Close to N$400m in DBN loans approved

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WINDHOEK – In the third quarter of 2013, the Development Bank of Namibia (DBN) approved loans to the value N$398.5 million, said DBN Acting Head of Lending, John Mbango.

Of this, N$332.4 million, or 83.4 percent, was allocated to large enterprises and N$66.1 million was approved for the SME sector.

“The bank has signalled its intent to shift its focus to larger enterprise as a means to create mass employment,” said Mbango, adding that “however allocations to the SME sector are still in range with previous approvals.”

The approvals are projected to affect 1 981 jobs, of which 565 are expected to be new, 569 temporary and 847 retained. Of the approvals, 91 per cent are allocated to previously disadvantaged Namibians, and 30 per cent of that is allocated to enterprises owned by women.

 

Mbango said the sector that received the highest allocation of 51.3 percent was the transport and communication sector followed by manufacturing at 18.8 percent and tourism at 12.7 percent.

 

Other projects of note include a new meat processing plant in the Otjozondjupa Region, for which a N$38 million loan was approved. The plant is expected to create 125 new jobs. DBN has also approved N$26 million for expansion of a charcoal manufacturing plant in the Otjozondjupa Region. The plant currently exports to the United Kingdom, Western Europe and South Africa. The expansion is expected to create 150 new jobs.

Projects with national impact received the lion’s share, totalling N$206,5 million, followed by the Otjozondjupa Region with N$75.5 million and the Erongo Region with N$54.8 million. Loans of N$288.2 million were approved in the tertiary industry, N$110.2 million in the secondary industry, while no loans were approved in the primary industry.

 

 

By Staff Reporter

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