The Development Bank of Namibia provides finance for viable enterprises and sustainable initiatives that contribute measurably to the development of Namibia.

dbn activities

Guided by the conviction that our successes are resources for future generations, we take the long term view, and provide finance for enterprises and initiatives that will make a difference for years to come.

Franchises have a higher success rate than independent business start-ups and are therefore good business models and avenues for job creation and entry for new entrepreneurs.

Sector identification

  • A business that provides goods or services using an established business system and has a recognised brand name.
  • It occurs when a business ('the Franchisor') licences its trade name and its operating methods to a person or group of persons ('the Franchisee') who agrees to operate their business according to the terms of a contract.
  • The Franchisee usually pays the Franchisor an initial fee to acquire the right to the Franchisor's business for a specific, exclusive territory, and thereafter he/she pays an on-going 'usage fee' ('the Royalty') for the use of the trade name and operating systems.
  • The Franchise Agreement also establishes certain obligations on the Franchisor, among others, the provision of ongoing support to the Franchisee in areas like training and marketing.


  • The franchise rights should be registered in Namibia.
  • The Franchisee should have acquired the Franchise rights from the Master Franchisee or from the Franchisor.
  • The Franchisee's rights should be evidenced by a valid and effective Franchise Agreement between the Franchisee and the Franchisor or Master Franchisee.
  • The Franchisor should have successfully operated the Franchise business in his or her country where the Franchise originated and where it was initially registered.
  • The Franchise Brand must be tried and tested.
  • The franchise must have good economic and commercial merit.
  • The Franchisor must have a financial track record acceptable to the DBN.
  • The Franchisor must have the capacity and the necessary infrastructure to support the Franchisee.
  • At least one of the Franchise business owners must be involved in the daily operations of the business.
  • The franchisor should have the capacity and necessary infrastructure to support the franchisee.

Financing options

Wholesale Finance Facility

Under this Facility, DBN advances a loan to a Franchisor or Master Franchisee for on-lending to Franchisees on agreed terms and conditions between the parties.

  • The minimum wholesale finance amount will be N$ 5,000,000.

Individual Finance Facility

Under this Facility, DBN advances loans directly to the Franchisees.

  • For a new franchise (or a new store) the owner(s) should contribute a minimum of 10 per cent of the required establishment cost, with DBN funding up to 90 per cent, depending on the strength of the cash flows.
  • In the case of expansion of an existing franchise, DBN may finance up to 100 per cent of the capital required, provided that the gearing or capital structure does not fall below 30 per cent.


  • Unlimited personal suretyships from the business owners in their personal capacities.
  • Cession of debtors.
  • Cession of stock (if applicable).
  • Cession of shareholders/members loans (if applicable).
  • Other firm security may be called for if considered necessary
  • Collateral is determined on a project by project basis, taking into account risks involved and credit rating score assigned.

Minimum amount

N$ 5,000,000

Repayment period

  • A maximum of ten years with a maximum 12 month grace period on capital and a maximum six month grace period on interest, where required.
  • DBN exercises flexibility, with the business case dictating the grace period and the maximum period, with the latter not exceeding ten years as is the case with other facilities.
  • Maximum ten years (including 12 months grace period on capital and 12 months grace period on interest)

Interest rate

  • Interest is capitalised during the grace period. Determined on a project by project basis.
  • Interest rates will be based on the level of risk and the security provided and may be adjusted for development impact as per DBN's Lending Policy.
  • For individual finance, the applicable rate of interest will be determined based on the level of risk and the security provided and may be adjusted for the developmental impact of the business in the community it services.

Grace period

A maximum of 12 months on capital and 12 months on interest.