By Hilary Mare
THE Development Bank of Namibia (DBN), has impacted the creation of about 7 500 jobs, through financing it provided, Chief Executive Officer Martin Inkumbi has revealed.
In the 15-month reporting period, from 1 January 2015 to 31 March 2016, the bank impacted the creation of 3 204 permanent, new jobs and 4 296 temporary jobs, Inkumbi said
He stated that in terms of financing, the bank saw high levels lending activity in the transport and logistics and construction sectors, in particular for the construction of the country’s bulk fuel storage facility, as well as for the building of residential units and commercial retail spaces. He also said that the tourism sector had also performed well, while the bank observed lower activity in the manufacturing sector.
“The largest component of the lending approvals, 33.30 percent, occurred in the transport and logistics sector, reflecting the high level of activity in the development of infrastructure. This was followed by construction, which received 17.21 percent. The tourism sector received 10.47 percent of allocations, a reflection of optimism in the tourism and hospitality sector. Manufacturing fared poorly, with an allocation of N$73.3 million or 3.66 percent,” he said.
According to the DBN Development Impact Report for 2016, regional allocations during the same reporting period were dominated by the Erongo region, which received 40.91 percent of allocations, followed by Khomas with 22.97 percent, and projects of national scope, with 13.37 percent.
“The high allocations to Erongo are attributed to a N$670 million loan approved for the fuel storage facility, under construction in Walvis Bay. Excluding the fuel storage facility allocation, the Erongo region would represent 7.43 percent only,” Inkumbi noted.
In the reporting period, DBN allocated N$1.2 billion towards infrastructure.
In terms of size, the bank is now custodian of assets of about N$11 billion, a resource which is continually deployed to nurture larger scale projects, consisting of enterprise and/or infrastructure. The bank, Inkumbi said, is expecting to play a larger role in finance for development, based on its growing capacity.
He added that the bank has made significant progress in sourcing capital, through issue notes and lines of credit from external private sector and institutional entities.
Concerning the evolution of the bank, Inkumbi says that DBN has adopted mechanisms, such as an advanced enterprise-wide risk management framework, as well as an environmental and social management system, which will better enable it to manage the risks inherent to financing start-ups in a dynamic economic environment. He said that the bank is currently implementing a treasury function, to further strengthen its liquidity and capital raising capacity.
He explained that stakeholders and borrowers may expect more, by virtue of a deeper pool of capital, but should also expect robust risk management, in keeping with the bank’s objective of maintaining financial sustainability. DBN is a national asset, Inkumbi said, and has the duty to preserve and sustain itself, as well as grow.
Talking about how he sees the future of the bank, Inkumbi stated that DBN will strive to respond to the priorities of the Harambee Prosperity Plan, as well as the Fifth National Development Plan. The bank, he said, also responds to emerging economic priorities, such as the need to provide social infrastructure, including affordable residential land and housing, in line with the government’s development programmes.
The bank’s future will be guided by the needs of the nation, and the goal of sustainable development, Inkumbi said. In light of this, he said, the best forecast for the bank, is to expect more from it.
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