DBN sinks N$7 billion in projects

June 14, 2022

The Development Bank of Namibia (DBN) has distributed more than N$7 billion in loans to projects or businesses and enterprises in the country, The Brief can exclusively review.

Martin Inkumbi, the bank’s Chief Executive Officer, recently told The Brief in an interview that the DBN has been “supporting employment creation and the provision of goods and services in the country,” in the past 17 years.

According to Inkumbi, the DBN has achieved major milestones with its lending focus that is designed in line with the government’s development priorities as detailed in the national development plans.

“The government has identified specific sectors that could contribute to the economic growth and prosperity of Namibia,” he said, adding that these include manufacturing, transport and logistics, business services with focus on tourism as well as agriculture.

He said the bank had invested more than N$800 million in tourism projects.

“The bank was also exposed in the manufacturing and transport sectors with more than 50% of the N$7 billion going to the three sectors. DBN does not fund agriculture projects yet because that is the mandate of Agribank but it can provide finance for agricultural enterprises,” Inkumbi said.

“More than N$1 billion had been approved for the renewable energy sector. This sector has been on focus because electric power is the main ingredient in development and as Namibia is a net importer of electricity DBN has been part of finding a solution to the electricity challenge.”

Inkumbi said the bank was also focusing on renewable energy because it is clean energy and hence the bank has financed the Independent Power Producers.

He added that the financial institution looks at whether the project to be financed is viable to repay the loan and still cover other overheads.

“We also look at what the development impact of the project is before we decide on financing it,” he added.

As of May, the DBN had to date funded renewable projects in the country valued at N$1.231 billion.

Rate this item
(0 votes)
Last modified on Thursday, 16 June 2022 19:17