DBN committed to create employment opportunities

PHILLEPUS UUSIKU The Development Bank of Namibia (DBN) at the end of March 2020 increased its financing to N$ 1.138 billion compared to N$ 682.1 million for the 2018/19 period despite the recessionary climate.This, according to CEO Martin Inkumbi, is perfectly illustrated by the fact that the bank was able to grow the number of start-up approvals to 36 enterprises compared to 21 enterprises the previous period.The largest approvals by sector were allocated to land servicing (N$442.9 million) for servicing of 5 040 erven on 228.8 ha. Business services received the second largest allocation of approvals with N$177.0 million. The business services sector consists of enterprises that provide secondary support to business operations and tenders.High value allocations were approved for transport of goods, supplies of electrical equipment, supply of radiography and x-ray equipment and construction of premises for a legal firm. Approvals for manufacturing amounted to N$130.7 million. Notable projects include manufacturing of gypsum products as well as a plant for recycling plastics to be used in packaging.In terms of geographic distribution of the bank’s loan allocation for the 12-month period ending March 2020, Khomas received N$476.7 million in approvals followed by Oshana with N$138.3 million and Erongo with N$110.8 million. Enterprises with a footprint spanning two or more regions received approvals of N$185.4 million. Approvals for the period are projected to create 1 693 temporary jobs and 8 130 new permanent jobs. The bank defines permanent jobs as jobs with a duration of 3 years or longer. The large number of permanent jobs is due to the high number of ongoing jobs required to service land at the Ongos Valley Development. Sectors, regionsIn 2019/20 period the bank approved N$279.3 million for SMEs. Approvals of N$150.9 million went to business services followed by construction with N$67.4 million. Regionally, //Karas received the largest share of allocations in the amount of N$78.8 million. Khomas received N$45.4 million in approvals and Erongo received N$33.9. SME projects with a national footprint were allocated N$30.7 million in approvals. Based on the approvals, SMEs are projected to create 645 new, permanent jobs and 928 temporary jobs. Preliminary figures for the first two quarters to September of 2020/21 show the expected adverse impact of Covid-19 and risk-aversion on demand for SME finance and tourism and hospitality finance. However, aggregate approvals for the first two quarters stand at N$593 million.Prominent approvals for the first two quarters of the current financial period ending March 2021 include N$200 million for housing, N$46 million for land servicing and N$252 million to bolster meat processing, which supports the cattle farmers and is a significant exporting sector.ReliefSME approvals at N$50 million reflect the cautious approach of the sector in the face of the Covid-19 pandemic which has dampened consumer demand. No approvals were made for tourism and hospitality, which indicates that entrepreneurs in this sector are very cautious and not expanding their businesses at the moment. Inkumbi cautions that although the bank is heartened by the new approvals and the economic activity they represent, it is focusing on preservation of economic activity, and recovery for existing bank clients with a raft of measures that includes the bank’s repayment holiday for SMEs and tourism and hospitality. The bank will also consider repayment holidays for non-SMEs and enterprises outside the tourism and hospitality sectors based on the merit of each case.An additional N$500 million facility is expected to be announced for Covid-19 relief in the first quarter of 2021. This is in addition to the N$500 million made available by the Ministry of Finance, to be offered by commercial banks.“The bank is committed to financing Namibian economic activity and will take all feasible measures to ensure its health”, Inkumbi concluded.

DBN committed to create employment opportunities

Kommentaar

Republikein 2025-04-07

Meld asseblief aan om kommentaar te lewer

DBN committed to create employment opportunities

Kommentaar

Republikein 2025-04-07

Meld asseblief aan om kommentaar te lewer

MELD AAN

Advertensie