By:Annakleta Haikera
The Agricultural Bank of Namibia (Agribank) has offered loans valued at N$3.1 million to youth in the two Kavango regions over five years.
This was said by Agribank Chief Executive Officer (CEO), Raphael Karuaihe on Wednesday during the inauguration of the revamped AgriBank branch office in Rundu, Kavango East. The office in the town opened its doors five years ago.
“Loans worth over N$ 3.1 million were advanced to 37 youth members in the two Kavango regions. Sixty-seven women benefited from Agribank loans in the Kavango East and West regions worth over N$9.2 million,” Karuaihe said.
He said the number of women and youth could be higher, if one consider that the Bank has also advanced loans to groups, companies and projects involving women and youth valued at over N$85.7 million in these two regions.
The CEO said there are reasons for young people from the two regions to be excited as access to financing viable agricultural projects through Agribank is possible.
“Agribank’s loans can be utilised for purchasing farmland, production inputs, livestock, farming infrastructure, vehicles and equipment, biomass management, aquaculture, poultry, piggery, post settlement support as well as for value addition through agro-processing.”
He said the Bank also provides training and mentorship services to farmers through the Agri-Advisory Services Division.
Agribank’s office in the two regions currently serves 316 active clients with 494 loan facilities worth N$154 million. Of the two, Kavango East region has the biggest number of clients standing at 305, while Kavango West has 11 clients with a loan book value of N$2.9 million.
“The two Kavango regions are strategic growth centres of Agribank and having a centre in the regions will improve our service delivery in the regions whilst creating opportunities for growth,” the CEO said.
At the same occasion, Kavango East governor Bonifatius Wakudumu said the region has the highest rainfall compared to most other parts of Namibia.
“Because of that, this region has immense agricultural potential for livestock farming, the cultivation of a variety of crops, as well as for organised forestry and agroforestry, which stimulates furniture making and related industries,” the governor pointed out.
Given that those in the Kavango East and West regions are communal farmers and therefore have no access to collateral loan products, Wakudumu said Agribank’s Emerging Retail Financing Product (ERFP) product is the first step towards financial inclusion for communal farmers.
In 2019, the Bank reported that it had approved loans worth over N$7.1 million for full-time communal farmers under the Emerging Retail Financing Product (ERFP).
Wakudumo also encouraged communal farmers in the two regions to take advantage of the opportunity to approach Agribank with their financing needs so that they actualise their potential to become the breadbasket of Namibia.
“It is pleasing to note that the Bank is stepping up its game to finance the secondary production in the agricultural sector – namely value addition. It is also common knowledge that a number of Green Scheme projects are found in this part of the country,” he noted.
In May 2022 Agribank extended the farmland loan repayment period by five years for the youth (under 35 years of age) who seek loans to buy agricultural land or expand their existing farms.