The Development Bank of Namibia (DBN) has disbursed nearly N$750 million to small and medium-sized enterprises (SMEs) between 2020 and 2024, according to financial data reviewed by Foster Digital Education.
However, SME loan approvals have declined sharply over the five-year period. In 2020, DBN approved N$279 million in SME loans, but by 2024, approvals had fallen to N$96 million, marking a 66% decrease.
“DBN has disbursed nearly N$750 million to SMEs from 2020 to 2024. But I was equally disappointed to see that this figure has declined every year, dropping by 66% over the past five years. This raises important questions about access to finance for small businesses and whether this trend will reverse,” said financial and business analyst Fimanekeni Mbodo.
According to DBN’s financial dashboard, approvals to SMEs declined consistently, from N$156 million in 2021, to N$115 million in 2022, N$104 million in 2023, and N$96 million in 2024.
“While the sharpest drop occurred between 2020 and 2021 — a 44% decline — the continued fall, even at a slower pace, remains worrying for SME growth and economic development,” Mbodo noted.
DBN’s financial data also show that the bank’s net profit declined from N$229 million in 2020 to a loss of N$270 million in 2023, before recovering to a N$62 million profit in 2024.
Mbodo attributed the turnaround to the sale of part of DBN’s equity stake in Ohorongo Cement, a government grant under the Special Development Fund, and bad debt recoveries.
Meanwhile, DBN’s total assets shrank from N$9.5 billion in 2020 to N$7.3 billion in 2024, with Mbodo stating that this was partly due to accelerated repayments from the National Energy Fund, which represents nearly 40% of the bank’s portfolio.
Operational expenses also rose sharply, increasing from N$132 million in 2022 to N$181 million in 2024. According to Mbodo, employee costs accounted for 66% of total operational expenses in 2024.
“Professional service costs increased by 58% over the past year, driven by higher audit, consultancy, and legal fees,” he added.
Furthermore, DBN data show that the non-performing loans (NPL) ratio surged from 13.5% in 2020 to 36.0% in 2024, while the impairment ratio rose from 9.5% to 26.4%, indicating growing credit risk in the bank’s loan book.
