The Bank of Namibia (BoN) has instructed local financial institutions to implement relief measures tailored for farmers and agricultural businesses grappling with severe financial hardship due to the drought.
According to BoN’s Director of Strategic Communications and International Relations Kazembire Zemburuka, this follows a state of emergency after the worst drought that the country has experienced in 100 years.
He said the Determination on Policy Changes in Response to Economic and Financial Stability Challenges (BID-39) officially took effect on 23 October 2024.
“The Bank of Namibia is pleased to announce the coming into force of the Determination on Policy Changes in Response to Economic and Financial Stability Challenges as a result of the State of Emergency over the Persistent Drought in Namibia (BID-39) on 23 October 2024. The Determination was issued following the declaration of a state of emergency by the President on 22 May 2024,” he said.
The measures include restructuring loans, offering moratoriums on loan repayments, and providing access to emergency funding under preferential terms.
By doing so, the Bank of Namibia aims to ease the financial burden on affected clients while stabilising the agricultural sector during this critical period.
The determination is specifically aimed at agricultural clients who can substantiate significant impact from the drought, which has continued to affect Namibia for several years.
“The determination is a reflection of the Bank’s ongoing commitment to supporting the agricultural sector during these challenging times by ensuring that local farmers and agricultural businesses have the financial flexibility they need to navigate the drought crisis,” he said.
The policy will remain effective until October 2026, with provisions for continuous review to adapt to evolving conditions.
The developments come as Namibia has been experiencing an extended drought for the past decade, a situation worsened by the El Niño phenomenon currently affecting the central and eastern Pacific Ocean.
The El Niño conditions have led to below-normal rainfall across most of the country between October 2023 and April 2024, with over 1.4 million people now facing heightened levels of acute food insecurity.
