in approvals. In the densely populated northern regions, Oshana led approvals with N$143 million, followed by Omusati with N$130 million.

Jan 12 2018

2017 Good Business Awards & Innovation Award

Celebrate Enterprise and Innovation Excellence in 2017

 

Leaders and captains of Namibian industry will gather on 15 November 2017, to applaud the best of Namibian enterprises and innovation, as the Development Bank of Namibia once again hosts the prestigious Good Business Awards and Innovation Award. Join us in recognising Namibian excellence, financed and supported by the Development Bank of Namibia.

 

 

2015 Winner Medi-rad
2016 Winner Kiyomisandz 

Learn about our 2017 winners: 2017 Good Business Awards & Innovation Award

 

Nov 15 2017

Expect more finance in Hardap and //Karas

The Development Bank of Namibia (DBN) will introduce its financing for enterprise and infrastructure – and requirements for financing – from 09.10.2017 to 13.10.2017, in Hardap and //Karas.

Potential borrowers for large and SME enterprises are invited to attend information sessions to be held in the following towns :

 

 

Town

Location

Time

Date

Rehoboth

 Rehoboth Community Hall

10h00 AM - 11h00 AM

 Monday - 09.10.2017

Mariental

 Mariental Hotel

11h30 AM - 13h00 PM

Tuesday - 10. 0.2017

Lüderitz

Lüderitz Nest Hotel

11h30 AM - 13h00 PM

Thursday - 12.10.2017

Oranjemund

Zacharia Lewala Community Hall

12h00 PM - 16h00 PM

Friday  - 13.10.2017

 

For more information Call Edla Kaveterua on 061 290 8000 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

Oct 05 2017

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