The Development Bank of Namibia’s (DBN) latest financial disclosures show that the company’s highest-ranking officials currently hold over N$14 million in staff home loans.
According to the bank’s annual report for the year ended 31 March 2025, the key management personnel – a group comprising the board of directors, the senior executive team, and the chief executive – are the beneficiaries of these housing credit facilities.
While the figure remains high, it represents a notable decrease from the previous year.
In 2024, the management team owed a combined N$15.2 million, suggesting that the bosses have paid back more than N$1.1 million over the last 12 months.
“The gross amount for staff home loans to key management is N$14.1 million (2024: N$15.2 million). No other transactions with key management personnel have been entered into during the current year,” reads the report.
Globally staff home loans are a common golden handcuff strategy to attract and retain executives.
Top management received a total salary package of N$23.5 million. This includes salaries, pension benefits and other short term benefits.
Meanwhile, the total loans given to the bank’s staff to buy homes was N$100 million.
“The bank operates a home ownership scheme, in which mortgage bonds are provided to the bank employees at reduced interest rates. Loans are provided to a maximum of four times the pensionable salary, including all costs,” reads the report.
The loans are off-market, as they are given at below market-related rates.
“The total below market value was N$21 million as at 31 March 2025, this is yet to be amortised to profit and loss,” reads the report.
This means across all staff loans, the total value of this interest discount was N$21 million by March 2025.
This N$21 million represents the money the bank gave up to help its employees own homes, a cost that will be recorded in the company’s profit and loss statements over the coming years.
The bank says it manages credit risk through direct payroll deductions.
The only shareholder of the bank, the government, received N$6 million in dividends.
The DBN had 124 permanent basis employees as at 31 March 2025.
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