01 Jul 2020
“We need to run a sustainable Bank and not run
it down. The Bank needs to continue to assist more people and not just the ones
that were assisted in the past.” These were some of the sentiments expressed by
Agribank’s Chairman, Michael Iyambo, at the start of Agribank’s countrywide
stakeholder information workshops in Windhoek yesterday.
The Bank
introduced the COVID-19 relief and stimulus package from 1 June 2020 to
mitigate the impact of the pandemic on the clients, while stimulating optimum
production at the farm level. The objective of the road show to be held under
the theme, “Let’s Talk”, is not only to share
information about the stimulus package, but also to clarify issues and leave
stakeholders with a better understanding on this matter.
Speaking at
the event, Iyambo, stated that the Bank puts a premium on stakeholder engagements and
consultations to foster mutual understanding about its operations and
activities. He
reiterated that the mandate of the Bank is only attainable through sound
corporate governance and prudent management of funds. “As a Bank, we need to be
sustainable and self-funding, hence our operational model should support
sustainability and responsible lending at all times”, Iyambo noted.
According to him, the Bank has a deep
appreciation of the challenges facing the agricultural sector, from prolonged
drought, dwindling market prices, reduction in its contribution to GDP and of
late, the impact of COVID-19. He explained that the stimulus package is an
outcome of extensive consultations with key stakeholders from the farmers
unions to the shareholder and internal staff members. “Naturally as is the case
with consultations – not all proposals put forward by the diverse group of
stakeholders emerge in the same format in which they were made.
However, Iyambo emphasised, that the package
covers all relevant aspects that have emerged from these consultations; and the
Bank endeavoured to come up with a package that is feasible under the current
economic conditions, whilst responding to these issues.
He noted that “customers would always want more
flexibility and relaxation of requirements, but, as a Bank, we can only do what
is feasible and sustainable. Clients must also be prepared to meet the Bank
half-way, instead of always demanding a free pass”.
On his part,
Agribank’s Chief Executive Officer, Sakaria Nghikembua, who provided a detailed
overview on the mechancs of the stimulus package, explained that
Government provided a guarantee for the Bank to borrow money for disbursement
to qualifying clients in the form of stimulus loans. Nghikembua noted that the guarantee
is not a physical transfer of funds from the Treasury to the Bank, but the
latter is required to go out in the market to raise these funds – and do so at
affordable interest rates. “This is naturally a challenge when you have clients
whose payment record is not optimal”, Nghikembua cautioned.
According to him, it was important for the Bank
and the shareholder to set minimal conditions, to ensure:
i)Financial sustainability through securing
minimal cash inflows into the Bank during the relief period;
ii)That the Bank is able to carry out its mandate
by honouring its commitments to clients whose loans have already been approved
prior to the outbreak of COVID-19; and to assist new and repeat clients who
need assistance throughout this period – including women and youth who face a
high rate of unemployment in our country;
iii)The Bank continues to stimulate the
agricultural sector through new loans extended.
The Agribank chief is therefore appealling to clients
to embrace the COVID-19 relief and stimulus package and to take advantage of
the various relief measures it offers. “It is a fair, reasonable and practical
offering – balancing the interest of the tripartite partners - namely the
Shareholder, Clients and the Bank. I implore stakeholders in the agricultural
sector to deploy their energy and zeal under the new normal to stimulate
production and optimise output”, Nghikembua concluded.
Issued by:
Rino Muranda
Manager: Marketing and Communication
For enquiries,
kindly contact the Marketing and Communications Division at:
Tel.: 061
2074332/Fax.: 061 2074206
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
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Yes, Agribank can assist you to start farming. read more