The Agricultural Bank of Namibia (Agribank) says it has advanced loans worth N$1.1 billion to 2,700 clients in the Otjozondjupa Region.
The agriculture-focused bank said of the loans, it has financed over N$1.8 million to full-time communal farmers, without collateral, through the Emerging Retail Financing Product (ERFP) and paid over N$10.7 million to 13 beneficiaries of the newly introduced Women and Youth Loan scheme.
“The top three loan products in the region that the Bank financed are land for beginners, full-time affirmative action loans, and livestock loans.”
Agribank’s loans can be utilised for purchasing farmland, production inputs, livestock, farming infrastructure, vehicles and equipment, biomass management, aquaculture, poultry, piggery, post-settlement support, as well as value addition through agro-processing.
Otjozondjupa regional Governor James Uerikua speaking during the inauguration of its revamped Otjiwarongo office on Friday, commended the bank for its investment in the region.
“The overhaul of this office is a welcome expression of the trust and confidence that Agribank has in the economic potential of this town and the entire Otjozondjupa region,” he said.
Agribank’s Chief Executive Officer Dr Raphael Karuaihe said “over the past five years, Agribank has embarked on a journey, not only to transform the institution to become the pinnacle of corporate governance and service delivery efficiencies, but also to ensure that it plays a meaningful role in catalysing the transformation and growth of the agricultural sector, through the adoption of a clear strategic plan”.
Agribank has two offices in the Otjozondjupa region, with another office in Grootfontein, in recognition of the business potential of the region in the agricultural space.
As part of its five-year strategic plan, Agribank is focusing on preserving the business in a difficult operating environment, securing sustainable sources of affordable loan book funding, new business growth, maintaining sustainable collections trajectory, maintaining prudent expense management; and robustly managing provisions for bad debt.
“Moreover, the Bank intends to diversify its loan book for climate resilience and inclusivity, as well as embed automation and operational efficiencies within the Bank to sustain a high-performance environment and enhance brand reputation, while also balancing the mandate for sustainability and shareholder/policymaker/client expectations.”
