Martin Endjala
The Development Bank of Namibia is leveraging development partnerships with other development finance institutions such as the African Development Bank (AfDB), which is a critical enabler of DBN’s strategy.
This follows a meeting that took place in Windhoek between the two banks last week. The meeting was part of the consultation mission to Namibia, by the AfDB Executive Director of Southern Africa Group II Constituency, Dr João Ngimbi to Namibia.
The DBN’s Chief Executive Officer, John Steytler, said that the bank’s strategy for the next five years has been submitted to the Minister of Finance and Public Enterprises for approval.
“The strategy is aligned with Vision 2030 and the Harambee Prosperity Plan II, and aims to position DBN as the financial partner of choice for innovative development solutions in Namibia.
Leveraging development partnerships with other development finance institutions such as the AfDB, are a critical enabler of DBNs strategy,” said Steytler.
In 2016, DBN and AfDB signed a loan agreement for a 17-year line of credit for N$4.5 billion, making the AfDB DBN’s biggest funder.
The proceeds of the line of credit were used for on-lending to projects in the infrastructure, manufacturing, logistics and tourism sectors.
The CEO noted that these funds have been instrumental for DBN in pioneering renewable energy finance in Namibia. In addition, DBN funded 16 land delivery and housing projects to alleviate the lack of housing in the country.
Besides providing much-needed loans to viable projects, the credit line has strengthened DBN’s in-house capacity for environmental monitoring of projects in line with international best practices.
The engagement between the two development finance institutions also aligned DBN to best governance practices, which helped unlock funding from other development partners such as the KfW from Germany.
Loans funded with the line of credit created an estimated 1,800 jobs, of which over 800 jobs were created in the land servicing and housing sector.
Both the DBN and the AfDB reaffirmed their commitments to continue building on their partnership to drive Namibia’s sustainable socio-economic development.
