DBN boosts SMEs with N$57 million in loans

THE Development Bank of Namibia (DBN) has boosted business by N$81,4 million in loans during the second quarter, bringing the bank’s total loans and equity investments since 2004 to about N$1,5 billion.

Martin Inkumbi, DBN head of lending, yesterday said 70 percent of financing, about N$57 million, during the second quarter was approved for small and medium enterprises (SMEs). Corporate business approvals amounted to 24,9 percent of total approvals, while guarantees totalled 5,1 percent. A total of 61 entities received financing and 77 facilities were approved during the quarter.Erongo region receiving the bulk of approvals, overtaking Khomas which led approvals in the first quarter. These regions were followed by the Ohangwena region, which had the lowest level of approvals in the first quarter. In the second quarter, as in the first, the bulk of financing went to the construction industry, which received loan approvals amounting to N$26,4 million, followed by wholesale, retail trade, and repairs, which received loan approvals amounting to N$21,4 million. The transport sector received loan approvals valued at N$10,6 million.’The results of the second quarter show that SMEs continued to receive the bulk of approvals. This is a result of the uptake of DBN’s bridging finance product, through which contractors receive financing to carry out contract and tender-based jobs. ‘Bridging finance approvals amounted to N$46,6 million to implement tenders valued at N$261,5 million,’ Inkumbi said.A total of 488 new and 757 temporary jobs were created, while jobs retained were 309. Of the loan approvals, 94 percent went towards financing black economic empowerment (BEE) initiatives and 19 percent of that amount to female BEE ownership.At the end of the second quarter, the DBN had a total of 487 clients on its loan book, of which 76 are large corporate businesses and 411 are SMEs.

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