DBN offers N$1m for innovation

NAMPA
Development Bank of Namibia (DBN) head of marketing and corporate communication, Jerome Mutumba, has announced that the winning project in the bank’s annual Innovation Award competition will receive N$1 million in funding.

He says this is a twofold reflection of the reality of the financial requirements for establishing an enterprise based on innovation, as well as the bank’s serious commitment to the concept.

Mutumba said the bank is seeking late-stage entrants who have refined their models and done initial planning, with a view to launching their projects in the near future.

He stressed the award recipient should not be in the speculative phase, but should require funding for operational requirements, final studies and an investigation to refine feasibility, as well as funding for the acquisition of technology and operating capital.

Entry forms available on the DBN website reflects the nature of the ideal recipient.

In addition to a detailed understanding of innovation, it also requires the recipient to present a business plan, which includes a cash flow forecast and CVs of key individuals involved in the management of the enterprise.

The N$1 million prize reflects the development return that the bank expects on its investment, Mutumba said.

“We want the satisfaction of knowing that the yield of the award is a highly functional addition to the economy that does not just reflect blue sky thinking.”

The concept of innovation, Mutumba elaborates, has taken root, and there is a stream of innovative ideas emerging in Namibia.

Now it is time to up the game, and build the body of experience, knowledge and examples of how to take the final leap from vision to operation, he said. The 2018 Innovation Award is a significant step on this path.

Mutumba said the experience of the bank has been that the final leap from plan to operational reality is costly and can be delayed by a lack of access to capital.

The amount of N$1 million, he explains, will significantly address this challenge.

The recipient of the award may also be granted the ability to draw on the DBN Project Preparation Fund, as well as capacity building through the bank’s client support function.

Mutumba said entry is also open to enterprises that have already been established.

The closing date for entries is 28 September, and entry forms with guidelines and rules are available at www.dbn.com.na/innovation

Previous winners include Eenda Nawa, which provides travel insurance subscription by text message, Medi-Rad, which submitted a proposal to provide mobile mammography services in rural areas, and Kiyomisandz, a local manufacturer of cosmetics. Namibia Ceramics, the 2017 winner, submitted a proposal to manufacture ceramic tiles from locally mined clay.

Mutumba encouraged entry, saying all the finalists can benefit from entering.

Although there will only be one recipient of the award, the work completed by finalists will be an investment in the feasibility of their projects, enhancing their bankability. The bank may extend invitations to apply for finance, and the plans may be the basis for applications to other sources of funding.

On the topic of DBN’s commitment to innovation, Mutumba said it is an absolute prerequisite for the growth of the economy. The bank provides finance for a stream of similar projects, which represent tested models that are adopted by enterprises of varying sizes.

However, if innovation is not introduced into the national economic system, local competitiveness will degrade in the face of competitive elements imported from other countries, Mutumba said.

Manufacturing and the processing of local resources is of particular interest to the bank.

This includes agri-processing and associated industries to improve productivity and efficiency in rural areas. The bank also attaches value to strengthening the efficiency of the existing use of resources. Mutumba points to the bank’s ability to finance water saving technology in industrial processes, as well as pioneering finance for renewable energy. The bank also provides finance for technology that improves efficiency in markets and sectors, and this can extend to finance for innovative services.

In the past DBN has provided finance for NamPost’s biometric banking system, semi-potable water to alleviate the pressure on potable water, to Cell One and African Deli, which innovated the food manufacturing sector with packaged matangara, a local delicacy.