Government considers the development of aquaculture in Namibia as a sector with considerable growth. The demand for financing Aquaculture projects has been an ongoing concern until March 2010 when the Agricultural Bank of Namibia and the Ministry of Fisheries and Marine Resources signed a Memorandum of Understanding toward financing Aquaculture businesses.
Aquaculture is focused in two types (Freshwater & Marine Aquaculture).
This refers to the cultivation of aquatic organisms where the end product is raised in fresh water; earlier stages of the life cycle of these species may be spent in brackish waters or marine waters.
This refers to the farming of high valued aquatic organisms (e.g. shellfish) with the goal of maximizing profits practiced by small to large scale producers who are active to participate in the market.
1. Short–term loan.
This is mainly for a short period less than 3 years and can be utilized for:
2. Medium–term loans
- Working capital
- Purchasing of production inputs (feed, seed, packing material and other short-term expenses that will increase production). Repayment of short-term is based on the reproductive and life cycle of species that are being cultivated such that:
- Loans granted for species that have an on-growing cycle of less than a year to market size, such as (shrimp, oyster, marine fin fish, clams and bivalves) repayments are too effective annually at the lending rate.
- Those species that have a reproductive and life cycle of longer than 1 year such as (Catfish and Abalone), interest can be capitalized for the first three years.
This funding will be over a medium period (5-10 years)and will mainly be for:
3. Long term loan
- Purchasing of brood-stock and spat (e.g. abalone).
- Purchasing of machinery, equipment, pumps, construction of ponds etc.
- Light delivery vans, trucks, and other essential vehicles.
for a period (10-25 years)
- Long term loans to be used to purchase land; construct of infrastructure; drilling of boreholes; and are normally used to expand current business operations.
SECURITY & INSURANCE
- Applicants with sufficient security and collateral will be subject to conditions as laid out in the guidelines on financing Aquaculture businesses as well as in the Agribank Credit Policy (i.e. mortgage, policy with surrendering value, Investment & suretyship).
- Where no or insufficient security is available, the following conditions will apply:-
a) A cession for a minimum of 10% of the sales of the harvest towards the annual repayment.
b) All assets must be insured.
c) All loose assets to be bonded till such a time the loan is repaid in full.
In order for a person or company to apply at Agribank for a loan, she/he should have at least met the basic requirements as set by the Ministry of Fisheries and Marine Resources as well as Agribank
- A detailed feasibility study.
- Possession of valid Aquaculture license.
- A detailed business plan.
- Clean credit record.
- Site: Land should be provisionally available from the relevant Municipality, Regional Council or other authorized body. In case the applicant(s) is not the owner of the site where the business/project will be conducted, a long –term lease contract should be in place.
- Availability of sufficient water- depending on the size of the project the availability of water is very important. The necessary water rights or permit should be in place.
- Species - the species to be farmed with must be commercially viable. All imported species must be approved by the Namibia Standard`s Institute (NSI).
- Qualified manager(s)/ personnel- the financial business plan should thoroughly address the qualifications and knowledge of the key personnel/ farm manager. It is very important for the survival of such a project that certain farm managers should have sufficient knowledge.