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Agribank and Development Bank sign memorandum of understanding
20 Dec 2022
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.
AGRIBANK TO STOP ACCEPTING CASH PAYMENTS AS OF 1ST OF DECEMBER 2022
26 Oct 2022
Fillemon Nangonya
Public Relations Officer
For inquiries, kindly contact the Marketing and Communications Division
Tel.: 061 2074111 Email: info@agribank.com.na
AGRIBANK INAUGURATES REVAMPED OTJIWARONGO OFFICE
14 Oct 2022
On her part, the Deputy Chairperson of the Agribank’s Board of Directors, Dagmar Honsbein, reiterated the Bank’s position of expanding its footprints, stating that "as a development finance institution, we have laid a solid foundation to ensure that the Bank’s impact is felt across the length and breadth of our beautiful country, Namibia. We will continue to offer innovative financial solutions to both communal and commercial farmers, from production to value-addition." Furthermore, Agribank’s Chief Executive Officer, Dr Raphael Karuaihe, told the audience at the event that "over the past five years, Agribank has embarked on a journey, not only to transform the institution to become the pinnacle of corporate governance and service delivery efficiencies, but also to ensure that it plays a meaningful role in catalysing the transformation and growth of the agricultural sector, through the adoption of a clear strategic plan."
Agribank’s five-year strategic plan focuses on preserving the business in a difficult operating environment, securing sustainable sources of affordable loan book funding, new business growth, maintaining sustainable collections trajectory, maintaining prudent expense management; and robustly managing provisions for bad debt. Moreover, the Bank intends to diversify its loan book for climate resilience and inclusivity, as well as embed automation and operational efficiencies within the Bank to sustain a high-performance environment and enhance brand reputation, while also balancing the mandate for sustainability and shareholder/policymaker/client expectations.
In terms of the loan book statistics for the Otjozondjupa region, the region serves over 2,700 clients on the loan book of Agribank, of which the majority are from Otjiwarongo and surrounding areas. Otjozondjupa’s loan book stands at over N$1.1 billion. Agribank Otjiwarongo office has financed over N$1.8 million to full-time communal farmers, without collateral, through the Emerging Retail Financing Product (ERFP). The office also paid over N$10.7 million to 13 beneficiaries of the newly introduced Women and Youth Loan scheme. As may be commonly known, the top three loan products in the region that the Bank financed are land for beginners, full-time affirmative action loans, and livestock loans.
Agribank’s loans can be utilized for purchasing farmland, production inputs, livestock, farming infrastructure, vehicles and equipment, biomass management, aquaculture, poultry, piggery, post-settlement support, as well as value addition through agro-processing. The Bank also provides training and mentorship services to farmers through the Agri-Advisory Services Division.
