Namibia: The DBN lends €5.6 million to SMEs

Jul 30, 2012

The head of lending at the Development Bank of Namibia (DBN) has said that 70 percent of financing was approved for small and medium enterprises (SMEs) during the second quarter of 2012.

The head of lending at the Development Bank of Namibia (DBN) has said that 70 percent of financing was approved for small and medium-sized enterprises (SMEs) during the second quarter of 2012.

A total amount of N$81.4 million (€8 million) was lent during the second quarter, with N$57 million (€5.6 million) granted to SMEs, Martin Inkumbi, told The Namibian.

"The results of the second quarter show that SMEs continued to receive the bulk of approvals. This is a result of the uptake of DBN's bridging finance product, through which contractors receive financing to carry out contract and tender-based jobs", he said on July 25th.

Around 94 percent of the loans approval went towards financing black economic empowerment initiatives. A total of 488 new and 757 temporary jobs were created.

SMEs' access to credit is expected to improve even further this year with the creation of Namibia’s first SME Bank, which is expected to open its doors in Windhoek by the end of the year, The Namibian Sun reports.

The Ministry of Trade and Industry, Dr Hage Geingob, said in February this year that a Startup capital of N$60 million will be provided by government, while between N$14-18 million will be injected by the Zimbabwean bank Metropolitan.

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