November 01, 2024
Finance

DBN hits back at Black Business Leadership Network

February 23, 2022
DBN hits back at Black Business Leadership Network

The Development Bank of Namibia (DBN) has hit back at the Black Business Leadership Network (BBLN) for failing to take responsibility for some of its failures in business.  

DBN CEO, Martin Inkumbi, said the business group should ideally advocate for good business management practices, accountability on the part of entrepreneurs, and not demand a blanket cessation of loan collection efforts by lenders.

“Such demands introduce a new risk factor that lenders now have to consider and discount when lending money,” he said.

“When a business concept has failed, even taking COVID-19 out of the equation, the best response by the entrepreneur is either to change the business concept, or if that is not possible, to close it and invest the capital elsewhere.  That is also flexibility and agility,” Inkumbi said.

This was after the BBLN had accused the bank of disadvantaging black-owned businesses, and called for the halting of all legal processes instituted by the DBN aimed at liquidating and repossessing the properties and assets of black-owned businesses.

The BBLN, in its petition handed after a demonstration last month, also accused the DBN of "derailing and sabotaging national plans, goals, objectives and targets of the government and the country in addressing socio-economic challenges" and "disarming and paralysing previously disadvantaged Namibian entrepreneurs".

However, Inkumbi said entrepreneurs should also learn to adapt and be responsive to changes in the market and economy in general, with the bank willing to engage with those that have clear turnaround plans.

“Adverse macro-economic developments and external shocks to the business environment are bound to occur from time to time, requiring flexibility and agility on the part of lenders and borrowers alike. DBN commits to be responsive to such developments. Where there is a clear recovery or turnaround plan, DBN will and has always come to the table.

“The BBLN should not allow itself to be used by borrowers who see it as an opportunity to avoid loan repayment responsibilities,” he said, adding that DBN is aware of some businesses that defaulted years before the coronavirus pandemic hit the country, but “are now claiming COVID-19 as the problem”.

“Affected members of BBLN are urged to approach DBN on a case-by-case basis to negotiate possible relief measures,” the DBN CEO said.

He said the bank was open to engaging with businesses who are faced with various operational challenges and not limited to only those negatively affected by COVID-19.

“As a matter of operational policy, the Bank negotiates realistic loan repayment arrangements that suit both the Bank and the borrower. This policy is extended to all borrowers who experience business challenges and is not limited to those affected by COVID-19. The policy, in existence since early in the Bank’s operational history, is designed to preserve the development impact of loans. As a responsible corporate citizen, draws no joy nor comfort in the closure of enterprises in the economy. The Bank is preoccupied with interventions which impact the economy positively,” Inkumbi said.

“It is imperative to note that DBN has not called up any loan for any business enterprise that was in good standing before the arrival of COVID-19.The Bank will continue negotiating suitable loan repayment arrangements for borrowers affected by depressed business revenue as a result of COVID-19.”

Rate this item
(0 votes)
Last modified on Friday, 25 February 2022 16:16
Tags
« Nedbank commits to bolster the country’s economic recovery Capricorn Group records N$580.5m H1 profit »

Related items

back to top
Ad Sidebar Small Size
Ad Sidebar big size

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries