Geingob urges banks to provide capital

Prime Minister, Hage Geingob says Namibia needs new sources of growth and such avenues would rely on human capital, particularly knowledge, to add value to the country’s resources.
Banks such as the Development Bank of Namibia (DBN) should seek means to provide capital on a more inclusive basis, not just for capital owners, he asserts.
“The critical role of institutions that organisations such as DBN play in the economic development of Namibia and poverty alleviation is very important. Although Namibia is classified as a middle-income country, wealth is held in the hands of a small number of people and entities”.
Geingob said this at DBN’s 10th Anniversary celebration, last week. According to him, the middle-income classification rules restrain foreign aid and loans, not to mention that poverty still affects many Namibians.
Therefore, organisations, such as DBN play an important role in transforming local economy, by providing finance to emerging entrepreneurs.
Since its inception, DBN has approved 1 446 facilities for 1 149 entities. Of the approvals, 1 228 have been for small and medium enterprises (SMEs). The approvals have had an estimated impact on 51 493 jobs and a value of N$4.046b.
Board chairperson, Elize Angula on DBN’s achievements, acknowledged her fellow members, management and staff for their efforts and dedication. She said the bank is viewed by peer development finance institutions (DFIs) as one of the best in Sadc region.
“The bank is an innovator in the field of provision of finance on an inclusive basis, pointing to the development of contract-based finance, which provides access to finance by enabling entrepreneurs to make loans using revenue streams from projects as repayment of loans,” she said.
She also underlined DBN’s partnership with Nampost, in terms of which fund is provided to enable the acquisition of technology, which has since allowed Nampost Savings Bank to increase its clientelle base from 160 000, when the loan was made, to 450 000 by the end of 2012.
Angula reiterated the bank’s emphasis on ‘putting Namibia first’ and the bank’s commitment to the development and prosperity of local economy in years to come.