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Development Bank encourages borrowing to establish larger enterprises in the South

Development Bank encourages borrowing to establish larger enterprises in the South

The Development Bank of Namibia (DBN) is facilitating information sessions in the Hardap and //Karas regions to encourage borrowing to establish larger enterprises, SMEs and infrastructure.

According to the bank’s Senior Communication Manager, Jerome Mutumba, borrowing in the two regions has been at low levels since 2016, therefore the Bank’s visit is intended to stimulate demand.

“The regions have potential for enterprise development, particularly in the form of secondary sector offshoots of the agricultural sector, such as agri-processing and food manufacturing. The Bank is also particularly interested in the NDP5 sectors transport and logistics, and tourism,” Mutumba said.

Talking about the South, Mutumba said that the Hardap and //Karas regions are characterised by poverty, however, he said, this can be addressed with finance that stimulates enterprise and infrastructure development.

“Finance and enterprise go hand in hand. Enterprise requires infrastructure, and the construction of infrastructure is justified by the needs of enterprise. The Bank is looking for a healthy mix of financing opportunities for actors in both fields, and with its visit to the regions, is opening doors to them,” he added.

Mutumba also added that the Bank will be seeking to source financing opportunities from local authorities, seeking to expand infrastructure in the towns.

Mutumba said that logistics is likely to grow in the near to middle-term on the basis of development of trade, and import and export activities, between Namibia and the northern Cape in South Africa.

he added that the Bank expects a boom in Lüderitz in the middle to long-term, and that this will place pressure on the town’s infrastructure.

“The Bank’s finance for infrastructure will assist in alleviating needs for infrastructure, as well as stimulating the local construction industry,” Mutumba said.

“The Bank, and the nation, understand the need for transformation of regional economies, and is holding out a hand with flexible financing packages that will materially improve prospects for development. We expect more from Hardap and //Karas, and so entrepreneurs and town councils can expect more from the DBN,” he said.


 

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