DBN to build on 2011 successes
The implementation of the Development Bank of Namibia’s strategy in respect of its balance sheet growth and the growth of its loan book and advances continued to be the bank’s priority in 2011 according to DBN CEO David Nuyoma.
“In terms of loan book growth, we are on target. We have had approvals of more than N$0.5 billion, which will soon be translated into actual disbursements or advances. The important indicators of the DBN’s contribution to the economy are the investments taking place, which shows the impact of loans and advances by the bank – actual dollars and cents – and the jobs that are being created as a result,” said Nuyoma.
The Development Bank also witnessed the actualisation of a number of projects approved in 2010 that are now operational. It experienced an increase in SME funding by introducing an SME term loan, a product offered through partner financial institutions in the past.
“The implications of the growth of the bank’s business necessitated a refinement of the institution itself, in order to be able to continue to cope with the increased responsibility and volumes of activity,” noted Nuyoma.
The DBN did this by streamlining organisational effectiveness through expansion of its management information systems to accommodate the various activities of the bank and so increase efficiencies in the management of data.
The year further saw a comprehensive assessment of measures to ensure the sustainability of the bank in the context of its long term commercial viability, and the development of a framework to enable the tracking of all the factors related to this.
“With the framework, any movement with balance sheet impact will be detected and addressed,” Nuyoma added.
The bank’s target balance sheet strategy saw the development of an organisational structure aligned to the new corporate direction.
“We have to align ourselves in a manner that is robust, efficient, effective, and remain conscious of our own sustainability as an organisation.
“The corporate strategy will help us look at ourselves and work on aspects that can contribute to organisational perfection or refinement. The framework is comprehensive and can become a model for other institutions if we succeed,” Nuyoma noted.
According to Nuyoma, a key challenge faced in the past year included operating in an environment marked by yet another economic slow-down, which has had a dampening effect on large projects in particular.
“The bank’s focus for 2011 was to identify whether the organisation was in a position to cope with the demands of a rapidly growing institution and fulfilling its mandate in a sustained manner. As a result, 2011 saw us re-looking at ourselves, going back to our mandate and looking at how efficient and effective we are. We also looked at the bank’s sustainability, which is a key issue. The experience of the past year and the strategic framework set for 2012 shows us that there are certain lines that we won’t be able to cross. The bank’s sustainability is of great importance if it is to continue to contribute meaningfully to Namibia’s economy. Based on the foundation and tenor set for the coming year, I’m really looking forward to 2012,” he concluded.