The Development Bank of Namibia (DBN) has received a positive evaluation from its peers, indicating strong performance and commitment to responsible development practices.
This is as the Association of African Development Finance Institutions (AADFI) awarded the bank with a 86% compliance index (BB rating) for 2024.
In a statement yesterday, DBN said this marks a significant improvement from the 82% score in the previous review. The bank says this showcases its steadfast commitment to governance excellence, financial stability, and impactful development.
The review focuses on how well a bank follows good practices.
The AADFI is an umbrella organisation for development finance institutions in Africa, established under the African Development Bank.
It promotes cooperation to advance sustainable development and economic integration across the African continent.
The AADFI conducts annual peer reviews, bringing together leading development banks from across the continent.
If an institution scores 80% or higher, they are considered to be in full compliance with its rigorous standards.
DBN believes the rating reaffirms its dedication to environmental sustainability and the successful completion of projects that drive Namibia’s growth and prosperity.
DBN chief marketing and corporate affairs officer Jerome Mutumba says the increase in compliance, compared to the previous year, is a testament to the bank’s robust governance framework and dedication to sustainable development.
“It reflects our ability to uphold international standards of governance and financial integrity, instilling trust and confidence among our stakeholders,” he says.
Mutumba says this rating underscores the bank’s commitment to continuous improvement, with a focus on enhancing transparency in risk management and advancing policies that promote gender equity and poverty alleviation.
Key highlights of rating:
- Board composition and equity levels: The bank has maintained satisfactory board governance and strong equity positions.
- Core business financing: DBN’s financing practices align well with international standards.
- Environmental policies: The bank’s approach to environmental sustainability was assessed as effective and satisfactory.
- Project completion: The rating acknowledges DBN’s efficiency and effectiveness, as well as its strong record of project completion.
- Opportunities for improvement: A published integrated risk management policy and the adoption of gender promotion and poverty alleviation policies were recommended for further enhancement of DBN’s operations.
“DBN’s participation in these reviews underscores its dedication to benchmarking its practices against the highest standards in the development finance institution sector, cementing its position as a world-class institution,” the DBN statement read.
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