Development Bank encourages early loan applications
Development Bank of Namibia, CEO, Martin Inkumbi is encouraging project initiators to approach the bank for early funding.
Inkumbi said to ensure that financial resources are available, especially when required for large-scale projects and enterprises, applicants should align them to the pillars of the Harambe Prosperity Plan (HPP), which he said the prioritisation is not a shift away from the Bank’s focus on key sectors identified by National Development Plan 4 (NDP4), but an additional focus for the Bank.
“The priority infrastructure areas, to which the Bank may contribute with finance, are energy, water, transport and ICT. The Bank will consider projects in these areas, promoted by private entrepreneurs, through public private partnerships (PPPs), as well as public institutions such as State Owned Enterprises (SOE),” he said.
According to Inkumbi what differentiates the applicants for financing, is a solid partnership with other service providers, giving the examples of Erongo RED, that secured power supplies at the coast as an SOE, and Omburu Sun Energy securing its financing for a utility owned and operated by a private sector entity.
“The Bank will continue to provide finance for larger enterprises, with annual turnovers of more than N$ 10 million, in the key NDP4 sectors of manufacturing, transport and logistics, and tourism,” he added.
Talking about other aspects of transformation in HPP, Inkumbi said although the Bank seeks returns to sustain its activities through repayment of finance with interest, as well as capital preservation through the requirements of collateral and /or guarantees, it also contributes to socio-economic transformation through its corporate social investment programme without expectation of returns.
Asked about financial sustainability in light of the current realignment of fiscal resources by the Government, Inkumbi said the Bank is one of the agencies that can fill the temporary gap in provision of finance, provided that projects are in line with the focal areas of HPP.