Namibia’s agricultural premier lender, Agribank, has commenced with the roll-out of the drought relief subsidy, which was announced by Hon. Iipumbu Shiimi, Minister of Finance and Public Enterprise (MFPE), during his budget speech in February 2024. The drought relief will be implemented effective today (10 July 2024), and it will be in the form of an instalment relief and a penalty interest waiver for clients.

First intervention: Based on the criteria agreed with MFPE, this intervention of instalment relief is limited to Agribank clients with farmland and livestock loan accounts. The instalment relief targets clients who are in good standing and whose instalments fall due from 1 April 2024 to 31 March 2025. Clients who fell into arrears between 1 April 2023 and 31 March 2024 will also be considered. Accounts of qualifying clients will be credited in full as and when instalments fall due, and past-due accounts will be credited with immediate effect. The total commitment for this intervention is N$104.6 million.

Second intervention: As a gesture of goodwill, Agribank offers to waive penalty interest amounting to approximately N$83 million for this financial year (April 2024 - March 2025) for all our clients that are in arrears.

"We are facing challenging times for both our clients and the bank. We want both to survive, and we are trying to balance many considerations to ensure our clients receive some scope to make it through this difficult period", stated Dr Raphael Karuaihe, Chief Executive Officer.

For Agribank, our main and sustainable source of funds is loan repayments by our clients. This means that extending the same relief to all clients of the bank is unfortunately not a financially viable option at this stage".

While we acknowledge that the instalment relief may not reach every affected farmer, we trust that our consideration of waiving penalty interest for all clients in arrears serves as a welcome relief to all our valued clients. We will continue to maintain a flexible approach in our discussions with individual clients in our attempt to find appropriate solutions in line with the Bank’s policies and procedures.

Issued by:
Fillemon Nangonya
PUBLIC RELATIONS OFFICER
For enquiries, kindly contact the Marketing and Communications Division at:
Tel.: 061 2074308 Email: info@agribank.com.na

The Agricultural Bank of Namibia (Agribank) is pleased to announce the introduction of a Credit Life Insurance product, effective 1 June 2024.The Credit Life Insurance serves as a financial security and protection against unforeseen events, tailored exclusively for Agribank clients.

The Agribank credit life insurance offers benefits beyond covering death and protecting a client’s estate. If a client becomes permanently or temporarily disabled, is diagnosed with a serious illness, or faces retrenchment, the insurance will cover the client's loan instalments for a specified period, providing essential financial relief during challenging times.

Moving ahead, Agribank hereby inform the public that the credit life insurance becomes a mandatory requirement for all eligible clients, effective 1 July 2024. However, applicants/clients will not be compelled to take up the Agribank Credit Life Insurance, but they do have an option of providing an alternative life cover from an insurer of their choice.

Similarly, existing clients with life insurance policies can continue to use their current coverage, although they are also invited to participate in the Agribank Credit Life Insurance program to enjoy its comprehensive benefits.

According to Chief Executive Officer, Dr Raphael Karuaihe, “The introduction of the Credit Life Insurance is a significant step forward for Agribank. It supports the sustainability of our clients' farming and agro-enterprise ventures by providing a financial safety net against unforeseen events. Furthermore, the initiative demonstrates Agribank’s dedication to offering innovative and affordable products and services.”

The Agribank credit life insurance is underwritten by Momentum Metropolitan Namibia Limited, while Agribank is designated to market and sell the credit life insurance to its customers.

In line with its commitment to financial inclusion and increased accessibility of its loan products, Namibia's premier agricultural lender, Agribank, is pleased to announce the introduction of its Branch-on-Wheels initiative, a project that is aimed at taking Agribank services closer to its clients, both prospective and existing, starting in February 2024.

The Branch-on-Wheels will be deployed according to the following schedule: 5-9 February, Tsumeb; 19- 23 February, Opuwo 3-5 March, Karasburg; 7-8 March Bethanie; and 17-19 March, Gochas. Operating hours will be from 08h00 – 17h30 in all areas.

According to the Bank’s Executive: Sales, Ms Hildegardt Martin, “the Branch-on-Wheels concept aspires to extend Agribank services to customers in areas with no Agribank branch, as clients in such areas find it hard to reach our physical branches that are only found in selected towns. Therefore, the Branch-on-Wheels will go to the customer, breaking geographical barriers that hamper farmers/clients to access funding from Agribank, in order to realize their farming potential.”

Additionally, Martin further assured the public that “the Bank takes this initiative very seriously and will ensure that the entire country is covered by assigning a Branch-on-Wheels team for each of the eight branches of the Bank. By doing so, the Bank expects to reach a wider customer base in remotest towns, at the convenience of the customer.”

On his part, Agribank’s Manager: Marketing and Communication, Mr Rino Muranda, implored the clientele of the Bank to “come and engage our competent staff in the scheduled areas/towns, who will be providing the following services: accepting loan applications; general enquiries and information sharing; printing of statements; update on loan applications status; and loan approvals where possible.”

Muranda further added that “Agribank offers competitive fixed interest rates as low as 4% for some loan products (communal, laborer houses in commercial areas); it provides flexible repayment options often based on the cashflow of the agri -enterprise; while also offering extended loan repayment periods resulting in affordable instalments.”

Agribank serves all farmers, including commercial, communal, emerging, and resettled farmers. The Bank finances the entire Agricultural value chain, offering a range of loan products such as vehicle and tractor loan, salary-backed/no collateral loan, horticulture production loan, farming infrastructure and implements loan amongst others. In recent years, Agribank introduced the women and youth scheme, a targeted intervention that offers relaxed terms and conditions in favour of women and the youth.

Lastly, Agribank hereby invites the public to contact the Bank at 061 207 4356, for any questions related to the Branch-on-Wheels initiative. Public members can also visit the Bank’s website www.agribank.com.na for more on loan products of Agribank.

Issued by:
Fillemon Nangonya
Public Relations Officer
For inquiries, kindly contact the Marketing and Communication Division Tel.: 061 2074308/10/55 Email: info@agribank.com.na

Namibia's premier agricultural lender, Agribank, convened its Annual General Meeting (AGM) in Windhoek on 27 September 2023. The event was a platform to showcase the Bank’s accomplishments and present strategic plans that will shape the future of the institution. The AGM was graced by the presence of Honourable Iipumbu Shiimi, the Minister of Finance and Public Enterprises.

During the financial year ending on 31 March 2023, Agribank significantly boosted its loan disbursements, reaching over N$284 million compared to the previous year's N$194 million. Notably, 564 clients benefited from these loans, up from 440 the prior year.

Land purchases continued to dominate the loan allocations, amounting to N$98.2 million and covering 134,122 hectares in FY2023, a considerable increase from N$55.1 million and 57,965 hectares in FY2022. Livestock purchases also saw a rise, reaching N$76.8 million in FY2023 compared to N$52.2 million the previous year.

Loans extended to women increased to N$55.4 million from N$30.1 million in 2022, while youth loans rose to over N$30.6 million in FY2023 from N$20.5 million in the prior year. The bank supported full-time communal farmers without collateral through its Emerging Retail Financing Product (ERFP), providing over N$25.2 million, up from N$12.6 million in the prior fiscal year. Additionally, the no-collateral scheme backed by salaries aided employees engaging in part-time farming, with N$13.5 million disbursed in FY2023 compared to N$10.1 million during the FY2022.

Agribank's Chairperson, Josephat Mwatotele, acknowledged the bank's commendable financial performance, highlighting a surplus of N$49.5 million. “I am encouraged by the sales and collection efforts that are on an upward trajectory, despite operating in a very difficult environment”, Mwatotele stated. He emphasized the challenges posed by weather patterns with frequent droughts as well as global events that are continuously increasing input costs and thereby squeezing disposal income of farmers. The focus moving forward includes stakeholder engagement, operational efficiencies and enhanced complaints management system to improve customer service, underpinned by best governance practices.

Honorable Shiimi applauded the Agribank Board and Management for “playing an active role in the transformation of agriculture, by contributing to efforts to remove barriers across the agriculture value chains”. Shiimi further urged the Bank’s leadership to use such platforms to create opportunities for farmers and encourage them to adopt climate resilient practices. The minister also indicated that his ministry is working on new approaches for governance of public enterprises, which include the coordinated Board development program for state owned enterprises, lifting of key performance indicators from strategic business plans, leadership development within SOEs as well as formalizing performance culture as some of the key requirements for reporting at AGMs and public enterprise governance going forward.

At the occasion, Agribank Chief Executive Officer Dr Raphael Karuaihe, who presented the Bank’s operational highlights, noted that prudent expenses management, enhanced momentum on sales growth and the sales automation initiatives were key focus areas for the review period. Dr Karuaihe also stated that going forward, the Bank will focus on strengthening engagements with the shareholder, forging strategic partnerships across the agricultural value chains, developing a sustainable funding model, enhancing collection and arrears management, auctions prevention strategy, aligning product innovation and inclusion as well as compliance with the public enterprises’ governance act.

Pictured above: Seated – Hon. Iipumbu Shiimi, Minister of Finance & Public Enterprises (in the middle); Mrs Peyavali Hangula, Deputy Board Chairperson (L); and Mrs Dolly Nashandi, Board Member (R). Standing from L-R: Mr Josephat Mwatotele, Board Chairperson; Mr Brian Katjaerua, and Mr Alfred Sikopo, Board Members.

Agricultural loan disbursements by Agribank increased by 40% in 1Q2023/24 (April–June 2023) compared to the corresponding quarter of the previous financial year. The recorded increase is mainly driven by triple-digit growth in farmland loans as well as livestock loans.

Total loans advanced for the quarter under review stood at N$74.3 million, compared to N$46.9 million for the first quarter of 2022/23 financial year. In addition to the farmland and livestock loans, impressive growth was also noted under the crop sector, mainly propelled by crop production loans to irrigation farmers, specifically in the Otjozondjupa region. This supports the Bank’s strategy of loan book diversification.

Loan distribution by gender and age categories shows that males continue to dominate the loans advanced, accounting for 59% in the 1Q2023/24 compared to 46% in the corresponding quarter in the 2022/23 financial year. Loans advanced to females accounted for 18% in 1Q2023/24, which is a decline when compared to 30% in the corresponding quarter in the 2022/23 financial year. Groups and companies accounted for 23%, which include male and females. In terms of loans advanced by age, 35% of the loans were taken up by individual farmers under the age category of 31–40 years. This demonstrates the Bank’s efforts to deliver on its socio-economic mandate through targeted and special financing solutions to attract participation of women and youth in the agriculture sector.

As the private sector credit extension picked up, Agribank observed an increase in the agricultural extension market share of 46% in the first quarter of 2023 compared to 45% in the prior year. The increase could be attributed to the competitive loan terms offered by Agribank, amidst a rising interest rate environment.

As a national development finance institution, Agribank will continue to play a catalyst role in addressing key national development issues such as food security, poverty reduction, and employment creation within the agriculture space. Agribank strives to ensure inclusive development by empowering smallholder and large commercial farmers through access to tailored agricultural loans, training as well as advisory services.

The newly appointed Board Chairperson of the Agricultural Bank of Namibia, Mr. Josephat Mwatotele, has announced that financial sustainability, service delivery and socio-economic transformation will be the key focus areas during their tenure as Board of Directors of the Bank. Mr. Mwatotele made the announcement during the inauguration of the revamped Agribank Rundu offices, on Wednesday, 15 February 2023.

The Agricultural Bank of Namibia (Agribank) and the Development Bank of Namibia (DBN) have signed a memorandum of understanding (MoU) to cooperate and co-finance controlled environment agriculture activities in Namibia. The signing took place on 01 December 2022, in Windhoek.

The MoU recognises the joint interests of the two banks in promoting agriculture as a route to economic activity and food security. Agribank promotes agriculture through financing the entire agriculture value chain and related activities. DBN provides finance for agricultural infrastructure, manufacturing of agricultural inputs and provision of agricultural services, as well as enterprises that process agricultural produce and manufacture food.

Controlled environment agriculture finance envisages provision of land and facilities that enable consistent productivity with infrastructure that reduces the impact of drought and variable weather. This may include hydroponics, vegetable tunnels and green schemes. It also encompasses aquaculture.

In terms of the MoU, the banks will also identify parallel opportunities of mutual interest. For instance, if DBN receives a request for direct financing for agriculture it will refer the request to Agribank. Agribank may similarly refer requests for financing for agri-processing facilities to DBN. Both banks may collaborate on finance for controlled environment agriculture.

At the signing ceremony, Agribank’s Chief Executive Officer, Dr Raphael Karuaihe, said collaboration with other institutions to pool financing resources speaks directly to the Bank’s strategic initiative of targeting high impact projects to transform our economy and the agriculture sector, in particular.

DBN CEO Martin Inkumbi, stated that DBN has identified controlled environment agriculture to focus on, as this industry inherently mitigates many of the risks usually associated with agriculture, and with limited background in agriculture, it greatly reduces the risk DBN has to mitigate and manage in the agricultural space.

The Memorandum of Understanding is valid for two years from the date of signature, with the option for renewal at the end of the term.

As a strategic player in the agriculture sector, Agribank continuously supports the agricultural sectorin the country as part of its mandate to promote growth and development of the sector. Agribank’s support is not limited to its core mandate of financing agriculture and agriculture related businesses, but also takes interest in socio-economic issues that do not necessarily have impact on financial performance of the Bank. In this regard, Agribank provides sponsorship towards support of local agriculture shows and exhibition events country wide.

Agribank strongly believes that support to such events does not only promote brand visibility, generate sales leads but it also serves as a platform for farmers and all stakeholders across the value chain to share information experience to improve productivity and sustainability of the agriculture sector. The shows and fairs provide an opportunity for farmers to market their produce and generate income and for other players across the value chain to showcase inputs, services, technologies and innovation necessary for the growth and development of the sector and the economy at large.

Agribank therefore recognizes these opportunities, and thus has taken a deliberate decision to support local agricultural shows and exhibition events through its corporate social responsibility (CSR). Through this avenue, the Bank is ploughing back to the community while also stimulating business activities in the agriculture industry and the country at large.

For the past financial years 2019/2020, 2020/2021, and 2021/2022, the Bank spent an amount of N$1.066million towards its corporate social responsibility. The CSR investments focused mainly on supporting livestock auctions, horticulture production, agro-processing, and farmers’ support services. The social responsibility support was not only provided to agricultural shows and exhibitions, but a substantial amount also went into agricultural projects and initiatives such as community and school gardens, aimed at uplifting sustainable community food security programmes and entrepreneurial capabilities. In addition, industry partners such as farmers' unions, consortiums, congresses, and cooperatives also formed part of the beneficiaries of the corporate social responsibility fund of the Agribank.

The Bank is always inundated with requests for support and sponsorship from various institutions and groups. However, considering the difficulties within the business environment that the Bank operates in, the process of allocating funds ensures an equitable distribution of resources across all the 14 regions of the country. The Bank also proactively looks for strategic agriculture events and projects for possible support and sponsorship, in line with its policy and procedures.

Issued by:
Fillemon Nangonya
Public Relations Officer
For inquiries, kindly contact the Marketing and Communications Division
Tel.: 061 2074355 Email: info@agribank.com.na