Allexer Namundjebo
Landless People’s Movement (LPM) youth leader Duminga Ndala says youth-owned businesses must continue to honour their loan obligations where possible.
This comes as the Development Bank of Namibia (DBN) announced it had written off about N$579 million in non-performing loans during the 2024/25 financial year as part of a balance sheet clean-up.
Responding to questions from the Windhoek Observer on Thursday, Ndala said the loan write-off reflects the severe economic pressures facing borrowers across the economy but does not justify a blanket approach to debt relief for young people.
“Young people who owe the bank should continue to honour their loan obligations where possible, as this is essential to protecting the financial sustainability of the institution and avoiding the development of a culture in which repayment is no longer taken seriously,” Ndala said.
She said support for youth borrowers should be balanced and based on need.
Ndala added that the bank must also ensure young people are not permanently locked out of economic activity because of circumstances beyond their control.
“Youth borrowers should therefore be considered for targeted and conditional debt relief, particularly in cases where there is clear and demonstrable evidence that their inability to repay is the result of genuine economic challenges such as unemployment, adverse market conditions, or structural barriers commonly faced by young entrepreneurs,” she said.
Ndala said such an approach protects the financial system while recognising the vulnerabilities young people face and supporting long-term youth’s economic participation.
DBN said the loans were removed after long-standing defaults and prolonged non-payment made recovery unlikely.
According to DBN’s annual results, the write-off reduced its loan book from about N$6.2 billion to N$5.8 billion.
The bank said the move formed part of a broader effort to stabilise operations and refocus on priority areas such as support for small and medium enterprises and climate financing.
The president of the Association for Localised Interest (ASOLI), Josef Kauandenge, this week called on DBN management to explain the circumstances behind the decision.
Kauandenge described the development as disheartening and unacceptable, arguing that well-connected individuals are often relieved of repayment obligations while poorer Namibians struggle to access funding.
“Clearly something fishy is happening at the highest level of government,” he said, adding that reports of public funds disappearing through failed investments have become more frequent, with little recovery.
He said the write-off reflects a wider pattern in which large sums of public money are allegedly lost by individuals linked to power structures.
Kauandenge has demanded that DBN disclose the names of loan defaulters, explain the processes followed before the write-offs, and clarify why recovery steps were not taken.
Former cabinet minister Calle Schlettwein also weighed in, saying the decision involves the loss of public funds and requires full transparency.
“In as much as it is good to clean one’s balance sheet, we should not ignore the fact that it is taxpayers’ money, public funds, that are lost,” Schlettwein said.
He said the public deserves to know which businesses defaulted and who owns them, especially if they are no longer being held accountable.
“One would therefore appreciate a full disclosure of the defaulting businesses and their owners who are now off the hook,” he said.
Schlettwein said institutions that manage public funds carry stronger disclosure duties than private entities.
“To be a trustworthy custodian of public funds brings about a set of different obligations of disclosure than those of the private sector,” he said.
“I hope these obligations were indeed satisfied,” he added.
DBN is a state-owned development finance institution mandated to support economic growth by funding businesses and projects using public resources.
At the time of publication, DBN had not responded to questions sent by the Windhoek Observer.
