The Agricultural Bank of Namibia (AgriBank) has so far provided funding of N$154.7 million in loans to farmers in the two Kavango regions.
The Bank’s Chief Executive Officer Dr Raphael Karuaihe said the financial institution has 494 active loan facilities.
“The two Kavango regions are strategic growth centres for Agribank, and we are confident that the visibly elevated office here will improve our service delivery in the regions whilst creating opportunities for growth,” said Karuaihe.
“Agribank Rundu office currently serves 316 active clients with 494 loan facilities worth over N$154.7 million, whereby Kavango East region has the biggest number of clients standing at 305, worth over N$151 million, while Kavango West has 11 clients with a loan book value of N$2.9 million,” he added.
The CEO made these revelations at the opening of a revamped office in Rundu, where he emphasised that Agribank is a national development finance institution expected to play a catalyst in addressing key national development issues such as food security, poverty reduction and employment creation within the agricultural space.
“Thus, the focus on socio-economic transformation is on creating targeted interventions to ensure that the Bank achieve inclusive developmental outcomes,” he emphasised.
Meanwhile, the Governor for Kavango Bonifasius Wakudumo, applauded the bank for its gradual move of financial inclusion.
“With Government’s emphasis now on value addition and growth-at-home; the Bank has accordingly realigned its strategy to ensure that it also plays a meaningful role in this strategic objective, by offering financing of value addition activities in the agricultural space,” stressed the governor.
Agribank advances loans which can be utilized for purchasing farmland, production inputs, livestock, farming infrastructure, vehicles and equipment; biomass management, aquaculture, poultry, piggery and post-settlement support, as well as value addition through agro processing.
The Bank further provides training and mentorship services to farmers through the Agri-Advisory Services Division.
Board Chairperson Josephat Mwatotele, said the Bank is focused on financial sustainability, service delivery and socio-economic transformation.
He reiterated that financial sustainability requires Agribank to stretch its limited resources in new and innovative ways, so that it can be prudent in the use of available resources in a responsible and transparent manner.
This Mwatotele said includes cost management; and growing the bank’s loan book and finding new ways to grow its capital base.
“Financial sustainability also means that clients need to honour their obligations and ensure timely loan repayments to the bank, as this is the only way we can make a wider and inclusive impact on agriculture and contribute to the development of our country,” he urged.
