DBN invests N$154m in Kavango East over 10 years

The Development Bank of Namibia (DBN) says it has invested N$154.45 million in Kavango East over the past decade, with the bulk of the funding going towards housing, construction and business services.

The figures were revealed by DBN acting chief investment officer Cliftoline Nauses during an open session with the business community in Rundu last week.

Housing received the largest share, at N$53 million, accounting for 34.3% of the total. Construction followed with N$40.99 million (26.5%), while business services received N$30.54 million (19.8%).

Together, the three sectors accounted for more than N$124 million, or more than 80% of DBN's investment in the region over the past 10 years.

Other sectors funded during the period include commercial property, manufacturing, wholesale and retail trade, health and education.

Nauses said DBN finances registered Namibian businesses through project finance and corporate finance structures, with a focus on projects that deliver long-term economic benefits.

Unlike commercial banks, she said, DBN offers repayment periods of up to 20 years for infrastructure projects, grace periods of up to three years before repayments begin, and loans of up to N$390 million. Larger projects can also be co-financed with local commercial banks and regional development partners.

"As a development bank, we want development to happen," Nauses said, adding that the bank prioritises projects that create jobs, generate export earnings and reduce the country's reliance on imported goods.

Investing in women

Nauses also highlighted the bank's recently launched 'DBN For Her' financing facility, developed after the bank found that women-owned businesses had historically received only 14% of its funding, compared to 86% for businesses owned by men.

She said the product targets fully women-owned businesses with at least five employees, or start-ups intending to employ five people, and offers loans ranging from N$150 000 to N$10 million. A key feature of the facility is that no interest accrues and no capital repayments are required during the first 12 months.

The 'DBN For Her' product has already approved about N$5.2 million in financing nationwide since its launch in March, with Kavango East accounting for N$2.3 million, the highest approval value of any region.

"It is a commitment from us to empower our women and to make sure that women entrepreneurs have the tools and the support that they need to thrive in their businesses," she said.

Public criticism

However, the bank's investment claims were challenged during the session by prominent Rundu businessman Romanus Kandjimi, who accused DBN of failing to fulfil its developmental mandate by neglecting local entrepreneurs despite reporting more than N$154 million in investments in Kavango East.

Kandjimi questioned the existence of DBN-funded local businesses, saying none of the entrepreneurs present could identify bakeries, construction companies, housing projects or transport businesses in the region financed by the bank. He also pointed to the absence of service stations along the Rundu-Grootfontein, Rundu-Nkurenkuru and Rundu-Divundu routes, arguing that the lack of such investments reflected the bank's failure to stimulate local enterprise.

"Development Bank of Namibia... the development in the name stands for what?" Kandjimi asked. "The bank is supposed to develop local entrepreneurs."