The Agricultural Bank of Namibia (Agribank) reported that its loan book has reached a valuation of N$3.5 billion.
Agribank’s Executive of Sales, Hildegardt Martin, said this milestone highlights the bank’s significant role in promoting agricultural growth in Namibia through targeted financial solutions.
“We are strategically positioned across eight branches in Namibia, servicing all 14 regions. Agribank serves a diverse range of clients, including commercial producers, communal producers, and resettled farmers. The bank offers a broad spectrum of loans that cover various aspects of agriculture,” she said at a biomass conference.
Agribank also finances infrastructure, machinery, alternative energy solutions, labourers’ housing and other essential needs.
“We offer a wide range of loans, including those for production, piggery, poultry, and more,” Martin said.
She also noted the bank’s biomass financing scheme launched in 2022 has been particularly noteworthy, supporting charcoal production and processing.
“The biomass financing scheme has two streams: the charcoal production stream, which covers working capital for items like tractors and storage, and the charcoal processing stream, which finances equipment and vehicles for setting up processing plants,” she said.
Agribank has also designed its loan terms to meet the needs of farmers, offering flexibility in collateral and repayment.
“Working capital loans typically do not require collateral if the farmer has an offtake agreement with a processor or retailer. Capital investment loans, however, generally require collateral, with a loan-to-value ratio of 100%,” she noted.
In addition to financial products, Agribank provides free agri-advisory services to farmers, including mentorship and training.
“We often provide tips to our farmers, particularly communal farmers, to help them succeed. Hands-on management, proper bookkeeping, and securing offtake agreements are crucial for success,” Martin added.
