Agribank has in the past 12 months disbursed loans amounting to N$173 million to people and institutions in the agriculture sector.
Latest figures from the agriculture focused bank show that N$10.8 million was disbursed to qualifying clients, specifically under the women and youth loan scheme.
Agribank Spokesperson Fillemon Nangonya said half of the N$10.8 million went to land purchasing by beginners, while the other share financed the purchasing of large and small stock, poultry and construction of dwellings and other permanent farm buildings.
The women and youth scheme was introduced in October 2020 to cater for women above the age of 18 years, as well as youth (men and women) between 18 and 35 years, and agricultural professionals/graduates above 18 years of age.
“These include interest rates fixed at seven per cent across all loan products under the scheme, one year grace period, and financing of unsecured loans to individuals or entities who do not have collateral, provided that there is an offtake agreement in place to be provided by a client,” he said.
Nangonya said going forward, the bank seeks to create collaboration synergies for the women and youth scheme to promote off-take agreements in the value chain financing.
“This will enhance market access and availability to farmers and realize greater participation and adoption by small-scale farmers in the sector and increase food security as well as wealth creation among the youth,” he said.
“Agricultural finance is the bedrock of food self-sufficiency, wealth creation and improvement in overall economic growth. To promote sustainable agriculture, the inclusion of women and youth is vital, therefore, Agribank will continue to focus on addressing inclusivity, promoting product diversification, smart climate resilient production systems, technological innovation and embedding financial sustainability.”
Agribank is a State-Owned Enterprise mandated to promote growth and development of agriculture through affordable and innovative financing.
