26 February 2013

Namibia: Development Bank of Namibia Targets Loan Book of N$1,7 Billion

THE Development Bank of Namibia (DBN) wants to grow its loan book by more than 20% this year and is targeting a total of N$1,7 billion in loans by the end of 2013.

Last year, the DBN's loan book grew to N$1,4 billion - less than the target of N$1,5 billion for 2012. This was the result of non-performing loans having exceeded target, the DBN said yesterday.

In total, the DBN granted loans worth N$518,4 million in 2012: N$103 million, N$81,4 million and N$242,9 million in the first, second and third quarters of the year, and N$91,1 million in the fourth. Loans approved in the final quarter of 2012 ensured 1 364 people of jobs. Of these, 472 were new jobs, while 507 were temporary ones and 385 were retained jobs.

"The approved loans have a 99,3% Previously Disadvantaged Namibian (PDN) impact, with 35,6% of the enterprises owned by women," the DBN said. The bulk of loans approved during the fourth quarter went to small and medium enterprises (SMEs). Nearly 60% of the loans, or N$54,3 million, were for SMEs, followed by N$36,9 million for larger private sector projects. In the third quarter, the majority of loans were approved for larger projects in the private sector.

No approvals were made to the public sector during the fourth quarter, the DBN said. The bulk of approvals went to the transport and communication sector between October and December 2012, while the bulk went to the business service sector in the third quarter.

"Projects of note are a recycling business, a restaurant specialising in traditional cuisine and a construction company that received finance to construct a clinic in the Kavango region," the DBN said.

In terms of regional spread, projects in more than one region received the lion's share of approvals, totalling N$24,3 million, followed by the Khomas region with N$15,6 million and the Otjozondjupa region with N$13,8 million.

In the tertiary sector, a total of N$72,8 million was approved, while N$16,9 million and N$1,5 million got the green light in the secondary and primary industry respectively.

Identifying projects of note, the DBN highlighted Landsberg Drilling and SLS Crushers in the Omusati Region.

"Gerlaine Landsberg of Landsberg Drilling and Blasting is challenging the perception that drilling and blasting is the domain of males. Landsberg's first major tender involved the supply of 300 000 tonnes of crushed stones for roads construction.

The Roads Authority awarded a tender to Grinaker-LTA, who sub-contracted her company to provide the crushed stones for the road from Okahao to Omakange," the DBN said.

SLS Crushers was awarded a N$10,6 million loan and created 31 new job opportunities.

The DBN also financed the Ongwediva Town Council with N$20 million for infrastructure development in the town, which saw the creation of erven for residential and commercial use.

Copyright © 2013 The Namibian. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.