Oshakati housing initiative gets DBN support

The Oshakati Town Council is expected to soon allocate 270 new erven to its residents for housing, thanks to a N$50 million backing from the Development Bank of Namibia (DBN). The project, approved under the DBN’s special local authorities funding product, is one of the projects totalling N$158.8 approved by the bank in the last three months of 2013. According to DBN CEO Martin Inkumbi, the assistance to the Oshakati Town Council is meant for the servicing of residential land, and should create up to 150 jobs over a 12-month period. He was speaking during a press conference in Windhoek, updating the media on the bank’s activities throughout the fourth quarter. Relatively unused to date, Inkumi said he expected to see the product utilised more in the immediate future, with the Ongwediva Town Council being the second currently making use of it – while the DBN is in talks with two more local authorities about possible funding. Another project that benefited from DBN assistance at the end of last year is the construction of two lodges in the Omatandeka and Sorris Sorris Conservancies by Namibia Exclusive Safaries (NES) in partnership with local conservancies. The joint venture would see the lodges revert back to conservancies at the end of a ten-year contract between the local communities and the NES. “The project will create 120 direct jobs, of which at least 40 will be to members of the conservancies,” a DBN press statement states. The fourth quarter loan figure, the DBN boss said, allowed the bank to meet its loan book target of N$1.75 billion for 2013. That target is expected to grow to N$2 billion this year. The largest chunk of the DBN’s assistance between October and December was shared between the Khomas (38.8%), Kavango (11.9%), Erongo (8.4%), Hardap (6.3%) and Otjozondjupa (4.4%) regions, DBN Head of Lending John Mbango said, citing a wealth of activity currently experienced in those regions. Loans of approximately N$109.2 million were approved in the secondary industry, while a further N$47.9 million was spent on funding activities in the tertiary sector. Only N$1.7 million went to the primary industry, with the bank saying that sector is traditionally better supported by its sister organisation, the Agricultural Bank of Namibia (Agribank). Inkumbi stated that, at present, the bank’s lending is 75% focused on larger development projects, with a further 25% scope for small and medium enterprises (SMEs). With the entrance of the SME Bank into the market recently though, he said the DBN was looking at further reducing its SME component to around 20%. WINDHOEK DENVER ISAACS