18 Dec 2013 16:20pm
WINDHOEK, 18 DEC (NAMPA) - The Development Bank of Namibia (DBN) intends to shift its focus to larger enterprises as a means of creating mass employment.
The DBNs acting Head of Lending, John Mbango said in a media statement issued on Wednesday that the bank approved loans of N.dollars 398,5 million to large enterprises and SMEs in the last quarter of 2013.
The bank has signalled its intent to shift its focus to larger enterprises as a means to create mass employment. However, allocations to the Small and Medium Enterprises (SMEs) sector are still in range with previous approvals, he noted.
A total of N.dollars 332,4 million (83,4 per cent) was allocated to large enterprises, while N.dollars 66,1 million (16,6 per cent) was approved for the SMEs sector.
The approvals are projected to affect 1 981 jobs, of which 565 are expected to be new, while 569 jobs are temporary and 847 will be retained.
Of the approvals, 91 per cent is allocated to previously disadvantaged Namibians, with 37 per cent being allocated to enterprises owned by women.
Mbango said the sector which received the highest number of allocations was the transport and communications sector (51,3 per cent), followed by manufacturing (18,8 per cent) and tourism (12,7 per cent).
The approval distribution by sector was as follows: a total of N.dollars 1,5 million for business services (four per cent of the approved loan amount); N.dollars 35,1 million for the construction industry (8,8 per cent); N.dollars 4,3 million for education (1,1 per cent); N.dollars 75,1 million for the manufacturing industry (18,8 per cent); N.dollars 50,6 million for the tourism sector (12,7 per cent); N.dollars 204,4 million for the transport and communications industry (51,3 per cent); and N.dollars 27,5 million for the wholesale, retail, trade and repairs industry (6,9 per cent).
The regional spread of approvals was as follows: the biggest portion - N.dollars 75,5 million - was awarded to the Otjozondjupa Region (about 18,9 per cent); Erongo received N.dollars 54,8 million (13,8 per cent); Khomas received N.dollars 29,1 million (7,3 per cent); Kunene received N.dollars 4,2 million (1,1 per cent); Caprivi received N.dollars 2,7 million (0,7 per cent of the total loans); //Karas received N.dollars 4,5 million (1,1 per cent); Omusati received N.dollars 7,3 million (1,8 per cent); and Oshana received N.dollars 4,4 million (1,1 per cent).
The Kunene Region received N.dollars 4,2 million (1,1 per cent); while the two Kavango Regions received a total of N.dollars 1,7 million (0.4 per cent); Ohangwena a total of N.dollars 0,8 million to (0.2 per cent); and Oshikoto a total of N.dollars 0,3 million (0.1 per cent).
Loans of N.dollars 288,2 million were approved for the tertiary industry, while loans worth N.dollars 110,2 million went to the secondary industry.
No loans were approved for the primary industry, according to Mbango.