Forty new loans approved
LOANS to the value of N$1 436 million has been approved since the inception of the Development Bank of Namibia (DBN) with the potential to create 20 311 job opportunities while the loan book reflected a balance of N$861 million on 31 October.
In the third quarter of 2010 the DBN appro- ved 40 loans to the value of N$60,17 million that will help create 410 permanent and 298 temporary job opportunities while 153 jobs are retained.
“The sectoral spread of the loans by volume reflects a strong bias for the manufacturing and services sectors. The bulk of the funding went towards the manufacturing sector with 47%, followed by the real estate and business sector with 36%, the construction sector with 10%, the hotel and restaurant sector with 4% and the wholesale and retail sector with 2%,” Mr Gottlieb Hinda, chief operations officer of the DBN said last week at the announcement of new projects that was approved by the bank.
More than 80% of these loans have effective black economic empowerment participation. The projects that received loans are from all 13 regions but the bulk, 41.2%, was awarded to companies in the Khomas region.
“The Bank sets targets to ensure it finances projects in all 13 regions and across key sectors of the economy. By tracking the extent to which we meet these targets, we track our responsiveness to development needs across the country.”
Since 2009 the bank also provides funding for the implementation of innovative business concepts. During the third quarter this funding was awarded to Leonardville Silk Worm Productions who received N$55 000 to use in the production of silk duvets using the cocoon of the Gonometa Postiga or “brandwurm”.
“Leonardville Silk Production’s focus is to provide people with a product that has value to them while the specific activity bears positive results for the environment. The ‘brandwurm’ is regarded a pest in the area and the harvesting thereof will clean up the environment as well as provide income to local women in particular, who collect and sell the cocoons to Leonardville Silk Productions,” Mr Hinda said.
“Four workers will be employed, while collectors will be paid for the collecting of the ‘brandwurm’. Denise Kotze, sole owner of the company will thus contribute to job creation in an area plagued by unemployment and shortage of business activity.”
On the repayment of loans he said that the bank’s incidences of default are made up out of variables such as projects based on tender contracts where defaults are usually high due to misaligned payment structures that negatively impact the general performance of the Development Bank’s loan book.
“Another common measure to curb defaults, especially through the Bridging Finance Facility, involves the signing of cessions of contract income with organisations that require the tendered services.
“Through this pro- cess, the DBN gets a share of the payment before the contractor is paid,” Mr Hinda said.
In the third quarter of 2010 the DBN appro- ved 40 loans to the value of N$60,17 million that will help create 410 permanent and 298 temporary job opportunities while 153 jobs are retained.
“The sectoral spread of the loans by volume reflects a strong bias for the manufacturing and services sectors. The bulk of the funding went towards the manufacturing sector with 47%, followed by the real estate and business sector with 36%, the construction sector with 10%, the hotel and restaurant sector with 4% and the wholesale and retail sector with 2%,” Mr Gottlieb Hinda, chief operations officer of the DBN said last week at the announcement of new projects that was approved by the bank.
More than 80% of these loans have effective black economic empowerment participation. The projects that received loans are from all 13 regions but the bulk, 41.2%, was awarded to companies in the Khomas region.
“The Bank sets targets to ensure it finances projects in all 13 regions and across key sectors of the economy. By tracking the extent to which we meet these targets, we track our responsiveness to development needs across the country.”
Since 2009 the bank also provides funding for the implementation of innovative business concepts. During the third quarter this funding was awarded to Leonardville Silk Worm Productions who received N$55 000 to use in the production of silk duvets using the cocoon of the Gonometa Postiga or “brandwurm”.
“Leonardville Silk Production’s focus is to provide people with a product that has value to them while the specific activity bears positive results for the environment. The ‘brandwurm’ is regarded a pest in the area and the harvesting thereof will clean up the environment as well as provide income to local women in particular, who collect and sell the cocoons to Leonardville Silk Productions,” Mr Hinda said.
“Four workers will be employed, while collectors will be paid for the collecting of the ‘brandwurm’. Denise Kotze, sole owner of the company will thus contribute to job creation in an area plagued by unemployment and shortage of business activity.”
On the repayment of loans he said that the bank’s incidences of default are made up out of variables such as projects based on tender contracts where defaults are usually high due to misaligned payment structures that negatively impact the general performance of the Development Bank’s loan book.
“Another common measure to curb defaults, especially through the Bridging Finance Facility, involves the signing of cessions of contract income with organisations that require the tendered services.
“Through this pro- cess, the DBN gets a share of the payment before the contractor is paid,” Mr Hinda said.
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