The study investigates the impact made by the Development Bank of Namibia
(DBN) on employment creation through the provision of loans to the private
sector including Small and Medium Enterprises (SMEs). The Development
Bank of Namibia extended its first loans in 2005; the study therefore evaluates
the impact made for the period 2005 – 2009. Using the data on the investment
made during the period under review simple descriptive statistics were applied
in analysing the impact made. The results obtained suggest that the impact
made in terms of job growth and employment creation is relatively small given
the liquidity position of the bank as well as the devastating rates of unemployment
in Namibia. Fewer new jobs were created in relation to the total number
of the unemployed in Namibia, which suggest a rather slow pace. The slow
pace therefore indicate that more work need to be done if the sky-rocketing
unemployment rates in Namibia are to be brought to a minimum possible. The
study then took a closer look at the sectoral spread of loans, which showed
that most of the loans have gone into the non-traded sector which may indicate
symptoms of the Dutch disease problem, and concluded on this front that
policies should stimulate competitive enterprises in the traded sector for long
term economic growth