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DBN approves loans worth more than N$100 million

DBN’s head of lending, Martin Inkumbi (left) and the bank’s head of research, Michael Humavindu. (Photograph by Hilma Hashange)The Development Bank of Namibia (DBN) has approved financing for 88 businesses to the tune of N$103.7 million between January and March 2012. Of the beneficiaries, 98% are from the previously disadvantaged group and 19% are female owned businesses.
A total of 36.8% of loans approved belong to the private sector and the other  63.2 % are small and medium enterprises. In terms of job creation, 678 new and 846 temporary as well as 975 retained jobs are expected to be provided during this quarter.
The bulk of the loans went towards construction, which received a loan approval worth  N$ 28.1 million. No approvals were made for the public sector.
The quarter saw the DBN approving applications from all regions in the country, as a result of the bank’s efforts to continuously reach out to entrepreneurs in all locations.
However the bulk of projects financed in the first quarter went towards projects in the Khomas region, which received a share of 32.7% followed by the Oshana and Otjozondupa regions with 22.3% and 6.7% respectively. According to DBN’s head of research, Michael Humavindu, economic activities are high and significant in these three regions and are considered to be the most densely populated regions in the country.
“The bank also tries to make changes by giving loans in other areas as well,’’ Humavindu added.
Talking about the spread of activities across the country, DBN’s head of lending, Martin Inkumbi, highlighted activities in the Caprivi, Erongo and Kavango regions. Since the DBN’s inception, loans totalling N$359.8 million have been advanced for projects in these regions, with Caprivi receiving N$ 59.4 million, Erongo N$186.3 million and Kavango region getting N$ 114.1 million.
“These regions, with the exception of parts of Erongo, are remote, making outreach a challenge. The bank, however, works to reach in these areas through regional visits and by making information available electronically to ensure that, while remote, potential clients from towns in these areas are not excluded from our offering,” said Inkumbi.
Most of the financing in the Caprivi is concentrated in the hospitality and construction sectors, while the concentration is on transport, construction and communications in the Erongo region. In the Kavango region, projects are concentrated in the manufacturing, transport and wholesale and retail sectors. In these regions, DBN financed a total of N$11.4 million in the primary industry, N$ 118.5 million in the secondary industry and N$ 230.1 million in the tertiary industry.
The DBN loan book currently stand at N$ 1.376 billion against the target of N$ 1.6 billion for the period ending December 31, 2012  with the impairment ration  at 4.1 % against the targeted 5 %.

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