DBN Disburses N$750 Million to SMEs Amid Steep Drop in Loan Approvals - ISSUE #38☕

Good morning. Welcome to your Wednesday edition. Here is what you need to know to power through the rest of the week:

Featured Updates:

• DBN’s SME Struggle: DBN gave N$750 million to SMEs from 2020-2024, but loan approvals crashed 66% to N$96 million last year. Rising bad loans (36% NPL) signal trouble.

• N$561 Million for agriculture: Namibia’s investing N$561 million in 2025/26 to boost agri-infrastructure, revive Green Schemes, and cut food imports by 80%.

• Anirep’s Wind Power Bet: Anirep snagged a 45% stake in the 50 MW Cerim Lüderitz wind project for N$60 million, set to power up by July 2025.

• Economy to Grow 3.8%: Namibia’s GDP is forecast at 3.8% in 2025, 4% in 2026, led by farming, uranium, and construction.

• MTC Pushes Connectivity: PM Elijah Ngurare urged MTC to protect data sovereignty and hit 100% coverage. MTC’s 30 years came with 5G trials and NSX listing.

• Meta’s AI App Drops: Meta’s new AI app rivals ChatGPT, using your social data for tailored replies. Its Discover feed sparks sharing but raises privacy flags.

• Oprah’s Wisdom: “The more you praise and celebrate your life, the more there is in life to celebrate.” Focus on gratitude this Wednesday to find more to love!

Enjoy the read and have a blessed and productive rest of the week! ☕

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BUSINESS & ECONOMY

DBN Disburses N$750 Million to SMEs Amid Steep Drop in Loan Approvals

The Development Bank of Namibia (DBN) has channeled nearly N$750 million to small and medium-sized enterprises (SMEs) from 2020 to 2024, but loan approvals have plummeted by 66% over the same period, raising concerns about access to finance for small businesses.

Sharp Decline in SME Loan Approvals
DBN’s financial data, reviewed by Foster Digital Education, reveal a consistent drop in SME loan approvals: from N$279 million in 2020 to N$156 million in 2021, N$115 million in 2022, N$104 million in 2023, and just N$96 million in 2024. The steepest fall—44%—occurred between 2020 and 2021, with the downward trend continuing at a slower pace.

Financial analyst Fimanekeni Mbodo expressed concern: “While DBN has disbursed N$750 million to SMEs over five years, the 66% decline in approvals is alarming. It raises critical questions about SME financing and whether this trend can be reversed.”

Financial Struggles and Recovery
DBN’s financial health has faced challenges, with net profit falling from N$229 million in 2020 to a N$270 million loss in 2023. A recovery to a N$62 million profit in 2024 was driven by the sale of part of DBN’s equity in Ohorongo Cement, a government grant from the Special Development Fund, and bad debt recoveries. However, total assets shrank from N$9.5 billion in 2020 to N$7.3 billion in 2024, partly due to accelerated repayments from the National Energy Fund, which accounts for nearly 40% of DBN’s portfolio.

Rising Costs and Credit Risks
Operational expenses surged from N$132 million in 2022 to N$181 million in 2024, with employee costs making up 66% of the total. Professional service costs, including audit, consultancy, and legal fees, spiked by 58% in 2024. Meanwhile, DBN’s non-performing loans (NPL) ratio soared from 13.5% in 2020 to 36.0% in 2024, and the impairment ratio climbed from 9.5% to 26.4%, signaling heightened credit risk.

The Bottom Line
DBN’s N$750 million in SME disbursements underscores its role in supporting small businesses, but the 66% drop in loan approvals, coupled with rising costs and credit risks, highlights significant challenges. Reversing this trend will be critical for fostering SME growth and Namibia’s economic development.

Source: The Brief

Namibia Commits N$561 Million to Agri-Infrastructure in 2025/26

Namibia’s government will invest N$561 million in agri-infrastructure for the 2025/2026 financial year to bolster food security and reduce reliance on food imports by 80%, President Netumbo Nandi-Ndaitwah announced during her inaugural State of the Nation Address (SONA) on Thursday.

Strengthening Food Security and Agriculture
The funding will support climate-resilient and competitive agriculture, prioritizing infrastructure development and the full operationalization of Namibia’s 11 Green Schemes, which have faced challenges from drought and administrative inefficiencies. Agro-processing initiatives will also be intensified to enhance value addition. “Agriculture is our top priority and a critical economic enabler,” Nandi-Ndaitwah emphasized, highlighting its role in reducing import dependency.

Targeted Support for Farmers
The government will roll out a Cattle Breed Improvement and Herd Restocking Scheme aimed at emerging, resettled, and communal farmers. The program, which includes crossbreeding and artificial insemination, seeks to boost livestock productivity amid a 49.1% drop in cattle sales in January 2025 compared to the previous year. Nandi-Ndaitwah acknowledged the high cost of agricultural inputs as a barrier to food security, noting ongoing farmer subsidization efforts, including N$62 million allocated last year for drought-affected regions.

Agriculture’s Economic Significance
Contributing approximately 23% to direct employment, agriculture remains a cornerstone of Namibia’s economy. The government’s strategic investments aim to address sector challenges, enhance resilience, and drive sustainable growth.

The Bottom Line
Namibia’s N$561 million allocation to agri-infrastructure signals a robust commitment to transforming agriculture, reducing food imports, and empowering farmers. By prioritizing infrastructure, livestock improvement, and Green Scheme revitalization, the government aims to secure a resilient and food-secure future.

SOURCE: The Brief

Anirep Secures 45% Stake in Cerim Lüderitz Wind Power Project for N$60 Million

Alpha Namibia Industries Renewable Power Limited (Anirep) has finalized a conditional binding offer to acquire a 45% equity stake in Cerim Lüderitz Energy for N$60 million, marking a significant step in expanding its renewable energy footprint in Namibia.

Strategic Acquisition to Boost Wind Energy
Anirep will acquire 30% from Allied Worldwide Trading Limited and 15% from Riminii Investment, pending approvals from the Namibia Power Corporation (NamPower) and the Electricity Control Board, as well as satisfactory due diligence and definitive agreements. Anirep Managing Director Iyaloo Nangolo highlighted the deal’s potential to drive growth in the wind energy sector while supporting existing solar projects. “With the Cerim project, Anirep’s renewable energy portfolio will surpass 90 MWp by the project’s commercial operation date, addressing Namibia’s energy challenges and advancing national renewable energy goals,” Nangolo stated.

Project Details and National Alignment
Cerim Lüderitz Energy is developing a 50 MW wind power plant 16 km south of Lüderitz, spanning 743 hectares and including a 40 km, 132 kV transmission line to connect to the Namib substation. The project, backed by a 25-year power purchase agreement (PPA) with NamPower, an environmental clearance certificate, and a transmission connection agreement, is set to begin operations by July 2025, following a 27-month construction timeline from the PPA signing. The initiative aligns with Namibia’s Integrated Resource Plan and Fifth National Development Plan, targeting 755 MW of installed capacity and 70% renewable energy sourcing by 2030.

Financial and Market Context
Classified as a category three transaction under Namibia Securities Exchange (NSX) listing requirements due to its value being less than 10% of Anirep’s market capitalization, the acquisition is supported by Anirep’s N$5-billion green bond listed in 2024. This capital strengthens Anirep’s ability to fund the Cerim project and other renewable energy ventures, cementing its role as a leading independent power producer in the region.

The Bottom Line
Anirep’s acquisition of a 45% stake in the Cerim Lüderitz wind power project positions it to play a pivotal role in Namibia’s renewable energy ambitions. By leveraging strategic partnerships and financial resources, Anirep is driving sustainable energy solutions to meet national targets and address regional energy demands.

SOURCE: The Namibian

Namibia’s Economy Set for Steady Growth: 3.8% in 2025, 4% in 2026

Namibia’s economy is projected to grow by 3.8% in 2025 and 4% in 2026, up from an estimated 3.7% in 2024, driven by stronger performance in extractive, agricultural, and fishing sectors, particularly crop farming and uranium production.

Modest Growth Amid Global Uncertainties
Bank of Namibia’s Director of Strategic Communications and International Relations, Kazembire Zemburuka, noted that the 2025 and 2026 forecasts reflect downward revisions of 0.2 and 0.5 percentage points, respectively, from the December 2024 Economic Outlook, citing global trade policy shifts. A sharper revision of 2.0 points for 2025 and 1.0 point for 2026 was attributed to ongoing challenges in the diamond sector.

Sectoral Performance and Projections

• Primary Industries: After a 1.8% contraction in 2024 due to drought, primary industries are expected to rebound with growth of 0.8% in 2025 and 1.8% in 2026, fueled by agricultural recovery and uranium output.

• Secondary Industries: Manufacturing, construction, and utilities are forecast to grow by 6.3% in 2025 and 6.4% in 2026, up from 3.0% in 2024. This reflects robust public and private construction, alongside gains in electricity and water sectors, prompting upward revisions of 2.1 points for 2025 and 1.4 points for 2026. Manufacturing alone is projected to rise by 3.7% in 2025 and 4.2% in 2026, driven by strong grain harvests following favorable rainfall.

• Tertiary Industries: Service-based sectors are expected to grow by 3.5% in 2025 and 4.0% in 2026, down from 4.9% in 2024, reflecting slower but stable expansion.

The Bottom Line
Namibia’s economic outlook remains positive, with steady growth expected through 2026, supported by agricultural recovery, uranium production, and infrastructure development. However, challenges in the diamond sector and global trade uncertainties underscore the need for cautious optimism.

SOURCE: The Brief

TECH

PM Urges MTC to Prioritize Data Sovereignty and Universal Connectivity

Prime Minister Elijah Ngurare has urged Mobile Telecommunications Limited (MTC) to champion data sovereignty and ensure inclusive digital access for all citizens as the company celebrated its 30th anniversary in Windhoek on Monday.

Driving National Development Through Connectivity
Speaking at the milestone event, Ngurare emphasized the importance of safeguarding national data and extending MTC’s 98% network coverage to every corner of Namibia. “Data sovereignty is non-negotiable. We must protect our national security and ensure every Namibian, regardless of location, has access to quality connectivity,” he said.

MTC, the country’s leading telecommunications provider, marked three decades of innovation and socio-economic impact, reaffirming its commitment to transforming lives through sustainable investment.

A Legacy of Impact, A Vision for the Future
MTC Managing Director Licky Erastus highlighted the company’s role in advancing key sectors, including education, health, entrepreneurship, and poverty alleviation. “We’ve made significant strides, but the journey demands more. We must innovate relentlessly to improve Namibians’ quality of life,” he said.

Erastus underscored MTC’s community-first approach, pledging continued investment in sustainable initiatives. He also stressed the pivotal role of education in fostering an innovative, corruption-free generation of leaders. “Education is the foundation for a responsible, forward-thinking Namibia,” he noted.

Expressing gratitude to customers, stakeholders, and the government, Erastus celebrated MTC’s loyal base and the bold vision that birthed the state-owned enterprise 30 years ago.

Three Decades of Milestones
Since its inception, MTC has pioneered transformative advancements: launching 3G in 2006, introducing 4G in 2012 as Africa’s second operator, and piloting 4.5G in 2016. The N$1 billion 081Every1 campaign in 2017 tackled the digital divide, followed by expansions into cloud and fibre services in 2018 and the Spectra product line in 2019.

In 2021, MTC became the first state-owned enterprise listed on the Namibian Stock Exchange. It achieved a historic six ISO certifications in 2023, including being Africa’s first to implement the 2022 ISO 27001 standard. This year, MTC launched Namibia’s first 5G trial with Huawei and introduced mobile financial services through its subsidiary, WGA (trading as MTC Maris).

The Bottom Line
MTC’s 30-year journey reflects a legacy of innovation, integrity, and social impact. As it embarks on the next chapter, the company’s focus on data sovereignty, universal connectivity, and sustainable development positions it as a cornerstone of Namibia’s digital and economic future.

Source: The Brief

Meta Launches Standalone AI App to Rival ChatGPT

Meta has unveiled a standalone Meta AI app at its LlamaCon event, positioning it as a direct competitor to OpenAI’s ChatGPT and other AI assistants. Building on its integration across WhatsApp, Instagram, Facebook, and Messenger, the app aims to offer a personalized experience by leveraging Meta’s extensive user data.

Personalization as a Key Differentiator
Unlike competitors like OpenAI and Anthropic, Meta AI draws on user information shared on Meta platforms, such as profiles and engagement patterns, to deliver tailored responses. Initially available in the U.S. and Canada, the app allows users to provide additional details—like dietary preferences—for more customized interactions. Meta emphasizes that this personalization sets it apart in the crowded AI chatbot market.

Discover Feed and Social Integration
The app introduces a Discover feed, enabling users to share AI interactions, such as fun prompts or creative outputs, with friends. For example, a user might share three emojis generated by Meta AI to describe themselves. Interactions remain private unless users opt to share them, though the feed’s necessity is questionable, echoing debates about social features in apps like Venmo.

Privacy Considerations
Meta’s reliance on user data, which fuels its advertising business, raises privacy concerns. Users should be cautious about the information they share with Meta AI, as it could potentially be used to enhance targeted advertising, a core revenue driver for the company.

The Bottom Line
Meta’s standalone AI app marks a bold move to challenge ChatGPT by capitalizing on its vast user data for personalized experiences. While the Discover feed aims to foster social engagement, privacy concerns and the competitive AI landscape will test Meta’s ability to gain traction.

Source: TechCrunch 

PERSONAL DEVELOPMENT

Quote of the Day

Talk show host and television producer Oprah Winfrey on emphasizing gratitude:

“The more you praise and celebrate your life, the more there is in life to celebrate. When you concentrate on what you have, you’ll always end up having more.”

Source: ​What I Know For Sure