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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

The Agricultural Bank of Namibia hereby informs its clients, prospective clients, and all stakeholders that, as from the 1^st of December 2022, Agribank will no longer accept cash payments. The Bank will only accept payment through electronic transfer, deposits at commercial banks and point of sale (POS) at the branches. This decision to discontinue cash payments at Agribank branches is in line with the Bank’s strategy to effectively manage the security risk facing the Bank’s employees that are responsible for receiving and handling cash payments across all eight branches of the Bank.

Additionally, this changeis an effort by Agribank to further contribute to the combating of money laundering in the country. Money laundering is regulated in terms of the Financial Intelligence Act, with specific reference to Know Your Customer (KYC) requirements. This requires stringent verification of the source of cash funds and reporting thereon.

Agribank is a non-deposit taking financial institution which does not provide banking services like commercial banks. Agribank’s business is solely based on advancing loans to individuals, business entities, or financial intermediaries for the promotion and development of agriculture and related activities in the country. This implies that the Bank has limited cash handling facilities and does not charge clients for cash deposits. At the same time, the Bank continues to bear the costs when depositing cash in its own bank accounts at commercial banks.

With reference to Agribank services, one of the requirements when accessing Agribank loan products, is that an applicant is required to have a bank account with any commercial bank. Prospective clients who do not have bank accounts are required to open a bank account as a condition to access Agribank loan facilities. As such, the decision to not accept cash payments will not affect the ability of clients to make payments through electronic bank transfer and deposits through commercial banks.

Clients are therefore advised to obtain Agribank bank account details from their monthly account statements at Agribank offices and make payments through commercial banks. Clients are advised to indicate their loan account numbers as a reference, when making loan payments, to ensure timeous allocation to their accounts. Alternatively, clients are also encouraged to sign up for debit order deduction services with the Agribank for once-off payments or re-current monthly payments.

Lastly, Agribank would like to encourage clients to continue honouring their loan obligations, by ensuring timely payment of their loan instalments. This will enable the Bank to continue delivering on its mandate of promoting and developing the agriculture sector, to ensure national food security, promote sustainable employment, and improve overall economic growth.

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 INAUGURATES REVAMPED OTJIWARONGO OFFICE

14 Oct 2022

On Friday, 14 October 2022, the Agricultural Bank of Namibia inaugurated its revamped Otjiwarongo office, a development that is meant to enhance customer in-branch experience and brand visibility, in line with the Bank’s strategic plan. Otjozondjupa region lies at the centre of a highly potential agricultural area of the country, which flourishes in both livestock and crop farming. As a key player in financing the transformation, and expansion of agriculture in the country, Agribank has two offices in the Otjozondjupa region, with another office in Grootfontein, in recognition of the business potential of the region in the agricultural space.

The keynote speaker at the inauguration, Hon. James Uerikua, Governor of the Otjozondjupa region, applauded Agribank for its investment and commitment in the region, stating that "the overhaul of this office is a welcome expression of the trust and confidence that Agribank has in the economic potential of this town and the entire Otjozondjupa region." As such, the Governor called on Agribank as a public institution, to continue with its strategic role in contributing to food security, employment creation, and land reform efforts of the government.

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.

A facility for the farming community to purchase or raise birds such as chicken, ostriches, ducks, etc. to grow wealth for sustainable farming operations.
Poultry loans are repayable within five years.

Requirements

Applicants must have a clean credit record.
Applicants can either be full or part time farmers.
Applicants should be Namibian citizens.
Applicants must provide a business plan.
Agribank offers flexible installment options to suit client’s financial needs. The available installment options are: monthly, quarterly, biannual or annual.
Loans are granted against security of fixed property, investment or any other acceptable form of security (fixed deposits, investments and surrendering value of policies).
Quotations from registered dealers/suppliers must be provided.
Companies or co-operatives should provide audited financial statements, certificate of registration, association agreement, shareholders or directors of the company and must have a registered Auditing Firm.