By Emma Kakololo
The Development Bank of Namibia (DBN) has signed a N$24,5 million credit line with a German Development Bank, Kreditanstalt fur Wiederaufbau (KfW).
The soft loan repayable over 30 years with an interest rate of two percent, would in turn be extended to local projects to promote the country’s economic and developmental growth.
“When we started the DBN, we knew that we were taking on a mammoth task,” said DBN’s Chief Executive Officer, David Nuyoma.
“Development is a complex undertaking and in the past four years, I’ve come to think that development finance is even more complex. Instead of running for the hills though, we decided to find a way of making our task of financing industrial development less daunting.”
He said the funds would be used to support the private sector, infrastructural development, job creation and the development of less developed regions.
“We have noted over the years that as our economy expands, the scope and depth of our financial services sector need to be broadened and strengthened.
“This is particularly significant because a number of investments, especially our infrastructural development efforts, have been almost entirely financed from external sources. These funding arrangements have caused our foreign debt to reach unacceptable proportions.
“DBN is therefore charged to mobilise resources in order to fund our major development initiatives,” Nuyoma said, quoting the Father of the Nation, Sam Nujoma.
“The agreement we’re signing today brings us closer to realising this calling. It is also a demonstration of how we can continue to nurture and shape, linkages between Namibia and Germany and its institutions.
The agreement forms part of the overall cooperation framework between Namibia and Germany.
Projects that have been funded by DBN since March this year have so far created 1ǟ