A Development Bank of Namibia (DBN) COVID-19 Business Relief Loan of N.dollars 53 million has helped to preserve approximately 950 jobs by financing the salaries of employees of the well-known tourism and hospitality operation, Gondwana Collection Namibia.
The 950 employees are spread across the group’s 28 lodging establishments and businesses.
According to DBN Executive for Marketing and Corporate Communication, Jerome Mutumba, a recovery of Namibia’s tourism and hospitality sector was expected in 2021, but this did not happen due to the continued global impact of Covid, particularly the emergence of the Omicron COVID-19 variant and the subsequent red listing of Namibia and other southern African countries.
He said in a statement yesterday that the industry now hopes that, as a result of very positive current and especially future bookings, the industry will begin to recover in 2022.
“At the height of the Delta phase of COVID-19 infections, Gondwana committed to preserving its workforce and their income as responsibly as possible. Among the measures taken by the group, management has taken significant salary cuts, and other employees have also accepted salary cuts. Other cost-cutting measures included tightening work schedules, limiting overtime, establishing leave schedules, and operating with skeleton crews where possible,” he stated.
Mutumba said DBN is doing everything possible to ensure the industry’s long-term viability.
This includes a repayment moratorium for existing bank customers in the tourism and hospitality sectors, loan restructuring, and the extension of COVID-19 Business Relief Loans to new customers.
Mutumba went on to say that the bank’s investments in the sector, through loans, recognise not only the historic contribution of tourism to the Namibian economy but also the need to preserve capacity for the future.
“DBN is a lender that evaluates its loans in light of long-term outcomes and considers the long-term viability of its investments. Whether it is a small or large enterprise, DBN-financed projects are expected to last well beyond the term of the loan. However, the Namibian economy must be rebalanced in order to reduce its reliance on a few highly productive sectors,” he stated.
In this regard, he said that while tourism and hospitality must be preserved, manufacturing, transportation and logistics must be expanded.
Not only will this increase Namibia’s economic self-sufficiency, but it will also increase the attractiveness of Brand Namibia for future foreign direct investment.
The Development Bank’s COVID-19 Business Relief Loan is backed by capital from KfW, Germany’s Development Bank.
Source: The Namibian Press Agency
