News Column

Government Funding Help DBN Assets to Reach N$2,3 Billion

June 13, 2014

Chamwe Kaira

THE Development Bank of Namibia (DBN) will from this year focus on funding the manufacturing, tourism and transport and logistics industries. This was said this week by chairperson Elize Angula in the 2013 Annual Report.

"This special focus and the expected outputs will be closely managed in accordance with the business plan," she said.

CEO Martin Inkumbi said the bank's lending activities created 7 871 jobs in 2013.

He said most of the projects funded were private enterprises. The majority of approvals were made in the tertiary sector (64,7%) followed by the secondary sector (35,1%).

The sectors of transport and manufacturing received 33,8% and 13,1% respectively, while the tourism sector received 7,2% of the loan approvals during the period.

The bank's net interest income grew by 25% to N$ 165,3 million for the period, in line with the 24% growth in the bank's loan book.

"As the bank adopts the approach that enterprise is key to sustainable long term development, this can be seen as a heartening sign for national prosperity.

Operating expenses to net income stood at 36%, the same level as the previous year," said Inkumbi.

The bank's total assets grew by 17% to N$ 2,3 billion, on the back of further capitalisation by the government and profits made during the year.

Loans and advances increased by 24% to N$1,72 billion during the period, while equity investments grew by 84% to N$ 130,4 million up from N$ 70,7 million due to a combination of both additional equity investments made and the upward fair value adjustment of the bank's equity investment in Ohorongo Cement.

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Source: AllAfrica

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