DBN reflects on 2010 milestones

WINDHOEK – The Development Bank of Namibia counts the opening of its Ongwediva branch, direct lending to Small and Medium Enterprises (SMEs) and strengthening of its Risk Management Department among its achievements for 2010.

DBN CEO, David Nuyoma said an important development for the Bank in 2010 was the introduction of direct lending to SMEs. For the first time, the Bank has ventured into financing SMEs directly.’We had a partnership with First National Bank of Namibia and Bank Windhoek, but this year, we started to slowly introduce direct lending to SMEs. I am pleased to see that we are getting good applications in sectors that have got potential for job creation and sustainable development,’ he said in a statement issued on Wednesday.’We also expanded the Management Information System (MIS), from purely accounting to include the operational matters in terms of managing our full credit process. It gives us the tools at our fingertips to be able to manage and to have an early warning system on our loan book performance, which allows us to take early remedial measures,’ he added.’I am also happy that the government has addressed challenges faced with clients who secured tenders and received working capital through our Bridging Finance facility,’ he added.He further explained that the government has repealed some of the conditions that were part of the Tender Board Act.That, he said, has enabled them to have more buy-in from different Ministries to sign cessions of contract income, securing payment to the DBN.He said not all of the ministries are yet fully cooperative but the DBN has enlisted more Ministries that support the endeavour, which helps to manage the flow of funds.On risk mitigation measures, Nuyoma said DBN has enhanced the capacity of the risk management department in terms of appropriate structuring and follow up.Touching on another milestone in 2010, the CEO said the Bank started to expand its outreach and the key milestone in this respect was the opening of a branch in Ongwediva in September.’We have already started to experience a good flow of applications coming through from that office,’ he observed. – Nampa