…as DBN, DBSA sign new five-year MoU
The Development Bank of Namibia (DBN) is exploring the development of a dedicated financing product for Namibian municipalities and local authorities as part of a new five-year partnership with the Development Bank of Southern Africa (DBSA).
Under a Memorandum of Understanding (MoU) signed by the two development finance institutions, DBN will benchmark DBSA’s municipal finance model, including its products and credit assessment methodologies, to develop an approach suited to Namibia’s local authorities.
The initiative forms part of broader cooperation between the two banks aimed at identifying, preparing and financing bankable infrastructure projects in Namibia and the region.
Municipalities and local authorities require financing for infrastructure such as water, sanitation, roads, electricity and other public services, with the agreement providing a framework through which DBN can draw on DBSA’s experience in assessing and financing municipal projects.
The two institutions will share information, technical expertise, knowledge, systems and processes as they explore financing opportunities.
“The objective of this MoU is to formalize a non-exclusive framework of cooperation and facilitate cooperation between the Parties to a future collaboration between the Parties which relates to the identification, preparation, financing and implementation of bankable Infrastructure Projects,” the agreement states.
DBN and DBSA will also explore opportunities to jointly bid for transaction advisory and finance-arranging mandates linked to infrastructure development, implementation, operation, maintenance and evaluation.
The agreement provides for collaboration on project-preparation funding, which could support infrastructure projects through the early stages required to reach bankability and attract financing.
Beyond municipal finance, DBN is also set to draw on DBSA’s experience in equity investment.
DBSA will share its approach to investment criteria, financial instruments, deal structuring, governance, risk management, monitoring and exit arrangements.
The two banks may identify and jointly invest in eligible equity or quasi-equity opportunities, although individual transactions will remain subject to due diligence, internal approvals and separate agreements.
The MoU also provides for staff attachments and training between the institutions to strengthen technical capacity and knowledge sharing.
The agreement will remain in effect for five years.
