A development financiers’ experience in financing land and housing developments with reference to the Development Bank of Namibia
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Date
2023
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Publisher
University of Namibia
Abstract
The objective of the study was to examine key challenges faced by the Development Bank
of Namibia (DBN) and land and housing Developers in the financing and development of
land and housing projects, with a view to recommending strategies to enhance the
provision of housing finance. The DBN is a Development Finance Institution (DFI), which
endeavours to provide solutions to pressing national economic priorities such as housing.
The study took a descriptive approach with a surveying three distinct participants involved
in the housing provision process, i.e., DBN staff members, Developers and Contractors as
well as Consulting Engineers. The study identified the rising non-performing loans as the
main challenge faced by DBN using cross case analysis. The rising non-performing loans
are ascribed from a combination of internal and external factors such as weak credit risk
assessment, portfolio management inefficiencies by the DBN and weak project
management on the part of Developers or Contractors. Moreover, the study found that
Developers and Contractors lack capital to contribute to equity as required by financial
institutions such as the DBN. Furthermore, the study found that Developers and
Contractors lack technical capacity to execute land and housing projects successfully. The
study recommends for the DBN to refine its credit risk assessment and strengthen its
portfolio management function in evaluating projects. The study further recommends
Developers to enhance their project management skills in order to improve their project
implementation skills
Description
A thesis submitted in partial fulfilment of the requirements for the degree of master in business administration- Finance
Keywords
Public Private Partnerships, Investments, Developers, Development Finance Institution, Development Bank of Namibia, Credit Risk Management, Contractors, Consultants, Non-Performing Loans Portfolio Management