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
Namibia’s premier agricultural lender, Agribank, is delighted
to inform the public that the recently launched biomass value chain financing
scheme, is now available to the public. This special scheme is aimed at meeting
the strategic objective of loan book diversification coupled with the Banks
mission to continuously offer innovative agricultural financing solutions.
The Biomass industry has the potential to improve the
streamflow of underground water, refine rangeland productively, create
sustainable employment and serve as an opportunity for farmers to diversification
revenue streams. In addition, the
industry will promote climate smart agricultural practices.
Under the Biomass value chain financing scheme, an
applicant (legal entity or individual) 1) can be the owner of the farm or
leasing a farm from which he/she can harvest biomass to produce charcoal. 2) can
be a processor who buy in charcoal to process and pack for the end market (i.e
retail shops/ restaurants or export/import companies for charcoal. Both
applicants are required to have a permit from the Ministry of Environment,
Tourism and Forestry, in order to harvest the biomass for charcoal.
For charcoal producers, the facility offers loans for
working capital (including food rations for the employees), tractors/trailers,
storage sheds, de-bushing equipment, workers housing including clean water &
sanitation. As for charcoal processors, financing of working capital, general
equipment and vehicles, maintenance workshop, office to operate from, charcoal
processing plant, warehouse and equipment is offered.
For more information, and to apply for the biomass
financing scheme, applicants, can visit any of the Agribank’s offices
countrywide, or the Bank’s website (www.agribank.com.na) or the Biomass Finance Scheme Brochure.
The Bank will continue to play a meaningful
role in ensuring that both communal and commercial farmers have affordable
access to financing, to take
the agricultural sector to the next level.
Issued
by:
Fillemon Nangonya
Public Relations Officer
For
inquiries, kindly contact the Marketing and Communications Division
Tel.:
061 2074355
Email: info@agribank.com.na
Namibia’s premier agricultural lender, Agribank, spearheaded a stakeholder engagement event in Gobabis, Omaheke region, bringing together
all agriculture role players in the region, to consult and engage on how best
to serve farmers in the cattle country. The event took place on Wednesday, 19 January
2022.
Farmers’ union representatives formed part of the
engagement, and presented their challenges, while also proposing solutions.
Among others, farmers indicated that due to drought, farmers are now
disintegrated as each farmer is now focused on the survival of his/her farm,
resulting in less peer-to-peer interactions. As such, farmers are proposing for
Agribank to champion events for farmers to come together, and share information
on addressing various challenges they face.
It was further proposed for Agribank to provide
certificate of attendance and/or accreditation to farmers, after attending
farming trainings facilitated by Agribank. According to farmers, this will help
when applying for resettlement farms at the Ministry of Agriculture, Water and
Land Reform.
Farmers also encouraged synergies between all key
stakeholder in the region, to ensure that bottlenecks in the process of serving
farmers are addressed from all angles. During the engagement, stakeholders
presented their respective roles in the process of developing and promoting
agriculture in the country. Additionally, Agribank loan application processes
and requirements also featured.
On behalf of Agribank, Mr. Regan Mwazi, Executive
Manager Marketing and Customer Strategy responded to some of the issues raised
and praised the institutions for attending and providing inputs. “It is only through stakeholder engagements
such as this one where local solution to local challenges can be provided and
opportunities identified for exploitation to the benefit of the farming
industry,” he stated. Mr. Mwazi also
urged farmers to be organised in order to be heard and take seriously the
information provided to them through various platforms in order to improve
their respective farming techniques.
Commenting on the engaged, Emilie Abraham, Manager:
Horticulture Market Development, Namibia Agronomic Board, expressed her satisfaction
with the meeting, noting that the event helped in providing context on the
responsibilities of individual stakeholders, while also clarifying such
functions in the chain of helping farmers, and growing the sector.
Recently, Agribank’s newly appointed Chief Executive
Officer, Dr Raphael Karuaihe announced that stakeholder engagements will be at
the core of his 100 days in office. As such, more events of similar nature will
be conducted at the auspices of Agribank.
The following institutions were represented: Omaheke Regional
Council, Farmers Unions and Associations, Namibia Agronomic Board, Meat Board
of Namibia, NAMPOL Stock Theft Unit, Ministry of Agriculture, Water and Land
Reform, Ministry of Environment, Forestry and Tourism, Witvlei Village Council,
and the Namibia Biomass Industry Group.
Mr. Regan Mwazi (in blue), Executive Manager Marketing and Customer
representing Agribank during the engagements.
Issued
by:
Fillemon Nangonya
Public Relations Officer
For
inquiries, kindly contact the Marketing and Communications Division
Tel.:
061 2074111
Email: info@agribank.com.na
Agribank’s newly appointed Chief
Executive Officer, Dr Raphael Karuaihe, revealed his first 100 days plan at the helm of the Bank. Dr
Karuaihe made the revelation during his first staff address on Friday, 14
January 2022.
Before detailing his plan, Dr Karuaihe
noted that “I am cognisant of the harsh realities in our country, the extreme
drought, flood and other calamities hurting farmers, who are our
clients, and
therefore necessitating urgent and timely customer service.”
For this reason, Dr Karuaihe has
prioritised stakeholder engagements to be key during his first 100 days, as he wants to listen to
farmers, clients, the shareholder, and other key stakeholders to understand
their perspectives and expectations. “This will assist me in developing the
roadmap towards the fulfillment of the institutional mandate,” he said.
Improvement of operational efficiencies
is another area of focus, during the period. This is inclusive of cost
containment measures, and enhancement of customer service at the
Bank, ensuring that clients are served with excellence, since this has an
impact on Agribank as a brand. Dr Karuaihe further singled out the plan of building on
a good business model that is already established at the Bank, as another action item
during his first 100
days in office. On this area, he stated that, “I must say, I found a very
well-run institution, and there is no need for a crisis management, I will however
strive to
improve on what I found.”
The CEO also aims to promote research
and development in the Bank, to ensure that data on the Bank’s impact in the
country “is well analysed and dissected for efficient planning and execution
purposes,” he stated. Addressing key person’s risk and staff retention are also
other areas to occupy his time during the period, with the eye of ensuring
business continuity.
Lastly, according to Dr Karuaihe at the
end of his 100 days period in office, he will present a road map to the Board
of the Bank. This will detail his plan and vision for the Bank, during his
tenure as CEO.
Issued
by:
Fillemon Nangonya
Public Relations Officer
For
inquiries, kindly contact the Marketing and Communications Division
Tel.:
061 2074111
Email: info@agribank.com.na
Loans are granted against security of fixed property, investment or any other acceptable form of security (fixed deposits, investments and surrendering value of policies). read more
No, Agribank is not a commercial bank. read more
Yes, Agribank can assist you to start farming. read more