WINDHOEK: The Development Bank of Namibia (DBN) has approved N.dollars 242.9 million in loans in the third quarter of 2012, with a potential impact on 2 112 jobs.
The third quarter of 2012 runs from July to the end of September.
DBN Head of Lending, Martin Inkumbi announced on Wednesday at a media briefing held in the capital that of these loans, 77.4 per cent was allocated to corporate projects and 22.6 per cent to small and medium enterprise (SME) projects.
Corporate loan approvals amounted to N.dollars 188 million, and loan approvals to SMEs amounted to N.dollars 54.9 million. No approvals were made to the public sector during the third quarter.
According to Inkumbi, the bank performed well in the third quarter, compared to the first and second quarters, during which loans totalling N.dollars 103 million and N.dollars 81.4 million respectively were approved.
In the third quarter, the bulk of the finances went to corporate projects, as opposed to the first two quarters of 2012, during which the SME sector dominated loan approvals.
The bulk of approvals were to the business service sector, while in the first two quarters, the bulk went to SMEs in construction.
The approval distribution by sector was as follows: Business services – N.dollars 148.8 million; Transport and Communication – N.dollars 25.9 million; Construction – N.dollars 19.5 million; Wholesale and Retail – N.dollars 12.6 million; Manufacturing – N.dollars 11.5 million; Hotels and Restaurants – N.dollars 11.4 million; Health – N.dollars 10.2 million; and Financial Intermediation – N.dollars 3.0 million.
The Erongo Region received the lion’s share of approvals, totalling N.dollars 148.5 million, followed by the Oshana Region with N.dollars 20.3 million and the Caprivi Region with N.dollars 16 million.
The approvals are projected to affect 2 112 jobs, of which 346 will be new, 840 temporary and 926 existing jobs.
The approved loans have a 99 per cent impact on Projects for Disadvantaged Namibians (PDN), with 22 per cent of the enterprises owned by women.
During the third quarter of 2012, loans amounting to N.dollars 31 million were approved in the secondary industry and N.dollars 212 million in the tertiary industry, while no loans were approved in the primary industry.