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Local development bank inks MoU with Development Bank of Southern Africa

Local development bank inks MoU with Development Bank of Southern Africa

The Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA) last week signed a Memorandum of Understanding (MoU) that has the potential to boost development finance in Namibia.

In terms of the MoU, the two banks will establish means to cooperate on and co-finance projects that are of mutual interest to both parties.

DBN chief executive officer, Martin Inkumbi said the substance of the agreement will give both parties the ability to contribute to regional development and prosperity through opportunities in Namibia.

Although DBN’s mandate precludes it from providing finance for projects outside of Namibia, the two banks can jointly foster Namibian projects that will have a beneficial impact on Southern Africa, said Inkumbi.

The bank is seeking avenues to promote regional trade, regional integration, as well as developing robust infrastructure to support the regional transport and logistics sector.

Inkumbi also said that cooperation among the Southern African Development Community’s Development Finance Institutions (DFIs) is encouraged by the regional network.

Both the DBN and the DBSA are members of the network that coordinates and supports regional economic development and integration.

Asked about cross-border capital flows, Inkumbi said both institutions are in the Common Monetary Area, and there is no restriction on capital flows.

In addition to potential co-financing of projects of mutual interest, the MoU has, at its core, sharing of information and capacity building.

Among the elements of the MoU, DBSA will make available to DBN expertise from its international finance team, as well as product and sector expertise in the fields of energy, transport and water.

DBSA may also make available knowledge and implementation skills for bankable projects, as well as assist in project preparation.

DBN has established its own Project Preparation Fund to improve loan applications which it considers of vital importance for Namibian development.

Inkumbi said that the experience of DBSA in project preparation will be valuable to the Bank.

Caption: Development finance powers harness synergies as DBN and DBSA sign Memorandum of Understanding. Signing the Memorandum: Davies Pwele, DBSA Head: Business Development Africa, (left) and Martin Inkumbi, DBN CEO(right).

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