Namibia: Agribank provides 1,300 farmers to its mortgage portfolio

The Agricultural Financial institution of Namibia (Agribank) disbursed loans totaling N $ 217 million, benefiting a complete of 1,301 farmers between April 2020 and March 2021.

That is what Fillemon Nangonya, head of public relations at Agribank, mentioned in a press release launched yesterday.

The financial institution, a public entity, is remitted to advertise the expansion and improvement of the agricultural sector by issuing reasonably priced and revolutionary finance.

Loans issued from April to September 2021 will solely be reported on the finish of the present fiscal yr, though the full disbursement to this point of August 2021 is estimated at N $ 70 million,” Nangonya mentioned. .

The loans are anticipated to come in useful for farmers after climate specialists predicted a very good wet season final week for many international locations within the SADC area, together with Namibia.

Previously, the financial institution has had issues with farmers failing to repay their loans, leading to mixed arrears of N $ 500 million. Nevertheless, Nangonya mentioned the financial institution has taken steps to rectify the scenario.

“Word that the earlier three years of drought, which mirrored the worst consecutive drought in Namibia’s historical past ending in 2019, affected the agri-food business.

“Though above-average rainfall was recorded for 2020, this aid has allowed farmers to restock to some extent, however herds of cattle haven’t but reached the degrees required by many farmers to sustainably repay their prices. Agribank loans. “

He mentioned that though the present arrears price is 24%, the financial institution stays centered on preserving the enterprise in a troublesome working setting, via rigorous administration of dangerous debt provisions to make sure sustainability. kind the financial institution.

“Sooner or later, the financial institution made a promise to the shareholder at this yr’s annual common assembly, to make sure the discount of the arrears price from 24% to 22%,” he mentioned. declared.

In accordance with Nangonya, the financial institution’s loans proceed to profit all Namibians in all areas, together with communal farming areas.

“For fiscal yr 2020/21, the communal farming areas shared a complete of 19% of superior loans. As well as, an quantity of N $ 13 million was completely superior to communal farmers with out collateral.

To ensure the reimbursement of the mortgage by the beneficiaries, the financial institution doesn’t provide any collateral loans, primarily to salaried communal farmers, because the mortgage is repayable month-to-month by deduction from the wage, added Nangonya.

“For the rising retail finance product, farmers are connected to a mentor authorized by a financial institution all through the mortgage facility.

“That is along with a obligatory coaching program within the manufacturing, administration and advertising and marketing of the merchandise for which the mortgage is requested,” he mentioned.

In accordance with the official, the financial institution additionally supplied a mortgage program for girls and younger individuals in October 2020 that gives particular remedy for agricultural professionals, versatile grace durations and tolerance for collateral shortages, a- he declared.

The funds will come from the N $ 357.4 million that Agribank has made out there for all mortgage disbursements via March 2022.

Ladies and youth can entry funds via three mortgage amenities, specifically money circulate / contractual loans, wage-backed loans, and relaxed collateral necessities for farmland.

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