Financing options through the DBN presented by David Nuyoma, CEO

1. Financing growth Financing options through the DBN presented by David Nuyoma, CEO to the WBSDI / Namibia International Investors Conference 1 November 2007, Windhoek, Namibia

2. Background • DBN was established as a public company through an Act of Parliament (Act no. 8 of 2002) • GRN provided seed capital and currently only shareholder • Legislation, however, makes provision for other shareholders as well The aims of the bank are • Industrialisation through mobilisation of finance and technical know-how • Optimum, sustainable usage of Namibia’s natural resources • Development of suitable infrastructure that supports economic growth

3. Lending & development framework • DBN provides finance for w Private sector start-ups and expansion w Equity deals w Bridging finance w Mezzanine finance w Enterprise development finance w Small and medium enterprises w Public private partnerships w Public sector infrastructure w Local authorities

4. First-cut requirements for provision of finance • Clear viability and sustainability • Non-speculative nature • DBN finances Namibian participation in projects • Socially acceptable • Environmentally sound

5. Required developmental qualities • Generation of employment (primary) • Generation of incomes (primary) • Due diligence and risk mitigation • Economic diversification • Decentralisation

6. Hallmarks of DBN’s approach • Acceptance of innovation DBN views innovation as a source of growth and assumes a distinctive risk profile • Business logic first DBN seeks the business logic of individual applications rather than resemblance to similar projects • Risk mitigation DBN highlights risk with active involvement from the start and active monitoring of the health of the project

7. Hallmarks of DBN’s approach • Custom financing In the interest of viability of selected projects, DBN tailors deals and assesses interest rates and repayment terms on the basis of projects’ development impact • Robust governance DBN’s ability to take risk is guided by robust principles of governance including transparency in the decision making process, multiple tiers in the approval process and accountability across the organisation • Mentorship DBN contributes to the development of sustainable companies through external support and management advisory services

8. Hallmarks of DBN’s approach • Partnership Development finance is a collaborative endeavour On its own, DBN’s impact will be significantly lessened The Bank’s partners have contributed extensively to its progress and helps it to tap into cumulative best practice The philosophy on partnership involves leveraging partnerships for DBN to draw on the resources and knowledge of institutions with greater experience than the Bank The operational effect of the network of partnership agreements has a current multiplier effect of N$ 8 to every N$ 1 employed by DBN

9. Track record • Operations and projects • The DBN was launched in April 2004 • It has shown consistent, sustainable growth • The most recent financial statements and additions to the portfolio can be downloaded from www.dbn.com.na • The team Led by a board composed of leading figures from the financial industry and private sector Includes project development and management specialists

10. Recent representative projects • Bridging finance for a large mining operation to secure transfer of shares • Finance for establishment of a marble processing operation • Finance for establishment of a water purification plant for the fishing industry • Finance for Nampost Savings Bank to develop electronic banking • Finance for infrastructure for cellular services provider • Finance for development of serviced land for housing in northern Namibia • Finance for educational loan company • Wholesale finance for start-ups of 71 emerging and small enterprises provided through Bank Windhoek with attached mentorship scheme

11. Recent representative projects

12. Thank you