Development Bank of Namibia launched

THE Development Bank of Namibia (DBN) was officially launched by President Sam Nujoma in the capital yesterday.

The President said the launch of the bank signalled “an important milestone in our history and is, indeed, a testimony to our collective resolve to enhance the diversification of our economy, to reduce poverty and to accelerate the achievement of economic prosperity for all Namibians”. “We have noted over the years that as our economy expands, the scope and depth of our financial services sector need to be broadened and strengthened.This is particularly significant because a number of investments, especially our infrastructure development s efforts have been almost entirely financed from external sources,” said Nujoma.He said this has resulted in the national foreign debt reaching unacceptable proportions.”The Development Bank of Namibia is, therefore charged to mobilise resources in order to fund our major development initiatives from local resources.”David Nuyoma, Chief Executive Officer of the DBN said the bank would start by exclusively supporting medium to long term endeavours of two kinds – Infrastructure Finance Instruments (IFI) and Financing Facilities for Sectoral Projects (FFSP).IFI will be in the form of a single loan, or as part of a consortium to finance capital projects related to infrastructure development.These would include water infrastructure projects, energy generation and distribution as well as telecommunication infrastructure development, with the recipients of the funds typically being bulk services providers like municipalities and others.As for the FFSP packages, Nuyoma said, “this financing instrument targets private enterprises involved in agro-industry, fishing, manufacturing, mining, the techno-industry, services and tourism”.Sven Thieme, Chairperson of the DBN Board said: “I view the development bank as a tool through which to realise our country’s aspirations as stated in Vision 2030.By financing infrastructure projects like energy development, telecommunication networks, roads, and airports, among others, we provide a link to the future we envision for ourselves as a country.”With yesterday’s launch, Thieme said, “we will put all our efforts in using the Namibian savings in a better way for the development of the country.And that means investing in Namibia and doing it efficiently and safely”.Finance Minister, Saara Kuugongelwa-Amadhila said the Namibian Government had provided budgetary support to help launch the bank.In addition, the existing assets of the Namibia Development Corporation (NDC) and the Development Fund of Namibia (DFN) will be transferred to the bank.”We are keen that donors channel funds through the bank as a means to foster long-term and sustainable economic growth in Namibia,” she said.”We have noted over the years that as our economy expands, the scope and depth of our financial services sector need to be broadened and strengthened.This is particularly significant because a number of investments, especially our infrastructure development s efforts have been almost entirely financed from external sources,” said Nujoma.He said this has resulted in the national foreign debt reaching unacceptable proportions.”The Development Bank of Namibia is, therefore charged to mobilise resources in order to fund our major development initiatives from local resources.”David Nuyoma, Chief Executive Officer of the DBN said the bank would start by exclusively supporting medium to long term endeavours of two kinds – Infrastructure Finance Instruments (IFI) and Financing Facilities for Sectoral Projects (FFSP).IFI will be in the form of a single loan, or as part of a consortium to finance capital projects related to infrastructure development.These would include water infrastructure projects, energy generation and distribution as well as telecommunication infrastructure development, with the recipients of the funds typically being bulk services providers like municipalities and others.As for the FFSP packages, Nuyoma said, “this financing instrument targets private enterprises involved in agro-industry, fishing, manufacturing, mining, the techno-industry, services and tourism”.Sven Thieme, Chairperson of the DBN Board said: “I view the development bank as a tool through which to realise our country’s aspirations as stated in Vision 2030.By financing infrastructure projects like energy development, telecommunication networks, roads, and airports, among others, we provide a link to the future we envision for ourselves as a country.”With yesterday’s launch, Thieme said, “we will put all our efforts in using the Namibian savings in a better way for the development of the country.And that means investing in Namibia and doing it efficiently and safely”.Finance Minister, Saara Kuugongelwa-Amadhila said the Namibian Government had provided budgetary support to help launch the bank.In addition, the existing assets of the Namibia Development Corporation (NDC) and the Development Fund of Namibia (DFN) will be transferred to the bank.”We are keen that donors channel funds through the bank as a means to foster long-term and sustainable economic growth in Namibia,” she said.