Development Finance Institutions are exceedingly important for growth of Transport: GDP and Job Creation

contributed by:

Authors:Dr JohnSteytler (CEO of DBN )andHellenAmupolo (Chief Investment Officer of the DBN)

In June, I had the pleasure of being part of a panel discussion organized during the African Hospitality Investment Forum (AHIF) in Windhoek. My fellow panelists were experts in hospitality and finance, bringing different perspectives and opinions to the fore when it comes to investing in the tourism and hospitality sector Some assume that commercial financial institutions and the Development Bank of Namibia (DBN) fulfill the same role, but we do not. We are also not in competition with commercial banks. Development Finance Institutions (DFIs) are partners in development and collaborate with organizations that understand how critical development is to Namibia and Africa Tourism and hospitality are among the essential sectors in which DBN is active

Namibia is not unique in having established a DFI, in most countries across the world, development banks in one form or another have played a vital role in the development of economies, uplifting and modernizing nations The World Bank was created in 1944 to provide loans and grants to the governments of low- and middle-income countries and fund capital projects It helped rebuild economies and countries after the devastation of World War II. Germany's KFW, established in Germany in 1948, does much the same as the World Bank and other development banks. DBN works to improve livelihoods across Namibia by investing in capital projects in different economic sectors

DFIs across Africa emulate this, but very much within an African context. These are specialized institutions that provide medium and long-term credit lending facilities. Their main objective is to serve the public interest instead of earning profits For instance, they provide financial assistance to both public and private sector institutions and are crucial to Namibia's growth The finance that Development Banks (DBs) provide is sometimes called 'lazy capital, ' which is capital that can take its time to produce a return on investment However, we prefer to think of it as 'patient capital' . DFIs provide long-term finance, as we look to long-term development and impact and growth of the projects we invest in.

It may come as a surprise, but we often work with commercial financial institutions to ensure that a project such as a lodge, hotel, or tour operator gets the relevant funding in the short, medium, and long term. DBN is not a for-profit institution, but we do need to keep a close eye on our loan book. If we do not get a return on our investment at some point on the projects we finance, we will cease to be able to continue to fund projects in the future DBs differ from commercial banks, as banks facilitate short-term financing The structure of DFIs means they avoid extending short-term loans because development is a long-term process.

During the AHIF panel discussion, it became clear that the difference between commercial and development banks lies in the fact that DFIs don't look at projects in isolation because they cannot be derisked In short, DBN would be reckless if it were to fund a project in isolation without understanding the ecosystem. We believe that understanding the tourism and hospitality ecosystem is vital for successful project funding and development It represents a whole value chain of companies and businesses, where each link plays a vital role in the tourism experience of a country Every link in the hospitality chain must be developed and is critical for the whole sector to thrive and offer job and revenue security to those employed and operating in the sector. Developing an ecosystem is not done in a vacuum and the partnerships that DBs have with local and international commercial financial institutions form the bedrock of a nation's long-term socio-economic growth and development It certainly does so in Namibia

Press Release

RDJ Consulting renews its Memorandum of Agreement with the Namibia University of Science and Technology (NUST)

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On June 24, 2024, RDJ Consulting (www rdjconsulting co za) renewed its Memorandum of Agreement (MoA) with the Namibia University of Science and Technology (NUST) for intake of Work Integrated Learning (WIL) students The successful partnership, which began in 2019, continues to pave the way for future leaders, offering invaluable handson experience and bridging the gap between academia and industry.

At RDJ Consulting, students will have the invaluable chance to apply their theoretical knowledge in real-world settings, supported by mentorship, training, and exposure to industry best practices we believe in nurturing the next generation of talent, providing them with a platform to thrive, innovate, and make meaningful contributions to their chosen fields Our internship program serves as an opportunity for students and recent graduates to immerse themselves in a dynamic, real-world environment where they can apply their knowledge, refine their skills, and explore their passions under the guidance of seasoned professionals

For over eight years now, RDJ Consulting has proudly hosted interns through our annual internship program, dedicated to providing invaluable hands-on experience and fostering the next generation of professionals. We've welcomed both undergraduate and postgraduate students from various universities across Namibia, neighbouring African countries, and beyond Our interns have pursued qualifications in Economics, Statistics, Mathematics, Journalism, Communication, Media Studies, Graphic Design, Computer Studies, Environmental Studies, Policy, Logistics, and more

After the signing of the MoA by Dr. Erling Kavita, Executive Director of NUST: Academic Development and support, and Satellite Campuses, and Mrs Renee Jarrett, Group Executive Administration for RDJ Group, Dr. Erling Kavita, expressed enthusiasm for the updated MoA, stating, “I am happy to learn that this is from 2019 and you are still interested. We are very happy, and we will not fail to return the favor”. He was further pleased to know that RDJ serves as a board member of a NUST qualifications committee since 2020 and that it has played a significant role in providing support for bridging the gap between academic qualifications and the job market Meanwhile Ms Chilombo Priscila – RDJ’s Internship Manager and Group Executive Operation emphasized that “RDJ Consulting looks forward to having an even more active collaboration with NUST through the updated MoA, which will see more activities done for the benefit of the students and both institutions in this post-covid era”.

Press Release

RDJ Consulting renews its Memorandum of Agreement with the Namibia University of Science and Technology (NUST)

The partnership, will continue to offer NUST student’s opportunities to work alongside seasoned professionals at RDJ Consulting, providing them with a platform to apply their academic knowledge in real-world settings. This initiative aligns with both RDJ Consulting and NUST's commitment to excellence, innovation, and the development of future talent

About RDJ Consulting Services CC

RDJ Consulting Services CC. (also referred to as RDJ Consulting, or simply RDJ) is a 100% Namibian Energy and Sustainability Consultancy with more than 30 years' experience in the utility (Water, Energy and Telecoms), rural development, environment and transport sectors. Founded in 2010, our a single mission is to make a difference in the Energy & Sustainability landscape Our experience as an integrated professional services firm that builds better communities through planning, design, and delivery of physical and social infrastructure helps support our clients in all aspects going forward RDJ Consulting is based in Windhoek, Namibia has extensive experience in Southern Africa, Asia, Britain, USA and the Caribbean. We thus work with governments and agencies to address issues in developing countries. See our publications issuu.com/rdjpublishing.

About Our Internship Program’s Impact

What sets us apart is the fact that over 80% of our interns get employed at renowned local and international institutions after their internships with us, while the remaining generally opt to further their studies Because of our achievements, RDJ Group has built continued relationships with local tertiary institutions, and this resulted in signing Memorandum of Agreements (MoAs) with them to take in their students on three-month internship cycles required to complete their WIL module. The purpose of our internship program is to build professional graduates that are employable in the job market and help reduce youth unemployment challenges in the country and beyond.

2024