Guest Contributor | Jun 1, 2021 | 0
Development Bank informs on borrowing threshhold
Following queries from potential borrowers, Development Bank of Namibia (DBN), Communication Manager Jerome Mutumba has issued a public statement that borrowing from the Bank is subject to a business’s annual turnover of N$10 million or more, and is not limited to loan amounts of above N$10 million.
According to the bank, the turnover threshold is based on the national Policy on Micro, Small and Medium Enterprises’ definition of SME enterprises.
He said that start-ups that could confidently project a turnover of N$ 10 million or more can also obtain loans from the Bank that are below N$10 million.
Asked about the minimum requirement for finance he stated that the Bank has a minimum borrowing threshold of more than N$150,000. In the Bank’s experience, he said, there was very little requirement for lower amounts, as these could be financed from turnover or acquired with own sources of capital
Talking about start-up amounts, Mutumba said there is ample evidence on the Bank’s portfolio that an enterprise can achieve turnover of N$10 million on a capitalisation amount of less than N$10 million.
He said the new thresholds are a reflection of the growing requirement for larger financing amounts as Namibia’s economy develops.
He added that the Bank is particularly seeking to stimulate large enterprise development in the key NDP4 sectors manufacturing, transport and logistics, and tourism. He also encouraged local authorities and state-owned enterprises to contact the Bank with potential infrastructure projects.
By focusing on the growing requirements of larger enterprises, the Bank is able to provide highly responsive service to entrepreneurs who need the best possible financial support for establishment and growth of their enterprises, he concluded.