DBN loan book grows by N$207 million

The Development Bank of Namibia has approved loans totalling N$ 207 million in the second quarter of 2013, Acting Head of Lending, Heike Smith has said.
The approved loans are projected to have an impact on more than 2000 jobs of which 375 will be new, 567 temporary and 1,079 retained.
Of the approved loans, 63.4% in value was allocated to larger private and public sector projects while 36.6% was approved for the SME sector. Loans to both the public and private sector amounted to N 131.3 million and loan approvals to the SME sector amounted to N 75.7 million .
“The most significant impact of approvals for this quarter,” said Smith, “were in employment creation and retention. Namibia’s current unemployment rate is 27.4% and it is imperative to focus efforts on employment creation and retention as per the DBN mandate.”
At 34.4%, the transport and communication sector was the biggest recipient followed by the public administration sector (24.2 %) and the construction sector (13.5%t). Finance allocated to the transport and communication sector saw the creation of 21 new jobs, 100 temporary jobs and 763 retained jobs.
Projects of note include a steel manufacturing project in the Khomas region, for which a N$7 million loan was approved. This project which manufactures steel palisades, will create eight new jobs. Another notable project is construction of a clinic in the Otjozondjupa region. In the Oshana region, a project in the construction sector will be responsible for 55 new, 20 retained and 55 temporary employment opportunities.
Projects in the Erongo region received the lion’s share of approvals during the second quarter totalling N$60.3 million followed by the Oshana region with N$58.9 million and the Khomas region with N$ 32.9 million.
Loans of N$176.2 million were approved in tertiary sector, N$ 30.8 million in the secondary sector while no loans were approved for primary industries.
The approvals were almost triple the loans granted in the first quarter when loans worth N$75.8 million were approved. Commenting on the approved loans, Acting DBN CEO Martin Inkumbi said: “A lower level of applications in late 2012 reduced approvals in the first quarter of 2013. The current level of approval… is however a heartening sign that various initiatives are picking up steam again, and that confidence among entrepreneurs is resulting in higher levels of activity.”