DBN approves 128 loans worth N$912.7m

Staff Writer

The Development Bank of Namibia (DBN) approved N$912.7 million in funding during the 2024/25 financial year, a marginal increase of 0.7% from the N$906.1 million approved the year before.

Private sector approvals reached N$562.7 million, a slight drop from N$564.7 million in 2023/24. Public sector approvals rose to N$350.0 million, up from N$341.3 million in the previous year.

DBN approved 128 loans during the year, fewer than the 141 loans approved in 2023/24. Start-up financing remained limited. The bank approved 15 start-up loans worth N$17.1 million in 2024/25, compared with 16 start-up loans totalling N$233.1 million the year before.

Infrastructure development took the largest share of approvals. Total infrastructure funding reached N$646.6 million in 2024/25. 

Social infrastructure received N$399 million, accounting for 61.7% of infrastructure approvals. Utility infrastructure followed with N$209 million, or 32.3%.

Land servicing received N$38.6 million. No approvals were recorded for commercial infrastructure.

This marks a shift from 2023/24, when infrastructure approvals stood at N$319.1 million, driven largely by N$248.9 million for utility-scale solar power projects.

During the year, DBN approved a N$350 million loan as part of a N$1.5 billion co-financing arrangement with the Development Bank of Southern Africa. 

The funding will support the construction of 8,250 housing units between 2025 and 2029 for low- and middle-income households. 

The project includes 1 000 housing units for informal settlement upgrading and is expected to create more than 100 permanent jobs and about 5 400 temporary jobs.

DBN also approved funding to partly service, build and sell 109 houses in Rundu’s Extension 35, Sauyemwa South, on a plot-and-plan basis. Additional funding was approved to partly procure land and develop 50 sectional title duplex units in Rocky Crest, Extension 4, with selling prices ranging from N$720,000 to N$1.1 million.

Sectoral approvals show a strong focus on housing and construction. The housing sector received N$399.0 million, making up 43.7% of total approvals, up from N$34.8 million in 2023/24. 

Construction sector approvals rose to N$292.9 million, or 32.1% of total approvals, from N$89.2 million the year before.

Approvals for transport and logistics fell sharply to N$4.6 million, down from N$271 million in 2023/24. Electricity sector approvals dropped to N$5.8 million, compared with N$248.9 million in the previous year when funding focused on renewable energy projects. 

Manufacturing approvals increased slightly to N$73.2 million from N$66.9 million. No loan approvals were recorded for fishing, telecommunications, water or mining during the year.

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