11 Feb 2014 15:40pm
WINDHOEK, 11 FEB (NAMPA) - The Development Bank of Namibia (DBN) has set itself a loan-book target of N.dollars 2 billion for 2014.
The DBN's Chief Executive Officer, Martin Inkumbi said this in the capital on Tuesday while announcing the bank's four-year strategic plan and loan approval for the fourth-quarter of 2013.
Inkumbi noted that last year, the bank met its loan-book target of N.dollars 1,75 billion, with a growth rate of 24,8 per cent.
The bank similarly approved loans totalling N.dollars 840,1 million, and recorded impairments of 6.6 per cent against a target of 5 per cent.
Inkumbi said over the next four years (2014 to 2018), the bank will focus on three areas - manufacturing, tourism, and transport and logistics.
Lending to the value of N.dollars 750 million is targeted for the manufacturing sector; N.dollars 450 million for tourism; and N.dollars 330 million for transport and logistics.
Infrastructural development is also a key priority, especially in land development. Here, the servicing of land and energy distribution will be highlighted.
The bank would not finance agriculture as this was the ambit of the Agricultural Bank of Namibia (AgriBank), but the bank would seek opportunities to finance secondary industries related to agriculture as a source of employment, as well as a key underpinning of food security, the official explained.
Inkumbi said the bank will focus primarily on women and youth entrepreneurs as key drivers of Namibia's future economy.
Four main projects which embody the bank's strategy in the coming four years - Namibia Exclusive Safaris, Carbo Namibia, Beefcor Meat Suppliers and the Oshakati Town Council will be targetted.
Namibia Exclusive Safaris (NES) received financing to construct two lodges in the Omatandeka and Sorris Sorris Conservancies, in partnership with the conservancies through a joint-venture agreement.
When the 10-year contract between NES and the conservancies ends, the lodges will revert to the conservancies.
The project will create 120 direct jobs, of which at least 40 will be for members of the conservancies.
Carbo Namibia, an existing charcoal-processing and manufacturing plant in Grootfontein in the Otjozondjupa Region, received financing to expand its processing capacity from 8 000 metric tons to 15 000 metric tons annually.
Its export markets include the United Kingdom, Western Europe and the Southern African Development Community (SADC) region. The expansion of this business is expected to create 150 new jobs, and retain 104 jobs.
The DBN CEO further noted that financing was approved for the expansion of Beefcor Meat Suppliers for a meat-processing plant in Okahandja in the Otjozondjupa Region.
This abattoir will be constructed as an A-class abattoir to allow the business to export meat to markets such as the Americas, Asia and Europe.
About 125 new jobs are to be created.
The bank has also approved financing for the Oshakati Town Council to install bulk infrastructure such as roads, electricity and water and sewer reticulation in a new area of Oshakati (Extension16) to create 270 new erven, mainly for residential, business and recreational purposes.
At least 150 jobs are expected to be created over a period of 15 months.