Mass housing and waterfront development in the Erongo Region get shot in the arm from Development Bank
The Development Bank of Namibia (DBN) has provided an additional N$150 million to Erongo Red for the financing of the second phase electricity distribution requirements for the Swakopmund mass housing development, and for the waterfront.
Erongo Red previously used N$250 million from the bank to finance its first phase project to upgrade aging distribution infrastructure to Walvis Bay.
Development Bank, CEO Martin Inkumbi said high quality power supply to the Erongo Region is of national importance.
Erongo is currently a major transport and logistics gateway to Namibia by virtue of the port of Walvis Bay. Mining, another major industry, also underscores the importance of the region, and its contribution to the economy, he said.
“Economic activity in the region is dependent on electricity. Without suitable distribution infrastructure, the region will not be able to attract additional enterprises and grow,” Inkumbi added.
Furthermore he said that distribution of electricity to families and individuals in affordable housing is a basic necessity for socio-economic wellbeing.
“Viewed in an economic light, Swakopmund must be able to attract and retain employees, in order for new enterprises to open and existing enterprises to grow. In this way, the upgrade to the distribution network will have an immediate impact and will secure the future,” he added.
Meanwhile, on the waterfront development, Inkumbi said it has created jobs during its construction phase, as well as permanent jobs, in addition to being a locale for enterprise.
“In order to attract commercial investment, Swakopmund, and Erongo Red, have to show demonstrate their commitment to providing enterprise, and investors, with the necessary infrastructure,” he said.
Currently the combination of infrastructure and enterprise are fields which the Bank nurtures with finance, and the Erongo Region is a good example of how finance can stimulate development and economic activity.
The Bank has approved loans of more than N$4.6 billion to the Erongo since its inception. Inkumbi urged other regions to approach DBN with plans for infrastructure. He added that the Bank has the capacity as well as the mandate to provide finance for growth.
Caption: At the signing ceremony on 24 May 2018 – DBN Chief Executive Officer, Martin Inkumbi (left) and Erongo Red Chief Executive Officer, Fessor Mbango.