01 Jun 2014 12:50pm
WINDHOEK, 01 JUN (NAMPA) The Development Bank of Namibia (DBN) approved loans to the value N.dollars 266.3 million in the first quarter of 2014.
DBNs Head of Lending, John Mbango in the banks latest newsletter issued on Friday noted that the approvals are projected to affect 2 448 jobs of which 780 are expected to be new, while a total of 1 309 are temporary and 359 retained.
Of the approvals, 95 per cent was allocated to previously disadvantaged Namibians.
Allocations to enterprises owned by women amounted to 27 per cent and allocations to youth enterprise made up 35 per cent of the approvals, he stated.
Mbango said the sector that received the highest allocations was the construction sector (56.3 per cent), followed by manufacturing (25.2 per cent) and manufacturing, and wholesale, retail trade and repairs (8.6 per cent for each). Loans of N.dollars 216.9 million were approved in the secondary industry, while loans of N.dollars 49.4 million were approved in the tertiary industry.
Speaking about the large amount approved for construction, John Mbango explained that construction is a proven tool for delivering development.
Temporary jobs create incomes with circulate earnings into families and back into the economy, allowing for further enterprise growth, job creation and improvement of social indicators. Once construction was completed, the infrastructure would be used immediately and that it would continue to be an integral part of the economy for decades to come, if not longer, he added.
The approval distribution by sector was a follows: business services received N.dollars 22.9 million; construction received N.dollars 149.9 million; financial intermediation received N.dollars 500 000; manufacturing received N.dollars 67 million; and transport and communication received N.dollars 3 million; while wholesale, retail trade and repairs received N.dollars 23 million.
The Khomas Region received the highest spread of regional approvals totalling N.dollars 97.2 million, followed by the Omusati Region with N.dollars 88 million and the Erongo Region with N.dollars 26 million.