The Development Bank of Namibia (DBN) is making a significant impact on the country’s enterprise and infrastructure finance landscape.
According to a recent statement by the bank, the Development Bank Executive for Marketing and Corporate Communication Jerome Mutumba emphasised the importance of adapting finance to the evolving needs of the Namibian economy and enterprise ecosystem.
“As the economy evolves and new needs become apparent, it is vital that enterprise and infrastructure finance evolves as well. If not, the economy will begin to lag in terms of providing an enabling environment for economic activity, solving issues, and national competitiveness on regional and global stages,” he said.
Commercial sources of finance are often limited by their risk-aversion, which hinders their ability to adapt to changing economic conditions.
“Their duty to their investors is to deliver consistent returns and protect their customers in delivering fixed interest rates on savings and borrowing. All capital advanced or deployed has to be in a measured risk environment and adhere to the regulatory measures of central monetary policy,” Mutumba said.
However, DBN is stepping up to fill this gap. The bank is leading the way in financing models for enterprise and infrastructure, including privately owned renewable energy facilities, contract-based finance, and capital tranches for SME finance.
Additionally, the bank is offering mentoring and coaching programmes and incorporating environmental and social management in its financing decisions.
DBN is also actively promoting agri-industry, ICT and transformation, and skills-based finance for young artisans and professionals. The bank is researching a financial product to promote access to finance and inclusive economic participation for women and youths.
Mutumba emphasised the bank’s success in innovative finance, saying: “The bank’s success in innovating finance is rooted in its deep understanding of the sectors and enterprises that form its ecosystems. The future of the Namibian economy and the financing sector is in good hands.”
