The Development Bank of Namibia (DBN) has provided more than N$1 billion in financing to small and medium enterprises (SMEs) over the past decade as it steps up efforts to improve access to finance for entrepreneurs, particularly young people.
Speaking at an Information Sharing Session on “Access to Finance: Opportunities for the Youth”, hosted by Khomas Region Governor Sam Nujoma, DBN Regional Manager Heinrich Tsauseb said the funding reflects growing demand from entrepreneurs and the bank’s commitment to supporting Namibia’s development agenda.
“Over the last 10 years, it’s about N$1 billion plus that we have funded directly to SME businesses. Especially if you look at the last seven years, that trend has been going up in the SME space. Meaning that there are young entrepreneurs coming for funding, looking for opportunities, and funding is available,” Tsauseb said.
He said the state-owned development finance institution has financed more than N$20 billion worth of projects over the past 22 years, supporting investments ranging from major infrastructure developments to SME financing.
According to Tsauseb, DBN’s mandate is to finance registered businesses that contribute to national development priorities, including Vision 2030 and successive National Development Plans.
“Our primary aim is to provide funding to businesses. Since we are a state-owned entity, our role is to assist government in implementing its national development plans by unlocking business opportunities through finance,” he said.
DBN classifies SMEs as businesses with an annual turnover of less than N$10 million, while larger businesses are financed under a separate portfolio.
The bank currently provides financing ranging from N$150,000 to approximately N$380 million for a single project or a combination of projects.
“It can be for working capital, asset financing or even buying into an existing business where owners are looking for equity investment to grow the business,” Tsauseb said.
He said one of the bank’s flagship initiatives is the National Youth Development Fund, which finances youth-owned businesses to stimulate employment.
“The primary aim is to fund youth-owned businesses with the objective of creating jobs. We know unemployment is high among young people, so by providing access to finance they are able to employ themselves and other young Namibians,” he said.
Under the programme, qualifying businesses can access loans ranging from N$60,000 to N$1 million at concessionary interest rates of between 2% and 4%.
“It is a loan, not a grant. There is an expectation of repayment because we want the fund to remain sustainable and continue supporting future generations of entrepreneurs,” Tsauseb said.
He added that the fund does not require traditional collateral, making it easier for young entrepreneurs to access finance.
“There won’t be an expectation for applicants to provide collateral. However, the assets being financed can serve as collateral for the facility,” he said.
The programme also offers grace periods of up to 12 months, depending on business cash flow requirements, with repayment periods of up to five years.
Applicants are required to submit a three-page application form, a national identity document and a business plan. Business registration is only required after loan approval.
“We first assess whether the business is viable. Only after approval do we ask applicants to register the business because we understand registration comes with costs,” Tsauseb said.
Existing businesses applying for funding must be registered and in good standing with both the Namibia Revenue Agency (NamRA) and the Social Security Commission.
Tsauseb also highlighted another youth-focused financing product targeting artisans and professionals aged 18 to 35, including mechanics, engineers, accountants, dentists and lawyers seeking to establish their own businesses.
The facility provides collateral-free financing of between N$50,000 and N$1 million, together with mandatory mentoring and business coaching.
“We realised there were many young graduates from vocational training centres without employment. This programme enables them to start their own businesses while creating jobs for others,” he said.
Meanwhile, Khomas Region Governor Sam Nujoma said the region is home to Namibia’s largest concentration of young people, representing its greatest reservoir of talent, ambition and enterprise.
He said access to finance remains one of the biggest barriers facing aspiring entrepreneurs.
“The question before us is therefore one of the central economic questions of our time: how do we place capital in the hands of those with the courage to build? It is the micro, small and medium enterprises that answer that question. They turn household skills into livelihoods, they hire our people, and they keep money circulating within our constituencies rather than draining away from them,” Nujoma said.
He added that no country has successfully tackled unemployment or built a strong middle class without a thriving SME sector.
“If we are serious about prosperity, we must be serious about financing the enterprise that creates it,” he said.
