By Business Reporter
THE Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA) have concluded a memorandum of understanding (MoU) that has far-reaching impacts for development finance in Namibia.
In terms of the MoU, the two banks will establish a mechanism to cooperate, in terms of the co-financing of projects that are of mutual interest to both parties.
According to DBN Chief Executive Officer, Martin Inkumbi, the substance of the agreement will give both parties the ability to contribute to regional development and prosperity, through opportunities in Namibia.
Although DBN’s mandate precludes it from providing finance for projects outside of Namibia, DBSA and DBN can jointly foster Namibian projects, which will have a beneficial impact on Southern Africa, said Inkumbi.
DBN is seeking avenues to promote regional trade and regional integration, as well as to develop robust Namibian infrastructure, in order to support the regional transport and logistics sector.
Inkumbi said that cooperation among SADC development finance institutions (DFIs) is encouraged by the SADC-DFI Network, of which both the DBN and the DBSA are both members.
Asked about cross-border capital flows, Inkumbi said both institutions are in the Common Monetary Area, and therefore there are no restrictions on capital flows.
In addition to the potential co-financing of projects of mutual interest, the MoU has at its core the sharing of information and capacity building.
DBSA will make available to DBN the expertise from its international finance team, as well as product and sector expertise in the fields of energy, transport and water, as part of the deal.
DBSA may also make available knowledge and implementation skills for bankable projects, as well as assist in project preparation.
DBN has established its own Project Preparation Fund, to improve loan applications which it considers of vital importance for Namibia’s development.
Inkumbi said that the DBSA’s experience in project preparation will be valuable to the Namibian development bank.
Talking about the broader ramifications of the agreement, Inkumbi said that the prosperity of nations and regional stability is best built on cooperative economics.
He said that the SADC Development Finance Network is a benefit to all.
Regionalisation holds many economic benefits, and DBN is proud to contribute to an equitable economic future for all, Inkumbi added.
Confidente. Lifting the Lid. Copyright © 2015