The Bank of Namibia (BoN) has called for tailored financial products to address the unique needs of smallholder farmers and promote sustainable agricultural development
Speaking at the bank’s 25th annual symposium, BoN Governor, Johannes !Gawaxab, said the central bank sees merit in improving access to finance through innovative agricultural technologies and regenerative farming practices.
By providing farmers with appropriate financial support, he believes that Namibia can enhance productivity and resilience, particularly in the face of climate change.
“As such, solutions regarding access to finance need to better understand the various profiles of participants and the conditions and market context in which they operate. To this end, the Bank of Namibia see merit in an ecosystems approach to agricultural development through holistic investment, including tailor-made financing tools,” he said.
He further highlighted the need for increased speed and quality of innovation, pointing out that agri-tech services are reshaping the sector by enabling sustainable farming and efficient supply chains.
However, while large farms are adopting advanced technologies, smallholders in emerging economies face challenges in doing so.
He emphasised that embracing innovation, such as regenerative agriculture systems, could transform the agricultural sector into a sustainable and climate-resilient industry, boosting productivity, reducing carbon emissions, and preserving natural resources.
“While adoption of genetic science and water- and soil-management technologies may continue to grow on larger farms, adoption by smallholders in emerging economies remains a challenge. The world is changing, and innovation is the fastest way to fast-track these changes,” !Gawaxab said
The governor underscored the importance of high-quality partnerships, noting that the complexity of agri-food value chains requires reliable partners who provide top-tier products rather than lower-quality materials.
“We do not need partners that are providing us with their lowest-quality materials while keeping the best for themselves. But rather, we need trustworthy and consistent partners that will supply Namibia with A-grade products that will put Namibian products on the map,” he said.
He also emphasised the need for a farmer-centric approach. He argued that the success of agricultural global value chains (AGVC) efforts depends on farmers having a supportive environment that fosters innovation and collaboration.
He said policymakers should work with farmers to create new business models that allow them to take leadership roles and drive sustainable consumption and production within the value chain.
“Our farmers need a favourable environment that allows for innovation and increased collaboration. That is, our role as policymakers – working with farmers to balance their position in the value chain and allow for better impact,” he said.
