AGRIBANK will need to raise N$300 million at affordable interest rates each year to meet the growing demand for loans in agriculture and related industries, its Chief Executive Officer said.

"Obtaining these funds at reasonable rates will enable the bank to maintain lower interest rates, especially for small-scale farmers in communal areas," Leonard Iipumbu said on Monday in a general overview of AgriBank's activities of 2009.

AgriBank issued loans totalling N$135,9 million last year, shooting up by 70 per cent compared to N$79,9 million in 2008.

Last year AgriBank signed off loans worth N$9,5 million to the Etunda Irrigation Scheme for both the service provider and the 86 small-scale farmers.

Similarly, 51 small-scale farmers at the Ndonga Linena, Shadikongoro and Vunguvungu irrigation projects in the Kavango Region will jointly receive N$6,5 million in loans.

"AgriBank and the Agriculture Ministry are in consultations to establish a financing scheme for crop production which is to benefit both communal and commercial farmers at affordable interest rates," Iipumbu announced.

"The immediate concern is to address the issue of collateral in communal areas since currently land there cannot serve as collateral and this is a deterrent to investment in communal areas," according to Iipumbu.

"AgriBank will continue to discuss with Government how to identify appropriate methods of financing small-scale farmers in communal areas, which offer great opportunities for growing the economy.

AgriBank also identified the need for training emerging and resettled farmers as one of the most important factors that could play a significant role in the success of the land-reform programme. The bank contracted Agrifutura to conduct training in farm management and productivity "to encourage sustainable utilisation of every piece of land to ultimately increase food production."

About 260 trainees were successfully trained in Windhoek, Otjiwarongo, Gobabis and Swakopmund in 2009.

AgriBank will support more training courses this year to transfer modern farming skills to emerging farmers so they can meet the challenges of sustainable food production, wealth creation and value addition in the agriculture sector.

AgriBank also signed agreements with the University of Namibia and the Polytechnic in December 2009 with regard to financing student bursaries, internship at AgriBank, training of AgriBank staff at these tertiary institutions, research and product development in areas of livestock, aquaculture and crop production. Two students received bursaries to the amount of N$118 000 last year, said Iipumbu.